EGL Holdings HY profit surges 400% on ending COVID-era leases, Japan travel rebound

EGL Holdings

28/08/2026 11:57

Overview
Hong Kong travel and hotel operator's interim revenue rose 4.3% yr/yr to HK$721.3 mln
Net profit for the period surged 407.8% yr/yr
Travel segment rebounded as Japan-bound demand recovered; hotel revenue declined post-Expo

Outlook
EGL Holdings expects further growth in travel-related business as Japan tourism recovers
Company forecasts revenue and gross profits to stabilise in H2 2026
EGL Holdings says it has secured additional credit facilities to support working capital needs

Result Drivers
JAPAN TRAVEL RECOVERY - Co said Japan-bound tours rebounded after earthquake rumours were debunked and yen depreciation boosted demand
HOTEL SEGMENT DECLINE - Co attributed hotel revenue and gross profit declines to post-Expo normalization and fierce competition
LEASE TERMINATION GAINS - Co recognized a HK$9.1 mln gain on terminating Covid-era travel-bus lease contracts

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
HK$721.3 mln
 
H1 Profit Attributable
 
HK$29.4 mln
 

Analyst Coverage
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads
Aug 27 - Hong Kong's Shangri-La Asia H1 net income surges, partly helped by lower interest expenses
Aug 25 - Hong Kong's Keck Seng H1 revenue rises 20% on hotel recovery
Aug 26 - Australia's Flight Centre annual profit misses estimates on Mideast-linked travel disruptions

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-28/5d03131e-a3e8-48d2-9585-4151f895630e.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)