Kwoon Chung Bus (SEHK: 00306) has announced a positive profit alert for the company.

The group anticipates reporting a consolidated pre-tax profit of approximately HK$290 million for the fiscal year ending March 31, 2026.

This represents an increase compared to the consolidated pre-tax profit of about HK$161 million achieved in the previous fiscal year ended March 31, 2025.

Key Drivers of the Profit Increase

The rise in pre-tax profit is primarily attributed to the overall robust performance across the group's various business segments during the year.

Both the non-franchised and franchised bus operations recorded significant revenue growth.

The group's bus-related businesses performed at their best level in recent years, benefiting from steady growth in demand for cross-border and local bus services.

This was further supported by fare adjustments for franchised bus services and a recovery in passenger volume.

Structural Growth Opportunities

The deepening integration of the Greater Bay Area has strengthened connections between Hong Kong and mainland cities in the region for business, tourism, and daily commuting.

This development is providing structural growth momentum for the group's overall business operations.

Cost Management Amidst Challenges

Despite these positive factors, the group continues to face persistently high fuel and labor costs.

Influenced by international oil price volatility and geopolitical factors, local retail fuel prices have remained elevated for an extended period, with a notable increase recorded in March 2026.

To counter these pressures, the group has been continuously optimizing fleet deployment and scheduling.

By enhancing operational efficiency and strengthening cost control measures, the company has effectively maintained a stable operating profit level for its overall business.