Hong Kong Stock Market Moves: TSUGAMI CHINA (01651) Surges Nearly 4% in Late Trading, New Fiscal Year Capital Expenditure Hits Record High as Company Proactively Breaks Through Capacity Constraints

Stock News07-27

TSUGAMI CHINA (01651) experienced a nearly 4% surge in late trading, climbing 3.35% to HK$58.65 as of the time of writing, with a turnover of HK$36.9465 million.

On the news front, TSUGAMI CHINA released its full-year results for the 2026 fiscal year ending March 31 late last month. Revenue stood at approximately RMB 5.184 billion, representing a 21.6% year-on-year increase, while net profit reached RMB 1.094 billion, up 39.9% year-on-year. Data shows that for the second half of the 2026 fiscal year, TSUGAMI CHINA’s revenue was RMB 2.687 billion, a 17.6% increase compared to the same period, and a further 7.6% sequential rise from the first half, which had already set a new historical record for that period.

Haitong International released a research report stating that for the 2027 fiscal year, the company plans capital expenditure of RMB 200 million, primarily for equipment upgrades and new factory construction. Among these projects, the sixth plant at the Pinghu new factory is expected to commence operations in January 2028, projected to increase equipment assembly capacity by 3,000 units per year. The brokerage estimates this will account for 20% of the company's current production capacity. The report believes that the record-high capital expenditure indicates the company’s current production capacity is tight and urgently needs to overcome capacity bottlenecks. With the precision machine tool industry currently experiencing high prosperity and the company maintaining a solid leading position, Haitong International is optimistic about the company's long-term growth potential.

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