HENG HUP (01891) issued a profit warning, expecting that the comprehensive profit attributable to shareholders for the first half of the year will decrease by approximately 60% to 90%.

HENG HUP (01891) announced that, compared to the six months ending June 30, 2025 (the first half of 2025), the Group expects the profit attributable to the owners of the company for the first half of 2026 to decrease by approximately 60% to 90%. The decrease is primarily attributed to a significant increase in transportation costs in the first half of 2026, leading to higher distribution and selling expenses. The rise in transportation costs is mainly due to the current transportation and logistics cost environment in Malaysia, including changes in fuel subsidies and quota arrangements caused by the war in Iran. Although the Group expects a slight increase in gross profit for the first half of 2026, this increase is insufficient to offset the substantial rise in transportation costs and other operating expenses. Therefore, compared to the first half of 2025, the Groups operating profit and profit before income tax for the first half of 2026 are expected to decrease.