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

Executive summary

• Revenue for the six months ended 30 September 2024 rose 32.4% year-over-year to RMB1,978.1 million, driven by a cyclical recovery in the CNC machine tools market and improved customer demand.

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

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

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

• Interim dividend of HK$0.45 per share declared, up from HK$0.40 last year.

Financial highlights

• Revenue: RMB1,978.1 million, up 32.4% year-over-year.

• Gross profit: RMB634.9 million, up 53.3% year-over-year; gross margin improved by 4.4 percentage points to 32.1%.

• Net profit: RMB340.0 million, up 53.7% year-over-year; net margin increased by 2.4 percentage points to 17.2%.

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

• Cash and bank balances: RMB948.5 million as of 30 September 2024.

Outlook and guidance

• The company expects continued demand growth for CNC machine tools, supported by government policies and industrial upgrades.

• Market competition is expected to intensify, but 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.