Shares of Tsugami China Surge Nearly 9% in Afternoon Trading on Strong Annual Profit and Entry into Optical Module Supply

Stock News07-03

Shares of TSUGAMI CHINA (01651) rose nearly 9% in afternoon trading. At the time of writing, the stock was up 7.94% to HK$72.75, with a turnover of HK$90.41 million.

The surge follows the company's announcement of its full-year results for the period ending March 2026. Revenue reached approximately RMB 5.184 billion, marking a year-on-year increase of 21.6%. Net profit rose to RMB 1.094 billion, a significant jump of 39.9% compared to the previous year. A final dividend of HK$0.9 per share was declared.

Additionally, the company has proposed a change in the board lot size for trading, reducing it from 1,000 shares to 500 shares, effective from July 21.

Analysts highlight the company's strategic expansion into the AI infrastructure supply chain as a key growth driver. It is noted that the company began securing substantial orders for AI liquid cooling connectors in 2025. In 2026, it started receiving significant orders for ROSA and TOSA components used in AI optical modules. As the precision requirements for optical modules continue to increase, the company's expertise in precision lathes provides a distinct competitive advantage, allowing it to capture greater market share in this sector. Furthermore, the growing complexity of future liquid cooling connectors is expected to drive increased demand for the company's machine tool products, positioning AI data centers as a sustained driver for future performance growth.

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