Yamato: Raises Tsugami China (01651) target price to HK$80, raises EPS estimate for 2027-28 by 4%.

Yamato Research published a report, reaffirming a "buy" rating on Tsugami China (01651) and increasing the target price from 77 Hong Kong dollars to 80 Hong Kong dollars. At the same time, the earnings forecast for the fiscal years 2027-28 was raised by 4%, mainly reflecting better-than-expected expense control by the company. The bank believes that Tsugami Machine Tool is one of the key beneficiaries of AI infrastructure investment. Demand for AI liquid-cooled quick disconnect heads remains strong, with management indicating that orders for the fiscal year 2026 have reached approximately 1,000 units, and are expected to double in the fiscal year 2027, driven mainly by deployment related to Nvidia GB300.