02 July 2024

  • In light of the slowdown in domestic manufacturing industry affected by macroeconomic uncertainties and the on-going geopolitical conflicts intensified which dragged down exports, demand for CNC machine tools remained sluggish. Precision Tsugami (China) (PTC) FY24 revenue was down by 22.9% YoY to Rmb3.1bn. Net profit decreased by 17.1% YoY to Rmb480.0m in FY24. Both top and bottom line came in line with our expectation. Despite the drop in revenue, the company’s overall GPM improved by 3.1ppt to 28.7% in FY24m, marking a historical high, as its efforts in cost cutting along its supply chain in the past few years started to pay off. Despite the weak market sentiment, PTC continued to penetrate into the machine tools market. As a result, its number of distributors increased from 368 in FY23 to 442 in FY24; while the number of existing customers further expanded from 8.0k FY23 to 8.5k in FY24.
Crosby Research – Precision Tsugami (China) (1651 HK): FY24 results in line with expectation