Tsugami China (01651) saw its shares rise more than 8% during the trading session, reaching a new high of HK$59.3. As of the latest update, the stock was up 6.92% at HK$58.7, with a turnover of HK$44.53 million.

The company anticipates its annual net profit for the period ending in March to be approximately RMB 10.94 billion, representing an increase of about 40% year-on-year. According to the announcement, the rapid development of emerging sectors such as AI liquid cooling and semiconductors has driven sustained growth in demand for high-precision, automated, and multi-functional machine tool equipment, which has become a primary driver of the company's performance growth.

Dongfang Securities believes that the advancement of AI computing power toward higher power levels presents expansion opportunities for AI manufacturing. In particular, the increased necessity and upgrading of liquid cooling systems have generated more demand for precision machining of machine tools. Kaiyuan Securities points out that, according to data from China Business Information Network, the scale of China's CNC machine tool market is projected to exceed RMB 450 billion by 2025, with the localization rate of high-end CNC machine tools standing at only 6%, primarily relying on imports from Japan. In January 2026, Japan's exports of CNC machine tools reached JPY 60.6 billion, a year-on-year increase of 111.7%, maintaining strong growth. Tsugami China is expected to fully benefit from constrained production capacity in Japan.

Approximately 18% of the company's orders in the first quarter of 2026 were related to AI liquid cooling, with gross margins higher than those of traditional equipment.