HK Stock Market Move | TSUGAMI CHINA (01651) surged over 10% to a new high, with a 48% year-on-year increase in mid-term net profit. The liquid cooling track has opened up a new growth curve.

TSUGAMI CHINA (01651) rose more than 10%, reaching a high of 35.88 Hong Kong dollars during the trading session to set a new record high in the market, with the stock price rising by 200% since the beginning of the year. As of the time of publication, it rose by 10.32%, closing at 35.06 Hong Kong dollars, with a trading volume of 1.13 billion Hong Kong dollars. On the news front, on October 17, TSUGAMI CHINA disclosed its interim report for the first half of the 2026 fiscal year (April-September 2025), announcing that the company is expected to achieve a net profit attributable to shareholders of 5.02 billion yuan, representing a year-on-year increase of approximately 48%. The board believes that the growth in the company's performance is benefiting from the continued recovery of the domestic economy. The transformation and upgrading of China's manufacturing industry, especially in areas such as new energy vehicles and artificial intelligence, have brought new demand to the machine tool industry. Furthermore, the company's continuous efforts in exploring and penetrating various segments of the manufacturing industry in recent years have also led to an increase in demand for the group's production of CNC high-precision machine tools. CICC believes that the company's forecasted profit growth of 48% significantly exceeds the industry average, making it a leading player in the recovery process of the machine tool industry. The bank pointed out that TSUGAMI CHINA's largest downstream market is automotive components, benefiting from the capital expenditure dividend. In addition, the company is expanding its presence in the liquid cooling field, opening up a new growth curve. According to the company's performance meeting, the company has already reached cooperation agreements with leading liquid cooling equipment companies in the industry, and expects the related businesses to contribute to revenue in 2026, becoming the second growth curve after the automotive components sector.