Precision Tsugami (China) Corporation (1651) H1 2026 earnings summary

Executive summary

• Achieved record-high interim sales revenue of RMB2,496.9 million for April–September 2025, up 26.2% year-over-year, with net profit up 47.7% to RMB502.3 million and gross/net profit margins reaching historical highs.

• Strong growth driven by robust demand in the automotive components sector, which contributed 44% of total sales and grew 51.7% year-over-year; 3C and Al liquid cooling sectors also saw notable growth.

• Maintained robust liquidity, no outstanding bank loans, and declared an interim dividend of HK$0.60 per share, the highest since listing.

• Cost reduction and efficiency initiatives improved gross and net profit margins by 2.5 and 2.9 percentage points, respectively.

• Domestic sales surged 39.2% year-over-year to RMB2.35 billion, while overseas sales declined 48.0% to RMB150 million.

Financial highlights

• Revenue: RMB2,496.9 million (+26.2% YoY); gross profit: RMB862.96 million (+35.9% YoY); gross margin: 34.6% (+2.5ppt YoY).

• Net profit: RMB502.3 million (+47.7% YoY); net profit margin: 20.1% (+2.9ppt YoY).

• Basic EPS: RMB1.36 (+51.1% YoY).

• Operating profit grew 48.7% YoY to RMB678 million, with margin up 4.1 percentage points to 27.2%.

• Net operating cash inflow: RMB306.9 million (vs. RMB9.5 million last year).

Outlook and guidance

• Demand for CNC machine tools in China remains strong, with continued growth expected in manufacturing, especially in 3C, AI server liquid cooling, and robotics sectors.

• Automotive sector may enter an adjustment phase, but new technology sectors are expected to drive future growth.

• Confident in achieving best annual performance since establishment.

• The company aims to further increase market share and shareholder returns.