Precision Tsugami (China) Corporation Limited FY2026 Annual Results: Record-Breaking Growth, Dividend Hike, and Key Strategic Developments
Key Financial and Strategic Highlights
- Record Revenue and Profit: Precision Tsugami (China) reported a sales revenue of approximately RMB5.18 billion for FY2026, a 21.6% year-on-year increase. Net profit surged 39.9% to RMB1.09 billion, surpassing the RMB1 billion milestone for the first time in company history. The gross profit margin improved to 34.9% (up 1.8 percentage points), while the net profit margin increased to 21.1% (up 2.7 percentage points).
- Earnings Per Share: Basic earnings per share rose to RMB2.98 (vs. RMB2.08 last year), reflecting robust growth and enhanced shareholder value.
- Dividend Surprise: The Board recommends a final dividend of HK\$0.90 per share (full-year: HK\$1.5 per share), marking the highest dividend payout since the company’s listing and significantly exceeding last year’s dividend. This signals strong confidence in cash flow and future prospects.
- Operational Excellence: The company maintained profitability above industry averages despite fierce competition, thanks to lean operations, cost controls, and economies of scale. Notably, the growth of net profit outpaced revenue growth, underlining exceptional operational efficiency.
- Strategic Positioning: Precision Tsugami (China) captured market opportunities amid structural changes in the CNC machine tools industry, leveraging technological innovation and management refinement. The company expanded its market share, particularly in automotive and 3C (computer, communication, and consumer electronics) sectors.
Shareholder-Related and Potentially Price-Sensitive Developments
- Share Buy-Back and Capital Changes: The company repurchased 9.88 million shares during FY2026 and has already started a further repurchase (80,000 shares after year-end), with ongoing assessments to continue buy-backs. 4.88 million shares were cancelled, supporting capital efficiency and shareholder returns. The board lot size will be reduced from 1,000 to 500 shares effective 21 July 2026, likely to improve trading liquidity and attract a broader base of investors.
- Planned Amendments to Corporate Constitution: The company will propose amendments to its Memorandum and Articles of Association at the upcoming AGM (17 August 2026) to comply with new regulatory requirements, enable paperless listing, and implement an uncertificated securities regime. These changes may modernize the company’s capital market infrastructure and are subject to shareholder approval.
- Share Award Scheme: The company has an active Share Award Scheme, with up to 6% of issued shares (22.85 million shares) available for award. As of the report date, 4.9 million shares have been granted, mainly to directors and key personnel, to incentivize performance and retain talent. Details of vesting schedules, limits per participant, and fair value calculation are disclosed.
- Zero Debt, Strong Balance Sheet: As of 31 March 2026, the company reported zero outstanding bank loans, a gearing ratio of only 0.08%, and distributable reserves of RMB968.56 million. This financial strength underpins the generous dividend and potential for further shareholder returns.
- Risk Management and Internal Control: The company confirmed no significant changes or weaknesses in its risk management or internal controls. The Board considers these systems adequate and effective, crucial for governance-conscious investors.
- Regulatory Compliance, Corporate Governance, and Shareholder Rights: The company reported full compliance with the Listing Rules, robust corporate governance, and transparent mechanisms for shareholders to call meetings, propose resolutions, and communicate with the Board. No material legal or regulatory uncertainties were identified, except for the usual macroeconomic and geopolitical risks.
- Related Party Transactions and Auditor Confirmation: All continuing connected transactions (notably with parent company Tsugami Japan, which owns 65.89% of shares) were reviewed and confirmed by both the audit committee and external auditor (Ernst & Young) to be fair, on normal commercial terms, and within approved caps. No issues were raised by the auditor, which is an important assurance for minority shareholders.
- Leadership and Talent: The company’s executive and board team saw no significant changes, with all independent directors confirming their independence. The company secretary and management team have fulfilled all regulatory training and disclosure requirements.
