Pak Fah Yeow 2025 Results: Net Profit Rises 16.2% on Lower Fair-Value Losses; Revenue Falls 9.7%

Bulletin Express03-30 21:06

Pak Fah Yeow International Limited reported 2025 revenue of HK$213.88 million, down 9.7% from 2024, as softer Mainland China healthcare sales and lower treasury interest income outweighed rental growth in its property portfolio.

Reported profit climbed 16.2% to HK$91.35 million, driven by a sharp reduction in unrealised fair-value losses on investment properties (HK$6.33 million vs. HK$26.04 million in 2024). Underlying recurring profit, which excludes fair-value movements, decreased 7.8% to HK$95.55 million.

Segment performance • Healthcare: Revenue fell 9.2% to HK$197.31 million; segment profit slipped 8.6% to HK$116.76 million. China contributed 75.3% of healthcare revenue, declining 11.4% year-on-year amid cautious consumer sentiment. • Property Investments: Revenue increased 9.0% to HK$9.93 million on full occupancy across Hong Kong, Singapore and UK assets. Segment swung to a HK$2.14 million profit from a HK$18.48 million loss as fair-value volatility eased. • Treasury Investments: Revenue contracted 35.5% to HK$6.64 million following lower deposit yields, yet segment profit rose 19.5% to HK$11.37 million due to higher unrealised gains on listed securities.

Key financial metrics • Earnings per share: 29.3 HK cents (up 16.3%); underlying EPS: 30.7 HK cents (down 7.5%). • Shareholders’ funds: HK$722.75 million, edging down 1.3%. • Net asset value per share: HK$2.32. • Gearing ratio: 0.7%; current ratio: 18.4x. • Investment properties valued at HK$228.50 million, up 0.6%.

Cash return The board proposes a final dividend of 3.8 HK cents and a special final dividend of 7.2 HK cents. Including the interim payout of 8.0 HK cents, total 2025 dividends amount to 19.0 HK cents, 5.0% lower than the prior year.

Outlook Management expects a challenging 2026 operating environment amid subdued Mainland consumer demand, potential volatility in property markets and cautious treasury deployment, while maintaining a strong balance sheet and prudent cost control.

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