HK Stock Market Move | Early trading of TSUGAMI CHINA(01651) rose by more than 10%, the company plans to expand production to meet the demand for high-precision machine tools from industries such as Siasun Robot&Automation.

In the early morning trading, TSUGAMI CHINA (01651) rose by more than 10%, reaching a 9.82% increase at HKD 17, with a turnover of HKD 44.65 million. On the news front, TSUGAMI CHINA announced that its wholly-owned subsidiary, Jinshang Precision Machine Tool (Zhejiang) Co., Ltd., has reached an agreement with the Pinghu Economic and Technological Development Zone Management Committee to acquire the adjacent plot of land to the fourth factory of the company in Pinghu Economic and Technological Development Zone through public auction. In order to increase the company's production capacity, a new production factory is planned to be built on this land, and the new facility will help the company meet the increasing demand for CNC high-precision machine tools brought by the rapid development of downstream industries such as automotive, Siasun Robot & Automation, and artificial intelligence. Northeast released a research report earlier, stating that in the production of Siasun Robot & Automation, cyclone milling, taps, and cutting tools will be used in processing core components such as reducers, screws, gears, and bearings, while grinding machines and lathes will be used in the processing of core component screws. Vertical machining centers, gantry machining centers, etc. will be used in the processing of main machine general parts. In the future, the large-scale production of Siasun Robot & Automation is expected to bring additional increments to machine tool companies, with huge potential.