Shares of TSUGAMI CHINA (HKEX: 01651) have risen more than 4%. At the time of writing, the stock is up 4.14% to HK$67.9, with a turnover of HK$86.358 million.
Catalyst for the Move
Daiwa Capital Markets has issued a research report reiterating its "buy" rating on TSUGAMI CHINA and raising its target price from HK$77 to HK$80. The firm has also increased its earnings per share forecast for the fiscal years 2027 to 2028 by 4%.
Daiwa views TSUGAMI as one of the key machine tool beneficiaries from investments in AI infrastructure. The report notes that demand for AI liquid-cooled quick-disconnect couplings remains robust. Management has indicated that orders for the 2026 fiscal year have already reached approximately 1,000 units and are expected to double in the 2027 fiscal year, primarily driven by deployments related to Nvidia's GB300.
Recent Financial Performance
TSUGAMI CHINA's recently disclosed financial results for the 2026 fiscal year show revenue of RMB 5.184 billion, a year-on-year increase of 21.6%. Net profit attributable to shareholders reached RMB 1.094 billion, surging 39.9% year-on-year, with both revenue and profit setting new historical records. Notably, the profit growth rate significantly outpaced the revenue growth rate.
The company has maintained its tradition of generous dividend payouts, declaring a final dividend of HK$0.9 per share. Combined with an interim dividend of HK$0.6 per share, the total annual dividend amounts to HK$1.5 per share.
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