TRANSPORT INT'L (00062) has issued a profit alert, forecasting a significant decline in its core earnings for the first half of the year.
The company expects its group core profit for the six months ending June 30, 2026, to decrease by approximately 45% to 55% compared to the HK$285 million in core profit achieved in the corresponding period of 2025. Core profit excludes the effects of fair value changes on investment properties and investment properties under development.
Primary Reason for the Decline
The anticipated drop in core earnings is primarily attributed to a sharp and rapid surge in international fuel prices. The ongoing crisis in the Middle East has triggered this steep increase and heightened market volatility.
Since the end of February 2026, fuel prices have soared dramatically, rising by nearly 200% from around US$90 per barrel to a peak exceeding US$250 per barrel.
Mitigation Efforts and Ongoing Challenges
Despite the Hong Kong SAR Government providing short-term fuel and tunnel fee subsidies, and the group implementing various cost-control measures to lessen the financial impact, its performance has still been unavoidably and adversely affected.
Furthermore, although international fuel prices have recently retreated from their highs, the market environment remains highly volatile.
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