结果公布后的会议要点

meeting Key takeaways from post-results meeting NOT RATED Current Price Tsugami China released a strong set of FY25/26 (Mar year-end) results aftermarket close on29Jun, with net profit surging 40% YoY to RMB1.09bn. TheCompany held an analyst meeting on30Jun. Key takeaways:(1)Strong orderintakewasseen in Apr-Jun 2026 with capacitycurrentlyrunning at abovedesigned capacityof 15k units; (2) The Company’sprecision lathes are nowapplied in optical module components production, which will serve asanew China Capital Goods Wayne FUNG, CFA(852) 3900 0826waynefung@cmbi.com.hk Jake Zhang(852) 3900 0849jakezhang@cmbi.com.hk FY25/26(Mar year-end)results highlights.Revenue grew 22% YoY toRMB5.18bn(Precision lathes:+20%YoY to RMB4.3bn;Precisionmachiningcentres:+58%YoY to RMB386mn;Precision grindingmachines: +9% to RMB227mn; Components: +30% YoY to RMB232mn).Gross margin expanded 1.9ppt YoY to 34.9%.On the back of stringentexpense control, net profit grew 40% YoY to RMB1.09bn.Operating cash Penetratinginto optical moduleapplications.Tsugami China revealedthatits precision lathes cannowbe applied inthe production oftransmitteroptical sub-assembly (TOSA) and receiver optical sub-assembly (ROSA)for optical modules, with ultimate demand from NVIDIA(GB300).Tsugami Liquid coolingin data centres.Tsugami China’s automatic lathes offerasignificant cost advantage in processingUQDsin liquid cooling.TsugamiChina delivered ~1k units of machines in FY25/26. We see chancesfor the Humanoid robots.Tsugami China’s grinding machines are applied in theproduction ofreducers for humanoid robots.The Company deliveredseveral hundred units of machinesin FY25/26.Management mentionedthat the supply chainsof Tesla (TSLA, NR) and Unitreearemore active Source: FactSet Capacityconstruction progressontrack.Tsugami China is currentlyrunning at above the full utilization rate (designed capacity: 15k units/year).Itacquired alandparcelinZhejiang’sPinghu Economic Development Zonein May 2025 and planned to construct two plantsover the next two years(capex: ~RMB150mn). The new plantsareexpected to increase annual Company background Precision Tsugami(China) is a subsidiary of Tsugami Corporation (6101 JP, “株式會社ツガ ミ”,“Tsugami Japan”),a renowned Japanese CNC high precision machine toolmanufacturer. Tsugami China has grown into the largest foreign-branded CNC machinetoolmanufacturer in the Chinese machine tools market through 22 years of rapiddevelopment since thebusiness commencement in 2003. Tsugami China manufacturesand sells high-end CNC machine tools including precision lathes, precision machining Industry chart Source:Japan Machine Tool Builders’ Association,CMBIGM Source:Japan Machine Tool Builders’ Association,CMBIGM Source: Wind, CMBIGM Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report. Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and FuturesCommission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM Important DisclosuresThere are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGM does not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on theperformance of underlying assets or other variable market factors.CMBIGMrecommends that investors should independently evaluate particular investments or its affiliate(s) to whom i