HK Stock Market Move | TSUGAMI CHINA (01651) rose more than 6% in the morning trading session, with the expectation that AI liquid-cooled connector orders will become a source of future performance growth. DRIVE.

TSUGAMI CHINA (01651) rose more than 6% in early trading, up 4.86% as of the time of publication, at 31.5 Hong Kong dollars, with a turnover of 279.269 million Hong Kong dollars. In terms of news, TSUGAMI CHINA announced its interim results, with a total group revenue of 2.497 billion yuan in the first half of the year, an increase of about 26.2% year-on-year; gross profit of about 863 million yuan, an increase of about 35.1% year-on-year. The overall gross profit margin rose by about 2.5 percentage points from about 32.1% in the same period last year to about 34.6%; net profit was about 502 million yuan, an increase of about 47.7% year-on-year, with a proposed interim dividend of HK$0.60 per ordinary share. Industrial released a research report stating that the company's AI liquid cooling performed well in the first half of the fiscal year, with sales amounting to about 1.2 billion, accounting for 5.2% of domestic sales, and being one of the main drivers of performance growth. Direct liquid cooling connectors account for 80% of the total market demand, and the use of the company's main product automatic lathes has clear advantages. The processing technology of liquid cooling connectors has been basically determined, and the industry has entered the stage of bulk equipment procurement. By September 2025, the company has signed equipment orders with dozens of customers, accounting for about 5% of domestic order amount. This industry is expected to become one of the main drivers of the company's performance growth in the second half of the 2026 fiscal year and is likely to become one of the main drivers in the 2027 fiscal year.