Core Viewpoint - The Chinese manufacturing industry is undergoing a significant transformation, driven by the rapid expansion of high-tech markets such as electric vehicles and artificial intelligence, which is enhancing the overall industry chain's prosperity, particularly benefiting high-end CNC machine tools [1] Group 1: Company Performance - Tsugami China reported record-breaking financial results for the first half of the 2026 fiscal year, achieving revenue of 2.497 billion RMB, a year-on-year increase of 26.2% [2] - The company's gross profit reached 863 million RMB, up 35.9% year-on-year, with a gross margin improvement of 2.5 percentage points to 34.6% [2] - Net profit for the period was 502 million RMB, reflecting a substantial year-on-year growth of 51.1%, resulting in a net profit margin of 20.1% [2][9] Group 2: Business Segments - The core business of precision lathes generated revenue of 2.051 billion RMB, accounting for 82.1% of total revenue, with a year-on-year growth of 19.4% [3][4] - Revenue from precision machining centers surged by 157% to 207 million RMB, increasing its contribution to total revenue from 4.1% to 8.3% [3][4] - Precision grinding machines also saw strong growth, with revenue increasing by 47.5% to 126 million RMB, representing 5.1% of total revenue [3][4] Group 3: Market Dynamics - The automotive industry remains the most significant downstream application for machine tools, accounting for 25.6% of the total market share in 2024, with Tsugami China achieving 1.03 billion RMB in revenue from this sector, a 51.6% increase year-on-year [5] - The company also reported impressive performance in the 3C industry, with sales revenue of 190 million RMB, reflecting increases of 29.7% and 28.3% year-on-year and quarter-on-quarter, respectively [6] - Revenue from emerging sectors, particularly AI liquid cooling, reached 120 million RMB, contributing significantly to overall growth with year-on-year increases of 38.6% and 49.2% [6][10] Group 4: Investment Value - Tsugami China's growth potential is bolstered by the ongoing technological advancements in the automotive sector and the rapid development of AI and robotics, which are expected to drive demand for precision components [10] - The company is actively expanding into new markets, particularly in AI liquid cooling, where it has secured numerous orders, potentially capturing 5% of the domestic market [10][11] - The planned interim dividend of 0.6 HKD per share marks the highest distribution since the company's listing, reflecting its strong growth and dividend-paying capacity, with total dividends since listing reaching 5.16 HKD per share [11]

Core Viewpoint - Tsugami Machine Tool China (01651) reported strong financial results for the six months ending September 30, 2025, with significant revenue and profit growth driven by increased demand in emerging sectors such as new energy vehicles and artificial intelligence [1] Financial Performance - Revenue reached 2.497 billion RMB, representing a year-on-year increase of 26.2% [1] - Net profit was 502 million RMB, showing a year-on-year growth of 47.7% [1] - The company declared a dividend of 0.6 HKD per share, up from 0.45 HKD in the same period last year [1] Market Demand and Product Performance - The increase in total revenue was attributed to the gradual recovery of the Chinese economy and rising demand for high-precision machine tools in manufacturing, particularly in new energy vehicles, artificial intelligence, and humanoid robots [1] - The company experienced a notable increase in orders and shipments during the review period [1] - Sales of precision lathes increased by approximately 333 million RMB, a rise of about 19.4%, making it the largest contributor to revenue [1] - Sales of precision machining centers surged by 157% compared to the same period last year [1] - Sales of precision grinding machines increased by 47.5% year-on-year [1]

Core Viewpoint - Tsugami Machine Tool China (01651) reported strong financial results for the six months ending September 30, 2025, with significant revenue and profit growth driven by increased demand in emerging sectors such as new energy vehicles and artificial intelligence [1] Financial Performance - Revenue reached 2.497 billion RMB, representing a year-on-year increase of 26.2% [1] - Net profit was 502 million RMB, showing a year-on-year growth of 47.7% [1] - The company declared a dividend of 0.6 HKD per share, up from 0.45 HKD in the same period last year [1] Market Demand and Product Performance - The increase in total revenue was primarily attributed to the gradual recovery of the Chinese economy and rising demand for high-precision machine tools in manufacturing sectors [1] - Sales of precision lathes increased by approximately 333 million RMB, a rise of about 19.4%, making it the largest contributor to revenue [1] - Sales of precision machining centers surged by 157% compared to the same period last year [1] - Sales of precision grinding machines increased by 47.5% year-on-year [1] Operational Efficiency - The company has implemented cost reduction and efficiency improvement measures, significantly enhancing the cost-performance ratio and competitiveness of its products [1]

