Impro Precision Industries Limited (1286) AI Stock Analysis

• Market Cap: €7.57B
• Dividend Yield: 4.32%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.33
• Revenue Growth: 2.87%
• EPS Growth: 17.03%
• Country: HK
• Employees: 7,778
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 0.18
• Shares Outstanding: 1,887,285,600
• 10 Day Avg. Volume: 3,965,700
• 30 Day Avg. Volume: 2,144,150
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €4.49
• Price Target Upside: 11.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$4.50 ▲(12.22% Upside)

Impro Precision Industries Limited scores well due to its strong financial performance and reasonable valuation. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The absence of earnings call data and corporate events does not impact the score significantly.

Impro Precision Industries Limited Business Overview & Revenue Model

Company Description

Impro Precision Industries Limited develops, produces, and sells casting products and precision machining parts in the United States, Europe, the People's Republic of China, and internationally. It operates in four segments: Investment Casting, Precision Machining, Sand Casting, and Surface Treatment. The company offers passenger cars, commercial vehicles, high horsepower engines, hydraulic equipment, construction equipment, agricultural equipment, recreational boats and vehicles, aerospace, and medical components. It also offers surface treatment services, such as plating, anodizing, painting, and coating. In addition, the company manages logistic centers and warehouses, as well as provides customer maintenance services. It serves automotive, high horsepower engine, construction equipment, agricultural equipment, hydraulic equipment, aerospace, medical, energy, recreational boat and vehicles, fire and security systems, telecommunication, forestry, and the food processing industries. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Impro Precision Industries Limited generates revenue through the manufacturing and sale of precision-engineered components. The company's primary revenue streams include the production and supply of investment castings, precision machined parts, and sand castings. By catering to diverse industries such as automotive, aerospace, and medical, Impro benefits from a broad customer base. Significant partnerships with major OEMs and long-term contracts contribute to a stable and recurring revenue model. Additionally, the company's focus on high-quality and complex components allows it to command premium pricing, further enhancing its profitability.

Impro Precision Industries Limited Financial Statement Overview

Summary

Impro Precision Industries Limited shows a strong overall financial performance, with significant revenue and net profit margin growth, stable balance sheet, and robust cash flow management. The company is well-positioned, but careful management of increasing debt and capital expenditures is advised.

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: 4.01
• 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 4.01 is above the 20-day moving average (MA) of 3.42, above the 50-day MA of 3.08, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 72.03 is Negative, neither overbought nor oversold. The STOCH value of 92.23 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	74 Outperform	€7.57B	11.03	14.15%	4.32%	2.87%	17.03%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.71%	2.29%	-57.50%
L5D	―	€692.66M	16.45	18.09%	―	―	―
CE3	―	€756.16M	13.00	5.40%	―	―	―
2155	77 Outperform	HK$11.61B	13.89	15.68%	1.61%	-7.43%	-15.09%
2285	69 Neutral	HK$12.04B	13.70	11.29%	7.74%	28.57%	―
0187	56 Neutral	HK$7.49B	1,388.10	0.20%	―	12.45%	―

Impro Precision Industries Limited Corporate Events

Impro Precision Industries Announces Board and Committee Structure

Impro Precision Industries Limited has announced the composition of its board of directors and the establishment of several key committees, including the Audit, Remuneration, Nomination, and Sustainability Committees. This organizational structure is aimed at strengthening corporate governance and enhancing operational efficiency, which could positively impact the company’s strategic goals and stakeholder interests.

Impro Precision Industries Limited Releases 2025 Interim Results

Impro Precision Industries Limited announced its interim results for the first half of 2025, meeting the compliance requirements of the Hong Kong Stock Exchange. The interim report will be available on the company’s website and distributed to shareholders, reflecting the company’s ongoing commitment to transparency and regulatory adherence.

Impro Precision Industries Declares Interim Dividend for First Half of 2025

Impro Precision Industries Limited has announced an interim dividend of HKD 0.08 per share for the six months ending June 30, 2025. This announcement reflects the company’s commitment to delivering shareholder value and suggests a stable financial performance for the first half of the year. The dividend will be paid on September 10, 2025, with the ex-dividend date set for August 25, 2025. This move may enhance investor confidence and strengthen the company’s position in the market.

Impro Precision Announces Changes to Nomination Committee

Impro Precision Industries Limited has announced a change in the composition of its Nomination Committee, effective August 12, 2025. Mrs. Chow Lok Mei Ki Cindy has been appointed as a new member, replacing Mr. Lee Siu Ming. The Board believes these changes will enhance the effectiveness and diversity of the committee, thereby improving corporate governance practices.

Impro Precision Industries Schedules Board Meeting for Interim Results

Impro Precision Industries Limited has announced a board meeting scheduled for August 12, 2025, to approve the company’s unaudited interim results for the first half of 2025 and consider the declaration of an interim dividend. This meeting could impact the company’s financial positioning and provide insights into its performance, potentially affecting stakeholders’ expectations.