HK Stock Market Move | TSUGAMI CHINA (01651) rose more than 8% in midday trading, breaking through the peak. The company's annual net profit is expected to increase by approximately 40%, benefiting from the surge in demand for AI liquid cooling.

TSUGAMI CHINA (01651) soared more than 8% in midday trading to hit a new high of HK$59.3. As of press time, it was up 6.92% at HK$58.7, with a trading volume of HK$44.5344 million. On the news front, TSUGAMI CHINA expects its annual net profit to be approximately RMB 1.094 billion by the end of March, an increase of about 40% year-on-year. The announcement stated that the rapid development of emerging fields such as AI liquid cooling and semiconductors has led to a continuous increase in demand for high-precision, automated, and compound machine tools, becoming a major driver of the company's performance growth. Orient believes that the development of AI computing power towards high power provides opportunities for expansion in AI manufacturing, particularly the increased necessity and upgrade of liquid cooling systems, which has led to more demand for precision machining of machine tools. Open Source Securities pointed out that according to China Industry Intelligence Network, the size of China's CNC machine tool market is estimated to exceed RMB 450 billion in 2025, with a domestication rate of high-end CNC machine tools of only 6%, mostly imported from Japan. In January 2026, Japan's CNC machine tool exports reached 60.6 billion, a year-on-year increase of 111.7%, showing sustained high growth. TSUGAMI CHINA is expected to benefit fully from the limited production capacity in Japan. The proportion of AI liquid cooling-related orders in the company's Q1 2026 is about 18%, with a higher gross profit margin than traditional equipment.