KLN Logistics Group (636) H1 2025 earnings summary

Executive summary

• Revenue grew 7% year-over-year to HK$27,211 million for the first half of 2025, with core operating profit up 12% to HK$1,348 million and core net profit up 12% to HK$681 million.

• Profit attributable to shareholders increased 34% year-over-year to HK$648 million, excluding a one-off gain from discontinued express operations in 2024.

• Interim dividend declared at 11 HK cents per share, up from 10 HK cents in 2024, payable on or around 23 September 2025.

Financial highlights

• Gross profit reached HK$2,933 million, up from HK$2,518 million in the prior year period.

• Free cash flow more than doubled to HK$1,297 million as of June 30, 2025.

• Basic and diluted EPS from continuing operations were HK$0.36, up from HK$0.33.

• Gearing ratio at 53.0% as of 30 June 2025.

• Total comprehensive income for the period was HK$1,864 million, a significant increase from HK$291 million in 2024.

Outlook and guidance

• Global economic uncertainty, trade tensions, and volatile tariffs expected to persist into 2H 2025.

• Logistics demand projected to normalise; cost control and efficiency measures to continue.

• IL business expected to improve as macro conditions stabilise, with growth in healthcare, construction, and clean energy sectors.

• IFF business remains sensitive to geopolitical and trade dynamics; volatility in freight rates likely to continue.

• Expansion in charter operations and new markets (Sri Lanka, Dubai, Mexico) to support long-term growth.