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

• Market Cap: HK$12.17B
• Dividend Yield: 3.4%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.60
• Revenue Growth: 32.27%
• EPS Growth: 59.22%
• Country: HK
• Employees: 2,240
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.48
• Shares Outstanding: 375,675,000
• 10 Day Avg. Volume: 1,686,840
• 30 Day Avg. Volume: 1,731,001
• PEG Ratio: 0.17
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 27.03
• 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: HK$40.70
• Price Target Upside: 25.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$35.00 ▲(8.02% Upside)

Precision Tsugami (China) Corp. Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability, and a solid balance sheet. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is reasonable, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for the company's products and services, enhancing its market position and competitive edge.

Balance Sheet Strength

Minimal leverage reduces financial risk and provides greater flexibility for strategic investments and weathering economic downturns.

Profitability Margins

High profitability margins reflect efficient operations and cost management, supporting sustainable earnings and potential for reinvestment.

Negative Factors

Operating Cash Flow Management

Declining operating cash flow may indicate inefficiencies in cash management, potentially impacting liquidity and investment capacity.

Cash Flow to Net Income Ratio

A low cash flow to net income ratio suggests that earnings are not being efficiently converted into cash, which could affect financial stability.

Operating Cash Flow Decline

A decrease in operating cash flow could signal challenges in maintaining liquidity, potentially limiting the ability to fund operations and growth.

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 CNC machine tools and related products. The company has a diversified revenue model that includes direct sales to manufacturers, aftermarket services, and maintenance contracts. Key revenue streams include the initial sale of machinery, ongoing service agreements, and the sale of spare parts and accessories. Additionally, the company benefits from strategic partnerships with other technology firms that enhance its product offerings and market reach, contributing to steady earnings growth.

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

Summary

Precision Tsugami (China) Corp. Ltd. exhibits strong financial health with robust revenue growth of 18.27%, high profitability margins, 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	4.99B	4.26B	3.12B	4.05B	4.42B	3.12B
Gross Profit	1.71B	1.41B	895.54M	1.04B	1.17B	765.31M
EBITDA	1.43B	1.20B	762.46M	840.03M	967.44M	587.07M
Net Income	987.80M	782.42M	479.97M	579.19M	667.40M	391.95M
Balance Sheet
Total Assets	4.80B	4.25B	3.63B	3.51B	3.51B	2.71B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.08B	1.11B	977.57M	570.93M	430.12M
Total Debt	4.44M	2.34M	4.09M	3.16M	24.84M	3.29M
Total Liabilities	1.12B	1.12B	930.65M	980.47M	1.29B	950.61M
Stockholders Equity	3.36B	3.13B	2.70B	2.53B	2.22B	1.76B
Cash Flow
Free Cash Flow	657.50M	307.98M	417.83M	709.28M	332.21M	201.63M
Operating Cash Flow	683.90M	352.91M	505.81M	763.40M	429.51M	300.77M
Investing Cash Flow	-445.96M	-281.26M	-154.79M	-383.28M	-117.31M	30.19M
Financing Cash Flow	-522.22M	-359.59M	-311.59M	-296.98M	-186.88M	-105.86M

Precision Tsugami (China) Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.40
• 50DMA: Negative
• 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 Neutral. The current price of 32.4 is below the 20-day moving average (MA) of 32.46, below the 50-day MA of 33.60, and above the 200-day MA of 25.83, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 34.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1286	76 Outperform	HK$9.36B	13.64	14.15%	3.23%	2.87%	17.03%
2285	74 Outperform	HK$10.72B	9.40	14.64%	8.66%	28.34%	―
1651	68 Neutral	HK$12.17B	11.86	26.85%	3.40%	32.27%	59.22%
2722	65 Neutral	HK$7.26B	11.68	7.29%	2.50%	11.18%	46.57%
1057	65 Neutral	HK$13.56B	19.27	9.59%	1.37%	35.32%	24.24%
2155	64 Neutral	HK$11.89B	14.77	13.83%	1.57%	-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 Announces Interim Dividend for 2025

Precision Tsugami (China) Corp. Ltd. has announced an interim cash dividend of HKD 0.6 per share for the six months ending 30 September 2025, to be paid on 13 January 2026. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its market position and investor confidence.

Precision Tsugami’s Controlling Shareholder to Announce Interim Financial Results

Precision Tsugami (China) Corporation Limited has announced that its controlling shareholder, Tsugami Corporation, will release its interim financial results for the half year ended September 30, 2025. These results will provide insights into the financial performance of Tsugami’s China segment, which includes operations from Precision Tsugami and its subsidiaries. The announcement highlights the use of International Financial Reporting Standards for financial reporting, though it notes differences in consolidation practices between Tsugami Japan and the Group, affecting direct comparability of financial results.

Leadership Restructuring at Precision Tsugami (China) Corp. Ltd.

Precision Tsugami (China) Corp. Ltd. has announced significant changes in its leadership structure, effective from November 13, 2025. Dr. Tang Donglei and Dr. Li Zequn have resigned from their executive roles to focus on mentoring future leaders, while Dr. Wang Xiaokun has been appointed as the new Chairman and CEO. These changes are part of the company’s strategic efforts to ensure continued growth and leadership development, potentially impacting its market positioning and operational strategies.

Precision Tsugami (China) Corp. Ltd. Announces Board Composition

Precision Tsugami (China) Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides insights into the governance structure of the company, which could impact its strategic direction and operational efficiency, potentially influencing stakeholder confidence and market positioning.

Precision Tsugami (China) Reports Strong Interim Results for 2025

Precision Tsugami (China) Corp. Ltd. reported a notable increase in its interim results for the six months ending September 30, 2025, with revenue rising to RMB 2,496,895,000 from RMB 1,978,056,000 in the same period of 2024. The company’s profit before tax increased significantly to RMB 703,527,000, indicating strong operational performance and improved market positioning, benefiting shareholders with higher earnings per share.

Precision Tsugami (China) Schedules Board Meeting for Interim Results

Precision Tsugami (China) Corp. Ltd. has announced a board meeting scheduled for November 13, 2025, to consider and approve the interim results for the six months ending September 30, 2025, and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

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.