- ESG and Stakeholder Engagement: The company maintains comprehensive employee benefits, safe working conditions (no fatalities or strikes), ethical supplier relationships, and active customer feedback mechanisms. The separate ESG report will provide further details.
What Investors Should Watch For
- Dividend Record and Share Buy-Back: The record-high dividend and active share buy-back policy may boost investor sentiment and support the share price.
- Capital Structure Changes: Reduction in board lot size and ongoing share cancellations could enhance liquidity and per-share metrics.
- Strategic Reforms: Adoption of the New M&A and paperless trading regime may position the company for future growth and regulatory alignment.
- Continued Strong Performance: With no debt, robust order growth, and expanding margins, the company appears well-placed to withstand macroeconomic volatility and maintain leadership in China’s CNC machine tools market.
- Risks: As always, investors should be mindful of global economic uncertainties, currency fluctuations, and evolving regulatory landscapes.
津上精密機床（中國）有限公司2026財年年報重點：業績創新高、加碼派息及重要策略動向
主要財務及策略重點
- 收入及利潤齊創新高： 2026財年收入約為人民幣51.84億元，按年增長21.6%；純利大升39.9%至人民幣10.94億元，首次突破10億元大關。毛利率升至34.9%（+1.8個百分點），純利率升至21.1%（+2.7個百分點）。
- 每股盈利： 基本每股盈利達人民幣2.98元（去年2.08元），股東回報顯著提升。
- 派息驚喜： 董事會建議派末期息每股0.90港元（全年合共1.5港元），為上市以來最高，遠超去年，反映現金流充裕及前景樂觀。
- 營運效率領先同業： 公司持續實行精益營運、成本控制及規模經濟，盈利能力大幅優於行業，淨利潤增速遠超收入，體現卓越管理水平。
- 策略佈局推動增長： 把握CNC機床行業結構性機遇，憑創新及精細管理持續擴大市場份額，汽車及3C（電腦、通訊、消費電子）等下游業務訂單穩步上升。
股東需注意的重要及可能影響股價事項
- 股份回購及資本變動： 年內回購9,880,000股，年結後再回購8萬股，並已註銷4,879,000股，提升每股回報。將於2026年7月21日將每手股數由1,000股降至500股，有望提升流動性及吸引更多投資者。
- 擬修訂公司章程： 2026年8月17日股東大會將審議修訂章程，配合新監管、推動無紙化及無證券制，提升資本市場效率，須股東通過。
- 股份獎勵計劃： 已預留6%（2,284.8萬股）作激勵，目前已授出489.96萬股予董事及骨幹成員，強化激勵及留才。
- 零負債、資本穩健： 集團無銀行貸款，槓桿比率僅0.08%，可分派儲備達9.69億元，支撐高派息及潛在回購。
- 風險及內控： 內控及風險管理無重大變動或薄弱點，董事會認為足夠有效。
- 合規及公司管治： 集團全面符合法規及上市規則，維持高標準公司管治，設有透明的股東權益及溝通渠道。
- 關連交易及審計確認： 所有持續關連交易（如與日本母公司津上）已獲審核及核數師確認公平、依約執行，無超額情況。
- 管理層及人才： 董事局及管理層穩定，獨立董事全部確認獨立，秘書及高層符合法規要求。
- ESG與持份者關係： 員工待遇完善，工作安全（無工傷/罷工），供應及客戶關係良好，重視客戶反饋。ESG報告另行披露細節。
投資者需特別關注事項
- 歷來最高派息及持續回購： 高派息及股份回購有望提振股價和投資者信心。
- 資本架構優化： 降低每手股數及股份註銷有利提升流動性及每股指標。
- 策略改革： 修訂章程及無紙化新制可提升未來增長及監管適應力。
- 持續強勁業績： 零負債、訂單增長、毛利提升，應對宏觀波動及行業領導地位穩固。
- 潛在風險： 投資者仍需留意全球經濟、匯率及監管變化帶來的不確定性。
