TSUGAMI CHINA (01651) saw its shares rise more than 10% after issuing a positive profit alert. At the time of writing, the stock was up 9.74%, trading at HK$47.32 with a turnover of HK$30.18 million.
The company announced that it expects to report an annual profit attributable to shareholders of approximately RMB 1.094 billion for the period ending in March, representing an increase of about 40% compared to the previous year.
The announcement highlighted that the strong performance was driven by the continued positive momentum of the Chinese economy and sustained growth in equipment demand from the domestic manufacturing sector. In particular, capital expenditure in the automotive, 3C, and pneumatic and hydraulic industries has been increasing.
Rapid development in emerging fields such as AI liquid cooling and semiconductors has also boosted demand for high-precision, automated, and multi-functional machine tools, which have been key drivers of the company's earnings growth.
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