Precision Tsugami (China) Corporation Limited Issues Positive Profit Alert for FY2026

Key Highlights of the Report

• Significant Profit Growth: Precision Tsugami (China) Corporation Limited expects to report a profit attributable to its owners of approximately RMB 1,094 million for the financial year ended 31 March 2026. This represents a robust increase of about 40% compared to the audited profit of RMB 782 million for the year ended 31 March 2025.
• Drivers of Growth: The company’s strong financial performance is attributed to a continuous improvement in China’s economic outlook, as well as a sustained increase in equipment demand from the domestic manufacturing industry. Notably, rising capital expenditures in the automotive, 3C (computer, communication, and consumer electronics), pneumatic, and hydraulic sectors have contributed to this growth.
• Emerging Sectors: The rapid development of new sectors such as AI liquid cooling and semiconductors has significantly boosted demand for high-precision, automated, and multi-function machine tools. This surge in demand has been a key growth driver for the company.
• Operational Efficiency: The company has implemented successful cost reduction and efficiency improvement initiatives involving all employees. These efforts have notably strengthened the company’s profitability and operational effectiveness.
• Industry Cyclicality: The Board points out that the machine tool industry is subject to cyclical changes, and the current level of profit growth is in line with management’s expectations.

Important Information for Shareholders

• Preliminary Nature of Results: The profit figures provided are based on preliminary assessments of unaudited consolidated management accounts for FY2026. These numbers are subject to final review and audit.
• Disclosure Timeline: The company expects to publish its full annual results announcement for the year ended 31 March 2026 before the end of June 2026.
• Potential Share Price Impact: The anticipated 40% surge in profit is a major positive surprise and could be a significant catalyst for share price movement. However, shareholders and potential investors are cautioned that the information is unaudited and preliminary, and they should exercise caution when trading the company’s securities.
• Regulatory Compliance: The company has stated its commitment to make further announcements as necessary in compliance with the Listing Rules and applicable laws.

Board and Management Update

The company is led by Dr. Wang Xiaokun, who serves as Chairman, Chief Executive Officer, and Executive Director. The Board consists of a mix of executive, non-executive, and independent non-executive directors, reflecting strong governance and oversight.

Conclusion

Precision Tsugami (China) Corporation Limited’s positive profit alert signals exceptional operational performance and a strong financial outlook. The combination of macroeconomic tailwinds, sectoral growth, and internal efficiency measures underpins the impressive increase in profitability. Nevertheless, investors should closely monitor upcoming announcements for the final audited results and remain mindful of the cyclical nature of the industry.

Disclaimer: The information provided herein is based on the company’s announcement and is for informational purposes only. It is not intended as investment advice. Investors should review the company’s official disclosures and consult with professional advisors before making any investment decisions. The financial data is preliminary and unaudited, and actual results may differ.

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