Hengdeli <3389> profit alert - possible reduction in loss

Hengdeli Holdings Limited (HK:3389) reported a profit of approximately RMB26.3 million for the first half of 2025, marking a significant improvement from a RMB2.5 million loss in the same period of 2024. This turnaround was attributed to foreign exchange gains and improved gross profit margins, despite a 45.8% year-over-year decline in revenue. According to company reports, the company's earnings per share (EPS) for H1 2025 stood at CN¥0.006, compared to a CN¥0.001 loss in H1 2024.

The profit follows a challenging full year 2024, during which the company recorded a CN¥0.015 loss per share, reflecting broader operational pressures. While the interim results are still being finalized for release in August 2025, recent shareholder activity, including a 17% stake acquisition by Fung Ka Kiu Ann, highlights renewed investor interest.

Hengdeli's business spans the manufacturing and sale of accessories for watches, jewelry, and cosmetics in China and Hong Kong. Its financial health score is rated 6/6, though valuation and growth metrics remain weak. The stock has experienced volatility, with a 31% price jump in early 2026, though analysts caution that risks such as share price stability and corporate governance—less than half of directors are independent—remain relevant.

Investors are advised to await the formal interim report for granular details, as the company emphasizes prudence in interpreting its securities amid ongoing market dynamics.