TSUGAMI CHINA (01651) announces mid-year performance, with a net profit of approximately 340 million yuan, a year-on-year increase of 53.7%.

TSUGAMU CHINA (01651) announced its interim performance for the six months ended September 30, 2024, with revenue of approximately RMB 1.978 billion, a year-on-year increase of approximately 32.4%; net profit of approximately RMB 340 million, a year-on-year increase of 53.7%; earnings per share of RMB 0.9, and an interim dividend of RMB 0.45 per share. While sales revenue and profit saw significant growth, the profitability during the review period continued to improve significantly. The gross profit margin increased by approximately 4.4 percentage points compared to the same period last year, reaching about 32.1%. The net profit margin increased by approximately 2.4 percentage points to about 17.2% compared to the same period last year. Both gross profit margin and net profit margin reached their highest levels since the company was founded. The announcement stated that the main reason for the increase in total revenue is that the Chinese economy has bottomed out after a two-year downturn cycle, showing a slow recovery trend in 2024. Customer start-up rates have increased, leading to a release in equipment demand. In addition, through the company's efforts to continuously improve cost efficiency, the cost-effectiveness and competitiveness of products have significantly improved. During the review period, the company saw a certain increase in both orders and shipments, with sales of precision lathes increasing by approximately RMB 456 million, a 36.1% increase, having the greatest impact on the company's revenue. Sales of precision machining centers increased by 8.7% compared to the same period last year, and sales of precision grinding machines increased by 5.4%.