Sui Group’s shares advanced 8% on Thursday after the company reported a 23% year-over-year increase in net profit for the second quarter, exceeding market expectations.
The Hong Kong-listed logistics and supply chain provider posted net profit of HK$1.45 billion ($185 million), up from HK$1.18 billion a year earlier. Revenue rose 12% to HK$12.3 billion, driven by higher demand in its core Asian markets.
Analysts had forecast net profit of HK$1.32 billion, according to a Refinitiv consensus. The company cited improved operational efficiency and cost controls as key contributors to the earnings beat.
Sui Group’s stock had lagged broader market gains in recent months, trading near multi-year lows before the earnings release. The shares were up 8% at HK$12.40 in mid-morning trading, outpacing the Hang Seng Index’s 1.2% gain.
The company’s management highlighted expansion in Southeast Asia as a growth driver, with new contracts signed in Vietnam and Thailand contributing to the revenue increase. Sui Group also noted that its debt-to-equity ratio improved to 0.75 from 0.82 a year ago, reflecting stronger balance sheet metrics.
Investor reaction reflected confidence in the company’s ability to sustain momentum, with trading volumes nearly doubling compared to the 30-day average.
