Tsugami, the Tokyo-listed machine tool maker, raised its full-year forecasts on 12 November. Revenue is now expected at ¥160bn (previously ¥145bn), operating profit at ¥48bn (¥36.5bn) and profit attributable to owners of the parent at ¥22.5bn (¥17bn). The company cites its first-half result and recent order trends. It also lifted its annual dividend forecast to ¥122 a share from the ¥98 set in May. (Earlier Tokyo Brief coverage)
China does most of the work
First-half revenue was ¥81.2bn, up 35.2%, with operating profit of ¥25.2bn, up 65.8%. Both are records, the company says. The China segment booked revenue of ¥71.6bn, up 40.2%, and segment profit of ¥21.5bn, up 55.1%. That revenue figure includes sales to other group companies; external revenue in China was ¥66.0bn. By customer location, China accounted for ¥65.7bn of group revenue. The Japan segment earned ¥2.4bn of segment profit and India ¥165mn.
One caveat on the profit
Other income rose to ¥1.5bn, including ¥1.32bn of subsidy income, mainly government subsidies to the Chinese subsidiary, against ¥315mn a year earlier.
Capacity follows demand
Tsugami is building a new plant block next to its Zhejiang factory, at a total cost of about ¥3.8bn, and renewing production equipment at about ¥3.9bn. Together these are expected to lift capacity by roughly 20%. The new block is due to start operating in January 2028. The company's presentation notes that its forecasts are not guarantees.