Understanding the Market | DALIPAL HLDG rose over 3% as mid-term net losses are expected to narrow significantly by over 70% year-on-year, with positive impacts from the Saudi project on long-term earnings
DALIPAL HLDG's stock price rose by more than 3%, with an increase of 3.36% as of the time of publication, trading at HKD 5.54, with a transaction volume of HKD 17.6333 million. The company expects a significant year-on-year narrowing of its interim net loss for the period ending June 30, 2025, by over 70%. The advancement of the Saudi project has a positive impact on medium to long-term earnings, but it has affected earnings in the short term. In a highly competitive industry environment, the company is enhancing its competitiveness through optimization of product and market structure
According to Zhitong Finance APP, DALIPAL HLDG (01921) rose over 3%, with a current increase of 3.36%, priced at HKD 5.54, and a transaction volume of HKD 17.6333 million.
On the news front, on August 1st, DALIPAL HLDG announced that it expects the group's net loss for the six months ending June 30, 2025 (reporting period) to narrow significantly by over 70% year-on-year (the unaudited net loss for the six months ending June 30, 2024, was RMB 69.8 million); in the first half of the year, the group's wholly-owned subsidiary DALIPAL Special Pipe Co., Ltd. (DALIPAL Special Pipe) made significant adjustments to its product structure, resulting in operational advantages and achieving a turnaround to profitability.
The main reasons for the group's losses in the first half of 2025 are as follows: Initial investment in the Saudi project: The group is actively promoting the deep implementation of the Saudi Dammam production base project, including preparations for capacity construction and local compliance work; the Saudi project is expected to have a very positive impact on the group's medium to long-term earnings, but it has affected certain current earnings. Intense industry competition: The domestic energy equipment industry is undergoing transformation and change, with supply and demand still in a cyclical adjustment phase, and the industry remains in a state of intense competition, limiting the overall profit margin of the industry, which has led to low operating profits for DALIPAL Special Pipe. As the group gradually puts into production the new intelligent production line in Cangzhou, China, and continues to optimize and adjust its product and market structure, the group's competitiveness will continue to improve, and the board of directors is confident about the group's future
