CISI FIN: Maintain a "buy" rating on TSUGAMI CHINA (01651) with AIDC continuing to drive future performance growth.

CISI FIN Securities released a research report stating that it is expected that the revenue of TSUGAMI CHINA (01651) for the fiscal years 2027-2029 will be 6.196 billion, 6.895 billion, and 7.369 billion respectively, with the net profit attributable to shareholders being 1.348 billion, 1.492 billion, and 1.603 billion yuan respectively, with year-on-year growth of 23%, 11%, and 7% respectively, maintaining a "buy" rating. Key points from CISI FIN: Strong performance in fiscal year 2026 In fiscal year 2026, TSUGAMI CHINA's revenue was 5.18 billion yuan, an increase of 21.6% year-on-year, reaching a historical high. The gross profit margin increased by 1.8 percentage points to 34.9%, with a net profit growing by 39.9% year-on-year to 1.09 billion yuan, and a net profit margin increasing by 2.7 percentage points to 21.1%. Domestic sales reached 4.82 billion yuan, an increase of 27% year-on-year, while overseas sales were 0.36 billion yuan. The automotive industry remained the largest downstream market, with sales totaling 1.75 billion yuan, accounting for 36%. The 3C business significantly increased from 0.29 billion yuan to 0.53 billion yuan, with a share increase from 8% to 11%. Due to the significant increase in demand for AI computing power, the company's revenue from other industries increased from 1.35 billion yuan to 2.21 billion yuan, with a share increase from 36% to 46%. Entering the optical module supply, AIDC continues to be the driving force for future performance growth. In 2025, the company began to undertake more orders for AI liquid cooling connectors, and in 2026, the company began to undertake more orders for AI optical module ROSA, TOSA. With the increasing precision requirements for optical modules, the company's core advantages are becoming more obvious, and the company is also gaining more market share in this field. In the future, liquid cooling connectors will become more complex, and the demand for machine tool products is also on the rise. AIDC will continue to be the driving force for the company's performance growth. Demand for humanoid Siasun Robot & Automation products is in the early stages of the market. The company's external thread grinder has obtained approval from Japan's Tsugami, which will be used for the production of core components for humanoid Siasun Robot & Automation. Currently, the company has multiple devices that can be used to process core components of humanoid Siasun Robot & Automation, such as planetary roller screws, harmonic reducers, planetary reducers, etc. The humanoid Siasun Robot & Automation industry is still in the exploratory research and development stage, with the company awaiting the market's demand for scale. Risk warning Automobile industry demand declines more than expected, liquid cooling demand does not release as scheduled, raw material costs increase significantly.