Precision Tsugami (China) Corporation (1651) H2 2026 earnings summary

Executive summary

• Sales revenue reached RMB5.18 billion for FY2026, up 21.6% year-over-year, marking a record high, with net profit increasing 39.9% to RMB1.09 billion and net margin at 21.1%.

• Gross profit rose 28.2% to RMB1.81 billion, with gross margin at 34.9%, both at record levels.

• Strategic focus on high-precision CNC machine tools for emerging industries like NEVs, AI, and semiconductors contributed to growth.

• Operational efficiency and economies of scale enabled outperformance despite price competition.

Financial highlights

• Operating profit grew 36.7% year-over-year to RMB1.46 billion, with margin up 3.1 percentage points to 28.2%.

• Basic EPS was RMB2.98, up 43.3% year-over-year.

• Net cash flow from operating activities surged to RMB1.06 billion.

• Cash and cash equivalents stood at RMB715.1 million as of 31 March 2026.

Outlook and guidance

• Plans to launch multiple new precision models in FY2027, targeting automotive, hydraulic, semiconductor, and robotics sectors.

• Capital expenditure for FY2027 set at RMB200 million, focused on equipment upgrades and new plant construction.

• Construction began on new plants in June 2026, aiming to add 3,000 units/year capacity by January 2028.

• Anticipates robust industry demand for FY2027, with opportunities in AI, NEVs, and robotics.