HK Stock Market Move | EAGLE NICE (02368) fell more than 9% after issuing a profit warning, and is expected to see a year-on-year decline in net profit of no more than 30%.

EAGLE NICE (02368) dropped more than 9% after issuing a profit warning, and as of the time of writing, it has fallen by 8.22% to 2.68 Hong Kong dollars, with a turnover of 2.1011 million Hong Kong dollars. On the news front, on the evening of May 22, EAGLE NICE issued an announcement, expecting a significant decrease of not more than 30% year-on-year in the profit attributable to owners of the company for the year ending March 31, 2026. The board of directors believes that the expected significant decrease in profit attributable to the owners of the company is a direct result of the significant decline in the group's performance in the second half of the reporting year. This is mainly attributed to the deep impact of the US government's tariff policies on several Southeast Asian countries where the group has production bases, leading to an increase in production costs and higher sales costs. Brand customers, facing severe cost pressures resulting from the above tariff policies, changing consumer demands, and intense competition in the sportswear manufacturing industry, have adopted a more conservative and cautious attitude in negotiations with the group on sales prices, leading to a decline in gross profit margin.