BATELAB (02149.HK) saw its shares plummet by 9.66% in Monday's trading session, despite reporting a 15% increase in profit for the first half of 2025. The semiconductor manufacturer's stock took a significant hit as investors appeared to focus on the company's minimal revenue growth and cost-cutting measures.
According to the company's interim results, BATELAB's net profit rose to 77.1 million yuan in H1 2025, up from 67.1 million yuan in the same period last year. Earnings per share increased to 1.266 yuan, compared to 1.119 yuan in the previous year. However, revenue growth was lackluster, with a mere 0.4% increase to 291.7 million yuan.
The company attributed its profit growth primarily to improved management efficiency, which led to lower administrative and R&D expenses. This cost-cutting approach, rather than top-line growth, appears to have raised concerns among investors about the company's long-term growth prospects. The market's negative reaction suggests that shareholders may be looking for more substantial revenue growth and market expansion from BATELAB in the competitive semiconductor industry.
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