Precision Tsugami (China) Corporation Limited (Tsugami China, 01651) reported record financial results for the year ended 31 March 2026, underpinned by robust demand from new-energy vehicles (NEVs), high-end equipment, AI and 5G sectors.
Key Financials • Revenue rose 21.6% year on year (YoY) to RMB5.18 billion, driven by higher sales of precision lathes (+19.5% to RMB4.33 billion) and a 58.3% surge in precision machining-centre revenue to RMB0.39 billion. • Gross profit expanded 28.2% to RMB1.81 billion; gross margin improved 1.8 ppt to 34.9%, reflecting product-mix optimisation and cost-efficiency gains. • Net profit attributable to shareholders jumped 39.9% to RMB1.09 billion, lifting net margin to 21.1% (+2.7 ppt). • Basic EPS increased to RMB2.98 (FY25: RMB2.08); diluted EPS was RMB2.97.
Operational Metrics • Average inventory turnover shortened to 98 days (-16 days YoY), while trade-and-notes receivable days lengthened to 124 days (+15 days). • Cash and bank balances reached RMB1.49 billion (FY25: RMB1.08 billion); net cash from operations climbed to RMB1.06 billion (FY25: RMB0.35 billion). • Capital expenditure totalled RMB23.20 million, mainly for plant construction and equipment upgrades. • Balance-sheet strength remained solid with net current assets of RMB3.16 billion and a low gearing ratio of 0.08%.
Dividends and Shareholder Returns • Final dividend proposed: HK$0.90 per share, subject to AGM approval (payment date: 16 September 2026). Combined with the HK$0.60 interim dividend already paid, FY26 cash payout totals HK$1.50 per share. • The company repurchased 9.88 million shares during FY26 for HK$250 million and a further 0.08 million shares in April 2026. Treasury shares stood at RMB270.13 million at year-end.
Strategic Developments • To meet rising demand, Tsugami China acquired 34 mu of land in Pinghu Economic Development District for two new assembly plants, targeting an additional 3,000 CNC machine tools of annual capacity by end-2027. • R&D spending reached RMB51.31 million, supporting product upgrades for NEV powertrain, AI cooling, semiconductor and robotics applications.
Outlook Management anticipates continued growth into FY27, citing national initiatives in industrial upgrading and sustained demand from emerging sectors. Order intake has set monthly records since H2 FY26, with current facilities running at full capacity ahead of the planned expansion.
Key Dates • AGM: 17 August 2026 (register closure 12–17 August) • Final dividend record date: 26 August 2026; payment: 16 September 2026
Tsugami China believes its cost competitiveness, expanded capacity and focus on high-precision CNC solutions position the group to capitalise on China’s expanding machine-tool market in the coming fiscal year.
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