IMPRO PRECISION (01286) saw its shares rise more than 8% during afternoon trading. At the time of writing, the stock was up 8.71%, trading at HK$8.24, with a turnover of HK$31.9022 million.
The positive movement is driven by industry trends. Currently, fueled by a wave of data center construction and global electricity shortages, the power generation business is emerging as the largest growth engine for the internal combustion engine industry. Previously, Cummins Inc. outlined its 2030 strategy, identifying power generation as the biggest future growth area for its traditional business and forecasting the global market for large-bore diesel generators to reach $12 billion by 2030.
An analysis report from GF Securities noted that IMPRO PRECISION's sand casting business is deeply aligned with the high-horsepower engine sector and has already secured a strong position within the supply chains of global industry leaders such as Caterpillar and Cummins. Benefiting from an explosion in demand for self-sufficient power generation from downstream customers, this segment is projected to maintain rapid growth from 2026 to 2029. Its revenue scale is expected to surpass that of investment casting, becoming the company's largest business division.
Furthermore, the company has commenced supply of fuel injection system components related to gas turbines. Technologically, it possesses the potential to expand into core components like blades and superalloys. In the future, IMPRO PRECISION is well-positioned to achieve a comprehensive industrial layout encompassing both gas turbines and aero-engines, positioning it to fully capitalize on the current high growth cycle in the global gas turbine industry.