Precision Tsugami (China) Corp. Ltd. (1651) AI Stock Analysis

• Market Cap: HK$11.94B
• Dividend Yield: 2.66%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.48
• Revenue Growth: 35.16%
• EPS Growth: 62.30%
• Country: HK
• Employees: 2,240
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.26
• Shares Outstanding: 375,675,000
• 10 Day Avg. Volume: 1,686,840
• 30 Day Avg. Volume: 1,731,001
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$41.00 ▲(14.85% Upside)

Precision Tsugami (China) Corp. Ltd. scores highly due to its strong financial performance, characterized by robust revenue growth and profitability, and a solid balance sheet. The technical analysis supports a positive outlook with bullish momentum. The valuation is reasonable, providing a fair investment opportunity with a decent dividend yield.

Precision Tsugami (China) Corp. Ltd. Business Overview & Revenue Model

Company Description

Precision Tsugami (China) Corporation Limited, an investment holding company, manufactures and sells computer numerical control machine tools primarily in Mainland China and Taiwan. The company offers precision turret machines, precision automatic lathes, precision machine centers, precision grinding machines, precision thread and form rolling machines, and other components under the TSUGAMI brand name. Its products are used in various industries, such as automobile parts and components, mobile phones and communication facilities, automation, medical instruments, and construction machinery. The company also exports its products to Japan, South Korea, Europe, the United States, and internationally. The company was founded in 2003 and is based in Pinghu, China. Precision Tsugami (China) Corporation Limited is a subsidiary of Tsugami Corporation.

How the Company Makes Money

Precision Tsugami (China) Corp. Ltd. generates revenue primarily through the sale of its precision machining equipment and related services. Key revenue streams include the direct sale of CNC lathes and machining centers, as well as after-sales services such as maintenance, parts, and technical support. The company may also benefit from long-term contracts with major clients in various industries, which provide a steady income stream. Additionally, partnerships with distributors and suppliers enhance its market reach and can contribute to increased sales volumes. The commitment to research and development ensures that the company remains competitive, fostering innovation that can lead to new product offerings and additional revenue opportunities.

Precision Tsugami (China) Corp. Ltd. Financial Statement Overview

Summary

Precision Tsugami (China) Corp. Ltd. demonstrates strong financial performance with impressive revenue growth, high profitability, and a solid balance sheet with minimal leverage. The company effectively generates cash, although there is room for improvement in operating cash flow management.

Income Statement

Precision Tsugami (China) Corp. Ltd. demonstrates strong financial performance with impressive revenue growth of 18.27% in the latest year, following a decline in the previous year. The company maintains robust profitability metrics, with a gross profit margin of 33.10% and a net profit margin of 18.36%. The EBIT and EBITDA margins are also strong at 26.69% and 28.12%, respectively, indicating efficient operations and cost management.

Balance Sheet

The company's balance sheet is exceptionally strong, characterized by a very low debt-to-equity ratio of 0.00075, indicating minimal leverage and financial risk. The return on equity is impressive at 24.96%, reflecting efficient use of shareholder funds. The equity ratio stands at 73.66%, underscoring a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow performance is solid, with a significant free cash flow growth rate of 76.42% in the latest year. The operating cash flow to net income ratio is 0.36, and the free cash flow to net income ratio is 0.87, indicating healthy cash generation relative to earnings. However, the operating cash flow has decreased compared to the previous year, suggesting potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.60B	4.26B	3.12B	4.05B	4.42B	3.12B
Gross Profit	1.12B	1.41B	895.54M	1.04B	1.17B	765.31M
EBITDA	850.17M	1.20B	762.46M	840.03M	967.44M	587.07M
Net Income	598.75M	782.42M	479.97M	579.19M	667.40M	391.95M
Balance Sheet
Total Assets	3.75B	4.25B	3.63B	3.51B	3.51B	2.71B
Cash, Cash Equivalents and Short-Term Investments	948.52M	1.08B	1.11B	977.57M	570.93M	430.12M
Total Debt	3.68M	2.34M	4.09M	3.16M	24.84M	3.29M
Total Liabilities	854.74M	1.12B	930.65M	980.47M	1.29B	950.61M
Stockholders Equity	2.90B	3.13B	2.70B	2.53B	2.22B	1.76B
Cash Flow
Free Cash Flow	174.58M	307.98M	417.83M	709.28M	332.21M	201.63M
Operating Cash Flow	237.60M	352.91M	505.81M	763.40M	429.51M	300.77M
Investing Cash Flow	215.38M	-281.26M	-154.79M	-383.28M	-117.31M	30.19M
Financing Cash Flow	-315.03M	-359.59M	-311.59M	-296.98M	-186.88M	-105.86M

Precision Tsugami (China) Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1651, the sentiment is Positive. The current price of 35.7 is above the 20-day moving average (MA) of 32.48, above the 50-day MA of 29.92, and above the 200-day MA of 21.74, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 75.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1651.

Precision Tsugami (China) Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1651	78 Outperform	HK$11.94B	14.05	26.85%	2.66%	35.16%	62.30%
1286	76 Outperform	€7.93B	11.55	14.15%	3.48%	2.87%	17.03%
2285	74 Outperform	HK$10.20B	8.94	14.64%	8.90%	28.34%	―
2722	69 Neutral	€6.30B	10.14	7.29%	2.15%	11.18%	46.57%
1057	65 Neutral	HK$10.16B	20.84	9.35%	1.38%	39.08%	38.08%
2155	65 Neutral	HK$11.92B	14.80	13.83%	1.56%	-13.95%	-13.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Precision Tsugami (China) Corp. Ltd. Corporate Events

Precision Tsugami (China) Projects 48% Profit Increase Amid Industry Growth

Precision Tsugami (China) Corporation Limited has announced a positive profit alert, expecting a 48% increase in profit for the six months ending September 2025 compared to the same period in 2024. This growth is attributed to the recovery of the domestic economy and increased demand in the machine tool industry, driven by sectors like new energy vehicles and artificial intelligence. The company’s strategic expansion into various manufacturing sub-sectors and efforts in cost reduction and efficiency improvement have enhanced its product competitiveness and profitability.

The most recent analyst rating on (HK:1651) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on Precision Tsugami (China) Corp. Ltd. stock, see the HK:1651 Stock Forecast page.

Precision Tsugami (China) Corp. Ltd. AGM Resolutions Passed with Unanimous Support

Precision Tsugami (China) Corp. Ltd. held its Annual General Meeting on August 18, 2025, where all proposed resolutions were passed with significant shareholder support. Key decisions included the approval of financial statements, a final dividend declaration, the re-election of directors, and the re-appointment of auditors, reflecting strong governance and shareholder confidence in the company’s strategic direction.

Precision Tsugami Announces Upcoming Financial Results of Controlling Shareholder

Precision Tsugami (China) Corp. Ltd. announced that its controlling shareholder, Tsugami Corporation, will release its financial results for the quarter ending June 30, 2025. This announcement provides stakeholders with insights into the financial health and performance of Tsugami’s China segment, which includes operations of Precision Tsugami and its subsidiaries. The financial results are prepared in accordance with IFRS, but due to differences in consolidation, they are not directly comparable to Precision Tsugami’s own financial disclosures.

Precision Tsugami Announces AGM with Key Resolutions

Precision Tsugami (China) Corporation Limited has announced its upcoming Annual General Meeting (AGM) scheduled for August 18, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, the declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting a mandate for share repurchase. These resolutions are poised to impact the company’s governance and financial strategies, potentially affecting shareholder value and market positioning.