China Energy Engineering Corporation Limited (CH ENERGY ENG, 03996.HK) saw its stock price plummet 5.65% during intraday trading on Friday, following the release of its 2025 third-quarter financial results. The sharp decline comes as investors react to a significant drop in the company's quarterly profits, overshadowing other positive aspects of the report.
According to the unaudited results, China Energy Engineering's net profit attributable to shareholders for the third quarter decreased by 56.92% year-on-year. This substantial decline in profitability appears to be the primary driver behind the stock's negative performance. The company cited adjustments in the real estate market as a major factor impacting its bottom line, despite reporting a 9.62% increase in operating revenue to RMB 323.54 billion for the first three quarters of 2025.
While the company highlighted growth in its core energy, power, and water conservancy businesses, as well as strategic emerging industries, the market seems more focused on the profit contraction. China Energy Engineering also noted progress in its plans to issue A shares to specific subscribers, a move that could potentially impact the company's capital structure in the future. As the stock continues to face pressure, investors are advised to closely monitor further announcements and the company's ability to navigate the challenging real estate market conditions.
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