Global Chi BC profit to surge 6-9x on construction boom

Hong Kong-based construction firm Global Chi BC (01757.HK) issued a positive profit alert, projecting net profit to increase by six to nine times for the financial year ended in June.

The forecast was released in a filing to the Hong Kong Stock Exchange.

The company attributed the sharp growth to a HKD 432 million rise in construction revenue and an associated improvement in profit margins, with expected net profit to land between HKD 8 million and HKD 12 million.

The announcement comes as Hong Kong’s economy shows surprising strength, with first-quarter gross domestic product growing 5.9 percent, its fastest pace since 2021, according to government data.

Global Chi BC's performance reflects a resilient local economy that is weathering global energy shocks and geopolitical tensions. The city's growth has been fueled by strong global demand for artificial intelligence infrastructure, along with a recovery in local consumption and investment, creating a favorable environment for the construction sector.

The positive alert suggests a significant operational turnaround and improved profitability for the company. Investors will be watching for the final, audited results to confirm the magnitude of the earnings growth and any potential dividend announcements.

This article is for informational purposes only and does not constitute investment advice.