Core Viewpoint - Cathay Securities has given a "Buy" rating to Tsunam Machine Tool China (01651), predicting significant revenue and profit growth from FY2026 to FY2028, driven by strong product capabilities and customer channels in the machine tool industry [1] Group 1: Financial Performance - For the first half of FY2026, the company achieved a revenue of approximately 2.497 billion yuan, representing a year-on-year growth of 26.2% [1] - The net profit attributable to shareholders was 502 million yuan, with a year-on-year increase of 47.7% [1] - The gross margin was 34.6%, up by 2.5 percentage points, while the net profit margin reached 20.1%, an increase of 2.9 percentage points [1] Group 2: Market Opportunities - The AI liquid cooling sector is entering a phase of bulk equipment procurement, with the company having a competitive edge in processing rapid liquid cooling connectors [2] - From January to September 2025, the company signed equipment orders with dozens of clients, accounting for about 5% of domestic order value [2] Group 3: Strategic Developments - The company is actively expanding into new fields, particularly in humanoid robotics, driven by the growing demand for small precision components due to advancements in autonomous driving and AI applications [3] - Cost reduction and efficiency improvement measures have enhanced the product's cost-effectiveness and market competitiveness, with several devices successfully applied in processing key components for humanoid robots [3] - In the same period (January to September 2025), the company secured orders for various equipment types, including automatic lathes and external cylindrical grinding machines [3]