Impro Precision Industries Limited (1286) AI Stock Analysis

• Market Cap: €5.62B
• Dividend Yield: 5.35%
• Average Volume (3M): 958.39K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.28
• Revenue Growth: 1.79%
• EPS Growth: 10.02%
• Country: HK
• Employees: 7,778
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 0.18
• Shares Outstanding: 1,887,285,600
• 10 Day Avg. Volume: 1,191,565
• 30 Day Avg. Volume: 958,388
• PEG Ratio: 0.13
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$3.50 ▲(8.36%Upside)

Impro Precision Industries Limited has a strong financial foundation and attractive valuation, which are the most significant factors driving the stock score. Despite positive technical momentum, overbought indicators suggest caution. The company's robust dividend yield and low P/E ratio further enhance its attractiveness.

Impro Precision Industries Limited Business Overview & Revenue Model

Company Description

Impro Precision Industries Limited (1286) is a global leader in the precision manufacturing industry, specializing in the production of high-quality investment castings, sand castings, and precision machining components. The company serves a diverse array of sectors including aerospace, automotive, medical, and energy, providing critical components that meet stringent quality standards.

How the Company Makes Money

Impro Precision Industries Limited generates revenue through the manufacturing and sale of precision-engineered products. The company's primary revenue streams include investment castings, sand castings, and precision machining services. These products and services cater to a global clientele across various industries such as aerospace, automotive, medical, and energy. Impro Precision benefits from long-term contracts and partnerships with major industry players, which help stabilize its income. Additionally, the company's focus on high-quality standards and technological innovation allows it to maintain a competitive edge and attract premium pricing for its products.

Impro Precision Industries Limited Financial Statement Overview

Summary

Impro Precision Industries Limited presents a strong financial profile with significant revenue and profit growth, stable margins, and sound cash flow management. The company is well-positioned with a solid foundation and growth trajectory, though attention to managing debt levels and capital expenditure is crucial.

Income Statement

Impro Precision Industries Limited shows a strong income statement performance with a consistent revenue growth trend, rising from HKD 2.92 billion in 2020 to HKD 4.69 billion in 2024. The company has maintained a solid Gross Profit Margin, with the most recent year at approximately 27.08%. Net Profit Margin improved to 13.74% in 2024, indicating enhanced profitability. EBIT and EBITDA margins are commendable, reflecting efficient operational management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet shows a stable financial position with an improving equity base, reaching HKD 4.72 billion in 2024. The Debt-to-Equity Ratio has been maintained at a moderate level, indicating controlled leverage; as of 2024, it stands at approximately 0.47. The Equity Ratio is healthy at 57.78%, reflecting a strong equity position relative to total assets. However, the increasing debt levels over the years could pose a potential risk if not managed carefully.

Cash Flow

Impro Precision Industries Limited demonstrates strong cash flow generation capabilities. Free Cash Flow grew positively in 2024, reversing the negative trend in previous years. The Operating Cash Flow to Net Income Ratio is robust, indicating effective cash conversion from earnings. While Free Cash Flow to Net Income Ratio signifies good cash management, consistent capital expenditures need careful monitoring to avoid cash strain.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.69B	4.60B	4.35B	3.78B	2.92B
Gross Profit	1.27B	1.18B	1.40B	1.13B	875.46M
EBITDA	1.18B	1.14B	1.17B	913.93M	371.69M
Net Income	644.30M	585.09M	581.95M	382.78M	-148.19M
Balance Sheet
Total Assets	8.17B	8.30B	7.76B	7.04B	5.67B
Cash, Cash Equivalents and Short-Term Investments	601.75M	630.85M	483.29M	578.96M	601.99M
Total Debt	2.20B	2.26B	2.21B	1.54B	853.75M
Total Liabilities	3.43B	3.40B	3.24B	2.52B	1.58B
Stockholders Equity	4.72B	4.88B	4.38B	4.36B	4.01B
Cash Flow
Free Cash Flow	534.22M	570.04M	71.33M	-635.76M	317.07M
Operating Cash Flow	1.15B	1.28B	782.29M	401.09M	864.57M
Investing Cash Flow	-690.00M	-772.89M	-1.22B	-1.03B	-574.52M
Financing Cash Flow	-467.17M	-359.69M	379.45M	607.11M	-339.12M

Impro Precision Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1286, the sentiment is Positive. The current price of 3.23 is above the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.62, and above the 200-day MA of 2.31, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 74.27 is Negative, neither overbought nor oversold. The STOCH value of 85.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1286.

Impro Precision Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1286	80 Outperform	€5.62B	8.73	13.24%	5.35%	1.79%	10.02%
2155	78 Outperform	HK$7.73B	9.25	15.68%	1.55%	-7.43%	-15.09%
2285	69 Neutral	HK$7.58B	8.63	11.29%	8.02%	28.57%	―
2722	68 Neutral	HK$4.42B	9.46	5.40%	3.19%	8.61%	38.69%
0558	64 Neutral	€4.54B	12.98	18.09%	3.67%	-1.93%	-7.82%
Sector *	58 Neutral	HK$13.89B	4.44	-3.01%	7.32%	3.67%	-54.16%
0187	56 Neutral	HK$6.08B	1,100.00	0.20%	―	12.45%	―

Impro Precision Industries Limited Corporate Events

Impro Precision Industries Secures Shareholder Approval for Key Resolutions

Impro Precision Industries Limited announced that all ordinary resolutions were approved at its Annual General Meeting held on May 8, 2025. The resolutions included the adoption of audited financial statements, re-election of directors, and granting mandates to the board for share repurchase and issuance. This approval reflects strong shareholder support and positions the company to continue its strategic initiatives and governance practices.

Impro Precision Industries Sets Agenda for 2025 AGM

Impro Precision Industries Limited has announced its upcoming Annual General Meeting (AGM) to be held on May 8, 2025, in Wuxi City, Jiangsu Province, China. The meeting will cover several key agenda items, including the adoption of the audited financial statements for the year ended December 31, 2024, re-election of directors, re-appointment of auditors, and authorization for share repurchase. These resolutions, particularly the share repurchase authorization, could impact the company’s stock market activities and provide strategic flexibility in managing its capital structure.