Impro Precision Industries (1286) investor relations material

Executive summary

• Revenue rose 2.0% year-over-year to HK$2,449.9 million for 1H/2025, with profit attributable to shareholders up 13.7% to HK$346.3 million and adjusted profit up 11.6% to HK$359.6 million; strong growth in high horsepower engine (+48.3%) and medical (+50.6%) end-markets offset declines in automotive, energy, and aerospace.

• Gross profit increased 7.4% to HK$681.5 million, with gross margin improving to 27.8% from 26.4%.

• Net cash from operating activities increased 11.5% to HK$555.3 million, supporting a stable interim dividend of HK$0.08 per share (total payout HK$151.0 million).

• Operational resilience demonstrated amid global trade tensions, with ongoing investments in Mexico campus expansion and global footprint strategies.

Financial highlights

• Adjusted EBITDA rose 3.0% year-over-year to HK$715.3 million, with margin at 29.2%.

• Adjusted basic EPS increased 11.7% to 19.10 HK cents; basic EPS up 13.8% to 18.35 HK cents.

• Cash and cash equivalents at June 30, 2025, stood at HK$655.2 million, up from HK$447.4 million a year earlier.

• Market capitalization surged 51.3% to HK$5,567.5 million as of June 30, 2025.

• Free cash inflow from operations declined 25.5% to HK$116.6 million.

Outlook and guidance

• Full-year 2025 sales growth forecast maintained at mid- to high single digits, with acceleration expected in 2H/2025.

• High horsepower engine and medical end-markets expected to drive growth in H2 2025; automotive segment to remain under pressure.

• Aerospace and energy end-markets anticipated to rebound; medical market to maintain strong momentum.

• Capital expenditure in Mexico to remain high, with HK$600 million budgeted for 2025 to support capacity expansion.

• Ample liquidity with ~HK$2.12 billion undrawn banking facilities to support ongoing strategies.