Precision Tsugami (China) Corporation (1651) H1 2025 earnings summary

Executive summary

• Revenue for April–September 2024 rose 32.4% year-over-year to RMB1,978.1 million, driven by manufacturing recovery, improved customer demand, and enhanced product competitiveness.

• Net profit increased 53.7% year-over-year to RMB340.0 million, with record gross profit margin at 32.1% and net profit margin at 17.2%.

• Significant growth in both domestic and overseas sales, with domestic up 34.9% and overseas up 19.4% year-over-year.

• The company maintained strong liquidity, no outstanding bank loans, and continued to expand production capacity with new plant operations.

• Orders and sales rebounded significantly, driven by market recovery and improved cost-effectiveness.

Financial highlights

• Gross profit rose 53.3% year-over-year to RMB634.9 million; net profit increased 53.7% to RMB340.0 million.

• Operating profit surged 60.8% year-over-year to RMB456.3 million.

• Basic earnings per share was RMB0.90, up 55.2% year-over-year.

• Interim dividend declared: HK$0.45 per share, the highest since listing.

• Net cash flows from operating activities dropped sharply to RMB9.5 million from RMB277.7 million in the prior year.

Outlook and guidance

• Continued demand growth for CNC machine tools is expected, supported by government policies and industrial upgrades.

• The company aims to maintain its leading position through cost efficiency, product innovation, and expanded capacity.

• New plant in Pinghu and expanded machining capacity in Anhui to support medium- and long-term growth.