TSUGAMI CHINA (01651) shares surged more than 6% during the early trading session on Monday, with the stock last up 5.79% at HK$53.0, recording a turnover of HK$33.81 million. This sharp uptick follows an announcement from the Shanghai Stock Exchange, which confirmed that the precision machine tool manufacturer has been added to the Stock Connect program, with the inclusion officially taking effect from September 7. Market watchers view this development as a significant catalyst, as the company's admission to the connect scheme is expected to dramatically improve trading liquidity and broaden its investor base.
In response to the news, analysts at CICC have turned increasingly optimistic on TSUGAMI CHINA's prospects. The brokerage lifted its price target by a substantial 81% to HK$70, while retaining a "Outperform Industry" rating. The revised valuation reflects both the anticipated liquidity enhancements from the Stock Connect inclusion and the company's strong positioning in the mid-to-high-end CNC machine tool segment, a niche where it has carved out a competitive edge against domestic and international rivals. CICC believes that improved market accessibility could unlock a re-rating of the stock as a broader range of mainland investors gain exposure to the company.
Adding to the positive sentiment, the brokerage highlighted that the upcoming launch of new Apple products is poised to drive order momentum in the 3C (computer, communication, and consumer electronics) sector. Notably, TSUGAMI CHINA has been a key supplier for 3C applications, with its machines playing a critical role in manufacturing components such as foldable screen hinges, smartphone camera lens rings, and metal connectors. Since April 2026, the company has seen its 3C orders enter a recovery phase, signaling a rebound in demand from consumer electronics manufacturers. With Apple slated to unveil its first foldable iPhone Ultra and other new devices on September 10, industry observers expect these product launches to generate heightened attention for consumer electronics equipment makers, potentially translating into stronger order flows for TSUGAMI CHINA in the coming months.
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