Build King 2026 Interim Results: Profit Up 5% to HK$187.37 Million on Strong Margins; HK4 Cent Dividend Maintained

Bulletin Express09-18

Build King Holdings reported 2026 interim profit attributable to shareholders of HK$187.37 million, a 5.0% increase year-on-year, despite a 14.0% drop in group revenue to HK$5.96 billion. Gross profit slipped 4.9% to HK$431.66 million, yet margin expanded to 7.2% (2025: 6.6%) on better final contract values and leaner administration costs.

The Board declared an unchanged interim dividend of HK4 cents per share, payable on 28 September 2026 to shareholders on record as of 14 September 2026.

Operationally, Hong Kong construction remained dominant, generating HK$5.82 billion in revenue (2025: HK$6.79 billion) and HK$197.73 million segment profit. New Hong Kong contract awards totalled HK$6.40 billion year-to-date, lifting the outstanding order book to HK$32.60 billion—split among Civil (HK$19.00 billion), Building (HK$12.70 billion) and Specialist (HK$0.90 billion) divisions.

Mainland China environmental businesses—steam supply and wastewater treatment—delivered HK$141.34 million revenue, up 27.8%, with segment profit more than doubling to HK$32.06 million on higher steam output (135 tonnes/hour, +25%). Presales began at the Group’s 10%-owned Haitao Garden redevelopment project in Shenzhen; phased completion is scheduled between 2027 and 2029.

Liquidity strengthened: cash, bank balances and short-term deposits rose to HK$3.32 billion (31 December 2025: HK$2.59 billion). Interest-bearing borrowings increased to HK$100.00 million, keeping gearing at 3%. Fixed-rate debt accounted for 54.0% of borrowings. Pledged bank deposits stood at HK$64.21 million, while property, plant and equipment of HK$50.87 million were pledged for banking facilities.

Total equity attributable to shareholders edged up 1.1% to HK$2.95 billion, equating to equity per share of HK$2.38. Staff headcount fell to 3,410 (31 December 2025: 3,587), with total staff costs marginally lower at HK$1.01 billion.

Management cites a robust order backlog, improving project margins and disciplined cost control as foundations for sustained profitability, while acknowledging revenue volatility linked to project cycles.

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