TSUGAMI CHINA (01651) surged over 6% in early trading, with gains moderating to 4.86% at the time of writing, reaching HK$31.5 and recording a turnover of HK$279.269 million.
The company reported interim results, showing total group revenue of RMB 2.497 billion for the first half, a year-on-year increase of approximately 26.2%. Gross profit rose about 35.1% to RMB 863 million, with overall gross margin improving by 2.5 percentage points from 32.1% to 34.6% year-on-year. Net profit grew 47.7% to RMB 502 million, and an interim dividend of HK$0.60 per ordinary share was proposed.
Industrial Securities highlighted that the company's AI liquid cooling segment performed strongly in the first half, generating sales of around RMB 120 million, accounting for 5.2% of domestic sales and serving as a key growth driver. Straight-through liquid cooling connectors represent 80% of total market demand, and the company's automatic lathes provide a competitive edge in processing these components. The production process for liquid cooling connectors has been finalized, and the industry has entered the batch procurement phase.
From January to September 2025, TSUGAMI CHINA secured equipment orders from dozens of clients, representing about 5% of domestic order value. The sector is projected to become a major growth driver in the second half of fiscal 2026, with further acceleration expected in fiscal 2027.
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