Shares of Smart Digital Technology Group (HKG:1159) surged 6.74% in Monday's morning trading session, following the company's announcement of a remarkable turnaround in its financial performance for the first half of the year.

The film and TV investor reported an attributable profit of HK$151 million for the six months ended June 30, 2025, marking a significant improvement from a loss of HK$11.3 million in the same period last year. This translate to earnings per share of HK$1.4845, compared to a loss per share of HK$0.1152 in the prior year. The dramatic swing to profitability appears to have sparked investor enthusiasm, driving the stock's sharp rise.

Interestingly, while profits soared, the company's revenue more than halved year-on-year to HK$11.7 million from HK$25.6 million. This contrast between falling revenue and rising profits suggests that Smart Digital Technology may have implemented successful cost-cutting measures or benefited from non-operating income. Investors will likely be keen to see if the company can maintain this profitability trend in the coming quarters, especially in light of the reduced revenue.