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Impro Precision Industries Limited (HK:1286)
:1286

Impro Precision Industries Limited (1286) AI Stock Analysis

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HK

Impro Precision Industries Limited

(Frankfurt:1286)

Rating:80Outperform
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 (1286) vs. iShares MSCI Hong Kong ETF (EWH)

Impro Precision Industries Limited Business Overview & Revenue Model

Company DescriptionImpro 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 MoneyImpro 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.69B4.60B4.35B3.78B2.92B
Gross Profit1.27B1.18B1.40B1.13B875.46M
EBITDA1.18B1.14B1.17B913.93M371.69M
Net Income644.30M585.09M581.95M382.78M-148.19M
Balance Sheet
Total Assets8.17B8.30B7.76B7.04B5.67B
Cash, Cash Equivalents and Short-Term Investments601.75M630.85M483.29M578.96M601.99M
Total Debt2.20B2.26B2.21B1.54B853.75M
Total Liabilities3.43B3.40B3.24B2.52B1.58B
Stockholders Equity4.72B4.88B4.38B4.36B4.01B
Cash Flow
Free Cash Flow534.22M570.04M71.33M-635.76M317.07M
Operating Cash Flow1.15B1.28B782.29M401.09M864.57M
Investing Cash Flow-690.00M-772.89M-1.22B-1.03B-574.52M
Financing Cash Flow-467.17M-359.69M379.45M607.11M-339.12M

Impro Precision Industries Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.23
Price Trends
50DMA
2.62
Positive
100DMA
2.61
Positive
200DMA
2.31
Positive
Market Momentum
MACD
0.14
Negative
RSI
74.27
Negative
STOCH
85.63
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€5.62B8.7313.24%5.35%1.79%10.02%
78
Outperform
HK$7.73B9.2515.68%1.55%-7.43%-15.09%
69
Neutral
HK$7.58B8.6311.29%8.02%28.57%
68
Neutral
HK$4.42B9.465.40%3.19%8.61%38.69%
64
Neutral
€4.54B12.9818.09%3.67%-1.93%-7.82%
58
Neutral
HK$13.89B4.44-3.01%7.32%3.67%-54.16%
56
Neutral
HK$6.08B1,100.000.20%12.45%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1286
Impro Precision Industries Limited
3.23
1.33
70.36%
HK:2285
Chervon Holdings Limited
15.28
-1.68
-9.91%
HK:2155
Morimatsu International Holdings Company Limited
6.80
1.83
36.82%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.20
0.66
121.81%
HK:0558
L.K. Technology Holdings Limited
3.31
0.25
8.10%
HK:0187
Beijing Jingcheng Machinery Electric Co Ltd Class H
4.67
2.71
138.27%

Impro Precision Industries Limited Corporate Events

Impro Precision Industries Secures Shareholder Approval for Key Resolutions
May 8, 2025

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
Apr 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025