Precision Tsugami (China) Corporation (1651) H2 2025 earnings summary

Executive summary

• Sales revenue reached RMB4,261.6 million for FY2025, up 36.6% year-over-year, driven by strong demand recovery in the CNC machine tools market, especially from the automotive sector.

• Gross profit rose 57.5% to RMB1,410.4 million, and net profit increased 63.0% to RMB782.4 million, with both margins improving significantly.

• Domestic sales surged 44.0% to RMB3.79 billion, while overseas sales declined 3.3%.

• Automotive sector sales grew approximately 69% year-over-year, becoming a key driver.

• Cost reduction and efficiency initiatives enabled competitive pricing and improved profitability.

Financial highlights

• Gross profit margin improved by 4.4 percentage points to 33.1%; net profit margin rose by 3.0 points to 18.4%.

• Operating profit increased 70.6% year-over-year to RMB1.07 billion, with margin up 5.0 points to 25.1%.

• Basic EPS was RMB2.08, up 65.1% year-over-year.

• Net cash flow from operating activities was RMB352.9 million, with cash and cash equivalents at RMB390.1 million at year-end.

• Selling and distribution expenses were RMB189.9 million (up 21.9%), and administrative expenses were RMB152.6 million (up 34.1%).

Outlook and guidance

• The AI liquid-cooling connector industry is expected to be a main revenue growth driver in FY2026.

• New plant in Pinghu operational since October 2024, increasing annual machine tool capacity by 3,000–4,000 units.

• Industry demand expected to remain robust in FY2026, with continued growth in automotive and high-tech sectors.

• Plans to construct additional plants to further expand capacity.

• External uncertainties from tariff wars noted, but limited impact observed so far.