L&K Engineering (Suzhou) Forecasts Strong First-Half Profit Surge

Stock News07-08

L&K Engineering (Suzhou) Co., Ltd. (603929.SH) has issued a positive earnings forecast.

The company anticipates its net profit attributable to shareholders for the first half of 2026 to be in the range of 456 million to 525 million yuan.

This projection represents a significant year-on-year increase of between 183.41% and 226.29%.

Key Factors for the Anticipated Growth

The company attributes the expected strong performance to several key factors.

Firstly, the company's major engineering projects in Singapore are characterized by substantial contract values and comparatively favorable gross margins.

Effective internal management and a successful subcontracting strategy have helped control project costs.

The ongoing progress of these projects is contributing positively to the current period's net profit.

Secondly, settlements and collections from construction projects initiated in the previous period have been proceeding smoothly.

This has led to a significant reversal of provisions for impairment of contract assets during the current reporting period.

Thirdly, the strengthening of the US dollar against the Singapore dollar has resulted in considerable foreign exchange gains on the company's US dollar deposits.

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