Core Viewpoint - Tsugami Machine Tool China reported a significant increase in mid-term performance for the six months ending September 30, 2025, driven by economic recovery in China and rising demand in emerging sectors such as new energy vehicles, artificial intelligence, and humanoid robots [1] Financial Performance - Total revenue reached approximately RMB 2.497 billion, representing a year-on-year growth of 26.2% [1] - Gross profit amounted to approximately RMB 863 million, with a year-on-year increase of 35.1% [1] - Overall gross margin rose to about 34.6% [1] - Profit for the period was approximately RMB 502 million, reflecting a year-on-year growth of 47.7% [1] - The company proposed an interim dividend of HKD 0.60 per share [1] Sales Performance - Sales of precision lathes increased by 19.4% [1] - Sales of precision machining centers and precision grinding machines also experienced significant growth [1]

Core Viewpoint - Tsugami Machine Tool China (01651) reported a revenue of 2.497 billion RMB for the six months ending September 30, 2025, representing a year-on-year growth of 26.2% and a net profit of 502 million RMB, up 47.7% year-on-year, with basic earnings per share of 1.36 RMB [1] Revenue Growth Drivers - The increase in total revenue is primarily attributed to the gradual recovery of the Chinese economy, with rising demand for high-precision machine tools in emerging sectors such as new energy vehicles, artificial intelligence, and humanoid robots [1] - The company has implemented cost reduction and efficiency improvement measures, significantly enhancing the cost-performance ratio and competitiveness of its products [1] Sales Performance - The sales revenue of precision lathes increased by approximately 333 million RMB, a rise of about 19.4%, making the largest impact on the company's revenue [1] - Sales of precision machining centers surged by 157.0% compared to the same period last year [1] - Sales of precision grinding machines increased by 47.5% year-on-year [1]

Core Viewpoint - The company reported significant growth in revenue and net profit for the six months ending September 30, 2025, driven by increased demand in emerging sectors such as new energy vehicles, artificial intelligence, and humanoid robots, alongside effective cost reduction and efficiency improvement measures [1] Financial Performance - Revenue reached 2.497 billion RMB, representing a year-on-year increase of 26.2% [1] - Net profit amounted to 502 million RMB, reflecting a year-on-year growth of 47.7% [1] - Basic earnings per share were 1.36 RMB [1] Market Demand and Product Performance - The increase in total revenue was primarily attributed to the gradual recovery of the Chinese economy and heightened demand for high-precision machine tools [1] - Sales of precision lathes increased by approximately 333 million RMB, a rise of about 19.4%, making the largest impact on the company's revenue [1] - Sales of precision machining centers surged by 157.0% compared to the same period last year [1] - Sales of precision grinding machines increased by 47.5% year-on-year [1]

Core Viewpoint - The financial performance of Tsugami China serves as a significant indicator of the machine tool industry's recovery, with strong revenue growth and profitability reflecting a resurgence in demand from downstream sectors, particularly the automotive industry [1][5][7]. Financial Performance - For the fiscal year 2025, Tsugami China reported revenue of 4.262 billion RMB, a year-on-year increase of 36.6%, and a net profit growth of 63% [1][7]. - The company's gross profit rose by 57.5% to 1.41 billion RMB, with a gross margin of 33.1%, up 4.4 percentage points from the previous year [7]. Revenue Breakdown - The precision lathe business generated 3.624 billion RMB, accounting for 85.1% of total revenue, with a year-on-year increase of 36.5% [4]. - Revenue from the automotive sector surged by 69% to 1.83 billion RMB, significantly contributing to domestic revenue growth [5][8]. - Other sectors, including pneumatic, hydraulic, and 3C industries, also showed positive growth, with respective increases of 33%, 26%, and 26% [5]. Market Trends - The machine tool industry is experiencing a recovery, with increased demand noted from March and April 2024, indicating a shift towards an upward market cycle [3][8]. - Tsugami China has successfully expanded into new industries, including humanoid robotics and AI applications, which are expected to drive future growth [9][10]. Strategic Initiatives - The company has implemented cost-reduction and efficiency-enhancement measures across its operations, contributing to its competitive edge [2]. - Tsugami China plans to launch new products, such as internal thread grinding machines, to cater to the automotive industry's evolving needs [8][9]. Shareholder Returns - Tsugami China announced a final dividend of 0.5 HKD per share, an increase from the previous year's 0.4 HKD, reflecting a commitment to shareholder returns [10]. - The company has also repurchased 2.371 million shares, indicating management's confidence in future growth and efforts to stabilize market value [10].