SU Group Holdings Reports 5.6% Revenue Growth but HK$18.5 Million Net Loss for FY2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Revenue Growth: SU Group achieved revenues of HK$192.4 million for FY2025, reflecting a 5.6% year-over-year increase driven by strong demand for security-related engineering services, despite facing cost pressures.
- Rising Costs: Costs surged by 20.1% to HK$161.6 million, primarily due to increased employee benefits and statutory minimum wage hikes, resulting in a gross margin decline from 26.1% to 16.0%, which impacted short-term profitability.
- Net Loss Situation: The company reported a net loss of HK$18.5 million for FY2025, a significant drop from a net income of HK$10.7 million in FY2024, with a net loss margin of 9.6%, highlighting challenges in profitability.
- Future Outlook: Despite these challenges, SU Group plans to continue investing in operational capabilities and market expansion to achieve long-term sustainable growth, emphasizing the importance of cost management and cash flow improvement.
Analyst Views on SUGP
About SUGP
SU Group Holdings Ltd is a holding company mainly engaged in the provision of security-related engineering services. The Company operates its business through its subsidiaries, Shine Union Ltd and Fortune Jet Management & Training Co Ltd. The Shine Union Ltd provides turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems. It is also the exclusive distributor to market and sell two brands of threat detection systems, which includes X-ray machines, trace detection products, metal detectors and mail screening machines. Fortune Jet Management & Training Co Ltd mainly provides security guarding and screening services and related vocational training services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
