Tsun Yip Holdings Limited issued a profit alert indicating that, based on unaudited management accounts for the year ended 31 March 2026, profit attributable to shareholders is expected to reach approximately HK$7.60 million. This contrasts with the HK$11.30 million loss recorded for FY25, marking a clear return to profitability.

Key drivers behind the projected improvement:

1. Revenue Growth • Several existing civil engineering projects entered peak construction phases, lifting overall revenue.

2. Margin Expansion • Gross profit and margin improved as higher-margin projects advanced and subcontracting costs fell following successful finalisation of accounts on a completed project. • The benefit was partly offset by additional costs on projects in maintenance or near completion stages.

3. Credit-Loss Reversal • Provision for expected credit losses dropped significantly compared with the HK$13.20 million charge in FY25, when receivables from a customer under provisional liquidation were impaired.

4. Lower Operating Costs • Administrative expenses declined due to reduced legal and professional fees associated with earlier special transactions and a smaller provision for long-service payments after changes to Hong Kong’s MPF offsetting mechanism.

5. One-off Comparison Effect • The FY26 results will not include the non-recurring HK$17.30 million fair-value gain recognised in FY25 from modifications to a promissory note.

The figures remain subject to audit and review; final FY26 results are scheduled for release on 29 June 2026. Shareholders and investors are advised to exercise caution when dealing in the company’s shares.