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

Executive summary

• Achieved record-high performance for the six months ended 30 September 2025, with revenue up 26.2% year-over-year to RMB2,496.9 million and net profit up 47.7% to RMB502.3 million.

• Strong growth driven by robust demand in the automotive components sector, which contributed 44% of total sales and grew 51.7% year-over-year.

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

• Maintained robust liquidity and no outstanding bank loans as of 30 September 2025.

• Interim dividend of HK$0.60 per share declared.

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).

• Interim dividend declared: HK$0.60 per share (2024: HK$0.45).

• Net operating cash inflow: RMB306.9 million (2024: RMB9.5 million).

Outlook and guidance

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