Haichang Ocean Park (SEHK:2255) Loss Deepening To C¥295 Million Fuels Bearish Narratives

Haichang Ocean Park Holdings (SEHK:2255) opened FY 2025 with first half revenue of C¥686.3 million and a basic EPS loss of C¥0.036, against trailing twelve month revenue of C¥1.7 billion and a trailing EPS loss of C¥0.117. Over the past year, the company has seen revenue move from C¥799.8 million in 1H 2024 to C¥686.3 million in 1H 2025, while basic EPS shifted from a loss of C¥0.010 in 1H 2024 to a loss of C¥0.036. This keeps the focus firmly on how quickly margins can recover from current loss levels.

See our full analysis for Haichang Ocean Park Holdings.

With the headline numbers on the table, the next step is to set these results against the widely held market narratives around Haichang Ocean Park Holdings to see which views hold up and which ones the latest margins start to challenge.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Deepen To C¥295 Million In 1H 2025

• Net income excluding extra items moved from a loss of C¥84.2 million in 1H 2024 to a loss of C¥295.1 million in 1H 2025, while trailing twelve month net loss reached C¥955.9 million on C¥1.5b of revenue.
• Bears argue that a company with multi year loss trends has earnings quality issues, and the current figures support that concern as:
  • Trailing twelve month basic EPS sits at a loss of C¥0.104, compared with the 1H 2024 loss of C¥0.010. This aligns with the idea of worsening profitability over recent years.
  • The reported 10.4% annual deterioration in losses over five years is consistent with the step up from a C¥84.2 million loss in 1H 2024 to C¥295.1 million in 1H 2025, rather than indicating any clear sign of improvement.

Trailing Loss Of C¥955.9 Million Drives Valuation Risk

• Over the trailing twelve months, Haichang Ocean Park Holdings produced C¥1.5b of revenue but a net loss of C¥955.9 million, and trades on a P/S of 3.7x versus a Hong Kong Hospitality average of 0.9x and peer average of 1.7x.
• Critics highlight that paying a premium P/S for ongoing losses is a bearish setup, and the latest numbers lean in that direction as:
  • The combination of negative EPS on a trailing basis and a P/S more than 2x the peer average shows the market is valuing sales more highly here than for profitable peers in the same industry.
  • With no identified rewards in the trailing twelve month data to offset this, the premium multiple rests on a business that is still reporting sizeable losses rather than positive earnings support.

Investors who see these stretched P/S levels against heavy losses often want a deeper look at the cautious case in one place, which you can get through the 🐻 Haichang Ocean Park Holdings Bear Case.

Dilution Adds Pressure On Loss Making EPS Trend

• Shareholders faced substantial dilution over the past year while basic EPS moved from a loss of C¥0.010 in 1H 2024 to a loss of C¥0.036 in 1H 2025, alongside a trailing twelve month EPS loss of C¥0.104.
• What stands out for cautious investors is how dilution and EPS pressure sit together, because:
  • The rising loss per share means each share now reflects a larger portion of the company wide loss, even after the share count has increased.
  • This combination of higher aggregate losses and more shares on issue makes it harder for any future earnings recovery to translate into rapid EPS improvement without a meaningful turnaround in the income statement.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Haichang Ocean Park Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this all sounds cautious, remember you do not have to accept any single view at face value. Instead, take a close look at the data now and see how you feel about the 2 important warning signs.

Explore Alternatives

Haichang Ocean Park Holdings is working through heavy multi year losses, widening EPS pressure and dilution, while the P/S multiple remains well above industry peers.

If you want companies where earnings trends and balance sheets look more resilient, take a few minutes to scan the 274 resilient stocks with low risk scores to find ideas that may better fit your comfort level.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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