HK Stock Market Move | LEOCH INT'L (00842) plunges more than 21% in the afternoon, with a expected decrease in net profit of about 60% to 80% year-on-year in the first half of this year.

LEOCH INT'L (00842) plunged more than 21% in the afternoon, with a drop of 21.08% to 1.76 Hong Kong dollars, and a turnover of 33.02 million Hong Kong dollars as of the time of writing. On the news front, LEOCH INT'L issued a profit warning in the afternoon, stating that for the six months ended June 30, 2025, despite the group's expected revenue to increase by about 10% to 20% compared to the same period last year, the net profit attributable to the owners of the parent company is expected to decrease by about 60% to 80% due to the significant increase in costs related to taxed delivery products following the US government's imposition of additional import tariffs globally in the second quarter of 2025. However, based on the group's market strategy considerations, the price increase for these products is planned to be delayed until the end of 2025; and due to supply chain and construction progress issues, the start-up of the factory in Mexico has been postponed from the second quarter of 2025 to the fourth quarter of 2025.