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

• Market Cap: HK$11.26B
• Dividend Yield: 3.22%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.45
• 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: 1,770,100
• 30 Day Avg. Volume: 2,402,502
• 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: HK$32.00
• Price Target Upside: 6.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$32.00 ▲(6.74% Upside)

Precision Tsugami (China) Corp. Ltd. exhibits strong financial health and reasonable valuation, making it an attractive investment in the manufacturing sector. The bullish technical indicators support a positive outlook, although caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Strength

Minimal leverage reduces financial risk, providing stability and flexibility for future investments and growth opportunities.

Profitability

Strong profitability metrics indicate efficient operations and cost management, enhancing the company's ability to reinvest in growth.

Negative Factors

Operating Cash Flow Management

Declining operating cash flow suggests potential inefficiencies in cash management, which could impact liquidity and investment capacity.

Cash Flow to Net Income Ratio

A low cash flow to net income ratio may indicate that earnings are not being effectively converted into cash, potentially affecting financial flexibility.

Cash Management

Improving cash management is crucial for maintaining liquidity and supporting ongoing operations and strategic initiatives.

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

Company Description

Precision Tsugami (China) Corp. Ltd. (1651) is a leading manufacturer of precision machine tools and components, primarily operating in the CNC (Computer Numerical Control) machining sector. The company specializes in producing high-precision lathes and machining centers that cater to various industries, including automotive, aerospace, and electronics. With a strong emphasis on quality and innovation, Precision Tsugami leverages advanced technology and engineering expertise to deliver cutting-edge solutions that meet the stringent demands of its global clientele.

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: 29.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 29.98 is above the 20-day moving average (MA) of 27.99, above the 50-day MA of 24.26, and above the 200-day MA of 19.07, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 is Negative, 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	80 Outperform	HK$11.26B	13.33	26.85%	3.22%	35.16%	62.30%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%
CE3	―	€811.20M	9.80	7.29%	―	―	―
W4K1	―	€1.03B	19.56	9.35%	―	―	―
7IP	―	€775.19M	9.60	14.15%	―	―	―
2155	80 Outperform	HK$13.55B	17.04	13.83%	1.36%	-13.95%	-13.61%
2285	69 Neutral	HK$10.68B	9.32	14.64%	8.73%	28.34%	―

Precision Tsugami (China) Corp. Ltd. Corporate Events

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.

Precision Tsugami Announces Board Reshuffle

Precision Tsugami (China) Corp. Ltd. announced several changes to its board of directors, effective June 25, 2025. Dr. Wang Xiaokun has been appointed as an executive director, while Mr. Kenji Yoneyama has resigned as a non-executive director to focus on other business commitments. The company also appointed Mr. Shoichiro Haga as a non-executive director and made several other changes to the composition of its board committees. These changes are expected to impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder relations.

Precision Tsugami (China) Unveils Board Composition and Roles

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 clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

Precision Tsugami Reports Robust Financial Growth for 2025

Precision Tsugami (China) Corp. Ltd. reported a significant increase in its annual financial performance for the year ending March 31, 2025. The company’s revenue rose to RMB 4.26 billion, a substantial increase from the previous year, leading to a notable rise in profit before tax to RMB 1.14 billion. This growth underscores the company’s strong market positioning and operational efficiency, reflecting positively on its stakeholders.

Precision Tsugami Announces Final Dividend for FY 2025

Precision Tsugami (China) Corp. Ltd. announced a final cash dividend of HKD 0.5 per share for the financial year ending March 31, 2025. This decision reflects the company’s financial health and commitment to returning value to shareholders, with the payment date set for September 12, 2025, following shareholder approval in August.

Precision Tsugami China Updates on Tsugami Japan’s Annual Securities Report

Precision Tsugami (China) Corp. Ltd. announced that its controlling shareholder, Tsugami Japan, will include additional financial information in its Annual Securities Report following the adoption of IFRS. While both entities use the same accounting standards, differences in consolidation mean their financial results are not directly comparable. This update provides stakeholders with a clearer understanding of the financial dynamics within the group, highlighting the company’s significant role in the group’s overall performance.

Precision Tsugami (China) Schedules Board Meeting to Approve Annual Results

Precision Tsugami (China) Corporation Limited has announced a board meeting scheduled for June 25, 2025, to discuss and approve the audited annual results for the fiscal year ending March 31, 2025. The meeting will also consider a recommendation for a final dividend payment, highlighting the company’s ongoing financial management and potential shareholder returns.

Tsugami Corporation to Announce FY2025 Financial Results

Tsugami Corporation, the controlling shareholder of Precision Tsugami (China) Corp. Ltd., is set to announce its financial results for the fiscal year ending March 31, 2025. These results will include financial data from its China segment, which encompasses the operations of Precision Tsugami and its subsidiaries. The announcement will be followed by a financial results briefing for analysts and institutional investors, highlighting the company’s performance and business plans. The financial reports are prepared in accordance with International Financial Reporting Standards, although differences in consolidation entities mean they are not directly comparable to Precision Tsugami’s own financial disclosures.