Precision Tsugami (China) Corporation (1651) H1 2027 earnings summary

Executive summary

• 1H FY2027 revenue rose 20.9% YoY to RMB3,018.973m and net profit increased 32.2% to RMB663.740m; gross profit and net profit reached interim records.

• Growth reflected stronger domestic demand, overseas recovery and rapid expansion in emerging-industry orders; improved product mix and cost control supported profit growth.

Financial highlights

• Gross profit increased 26.6% to RMB1,092.233m; operating profit rose 35.3% to RMB917.654m and profit before tax was RMB982.188m.

• Gross margin expanded 1.6 percentage points to 36.2% and net margin increased 1.9 points to 22.0%; basic EPS rose to RMB1.82 from RMB1.36.

• Other income and gains increased to RMB67.913m, mainly due to higher government grants including software tax rebates.

• Selling and distribution expenses fell 0.8% to RMB106.134m and administrative expenses fell 11.9% to RMB68.445m.

• Finance costs declined to RMB0.024m from RMB2.195m; income tax expense increased 58.2% to RMB318.448m alongside higher revenue and pretax profit.

Outlook and guidance

• FY2027 H2 outlook anticipates continued China equipment-renewal demand, with tariff pressure and geopolitical disruption contributing to volatility.

• AI liquid-cooling demand is expected to contribute through FY2027 and FY2028; automatic lathes have application know-how and delivery experience.

• 3C demand may benefit from new smartphone processes and materials, foldable screens, complex hinge components and equipment renewal.

• Automotive opportunities include e-drive systems and post-machining of integrated die-cast chassis components; production-line flexibility upgrades also support replacement demand.

• Longer-term opportunities include machining for automated-driving controllers, AI computing hardware and humanoid robots moving toward mass production.