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Impro Precision Industries Limited (HK:1286)
:1286
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Impro Precision Industries Limited (1286) AI Stock Analysis

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HK:1286

Impro Precision Industries Limited

(1286)

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Neutral 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:
HK$8.50
▲(67.98% Upside)
Action:Downgraded
Date:08/01/26
The score is anchored by solid financial performance—healthy margins, improving earnings versus 2020, and manageable leverage—but is held back by weaker cash-flow conversion and a sharp year-over-year decline in free cash flow. Technicals are a significant negative, with the share price below all key moving averages, while valuation is neutral-to-slightly supportive with a moderate P/E and a ~2.39% dividend yield.
Positive Factors
Steady growth and healthy profitability
Steady revenue expansion alongside healthy gross, EBIT, and net margins indicates the company is converting industrial demand into profitable growth. This combination supports reinvestment, strengthens resilience across customer programs, and provides a durable earnings foundation over the next several quarters.
Negative Factors
Weakening operating cash conversion
Operating cash flow remains positive, but weaker conversion from earnings means reported profits are translating less efficiently into usable cash. If this persists, working-capital demands or timing effects could constrain reinvestment, debt reduction, and the reliability of internally funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady growth and healthy profitability
Steady revenue expansion alongside healthy gross, EBIT, and net margins indicates the company is converting industrial demand into profitable growth. This combination supports reinvestment, strengthens resilience across customer programs, and provides a durable earnings foundation over the next several quarters.
Read all positive factors

Impro Precision Industries Limited (1286) vs. iShares MSCI Hong Kong ETF (EWH)

Impro Precision Industries Limited Business Overview & Revenue Model

Company Description
Impro Precision Industries Limited operates internationally, including in the United States, Europe, and the People's Republic of China, specializing in the design, manufacture, and distribution of advanced casting and precision-machined component...
How the Company Makes Money
Impro Precision Industries Limited makes money mainly by manufacturing and selling precision metal components and related value-added services to business customers. Revenue is generated from (1) the sale of precision parts and assemblies produced...

Impro Precision Industries Limited Financial Statement Overview

Summary
Fundamentals are generally solid with steady revenue growth and healthy profitability (2025 gross margin ~30.7%, EBIT margin ~16.7%, net margin ~14.3%) plus a sustained recovery from 2020 losses. Balance-sheet leverage looks manageable (debt-to-equity ~0.43; ROE ~12–14%), but rising total debt is a watch item. The main drag is cash-flow quality: weaker cash conversion (OCF ~0.55x net income) and sharply lower free cash flow in 2025 (~-45% YoY), indicating less consistent cash generation than reported earnings.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.66B5.10B4.69B4.60B4.35B3.78B
Gross Profit1.67B1.40B1.27B1.18B1.40B1.13B
EBITDA1.56B1.33B1.18B1.16B1.17B913.93M
Net Income800.88M726.18M644.30M585.09M581.95M382.78M
Balance Sheet
Total Assets10.93B9.39B8.17B8.30B7.76B7.04B
Cash, Cash Equivalents and Short-Term Investments1.25B720.94M601.75M630.85M483.29M578.96M
Total Debt2.50B2.43B2.20B2.26B2.21B1.54B
Total Liabilities4.08B3.77B3.43B3.40B3.36B2.66B
Stockholders Equity6.73B5.60B4.72B4.88B4.38B4.36B
Cash Flow
Free Cash Flow175.56M276.19M534.22M570.04M71.33M-635.76M
Operating Cash Flow1.31B1.18B1.15B1.28B782.29M401.09M
Investing Cash Flow-1.09B-988.38M-690.00M-772.89M-1.22B-1.03B
Financing Cash Flow343.95M-95.94M-467.17M-359.69M379.45M579.93M

Impro Precision Industries Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.06
Price Trends
50DMA
8.18
Positive
100DMA
8.84
Negative
200DMA
7.68
Positive
Market Momentum
MACD
0.01
Positive
RSI
50.20
Neutral
STOCH
35.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1286, the sentiment is Positive. The current price of 5.06 is below the 20-day moving average (MA) of 8.58, below the 50-day MA of 8.18, and below the 200-day MA of 7.68, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 35.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1286.

Impro Precision Industries Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$28.68B7.6313.60%4.53%7.74%0.33%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$16.43B18.8712.98%2.02%19.63%16.42%
58
Neutral
HK$6.82B6.0810.07%8.33%19.90%67.16%
51
Neutral
HK$1.73B3.954.42%4.52%-18.58%
45
Neutral
HK$10.05B-56.38-5.65%66.66%-87.31%
41
Neutral
HK$1.86B55.391.91%4.56%-3.71%-89.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1286
Impro Precision Industries Limited
7.93
4.25
115.41%
HK:0658
China High Speed Transmission Equipment Group Co
1.06
-0.46
-30.26%
HK:1882
Haitian International Holdings
17.66
-4.03
-18.59%
HK:0558
L.K. Technology Holdings Limited
1.34
-3.54
-72.62%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.85
-0.09
-4.75%
HK:2432
Shenzhen Dobot Corp Ltd Class H
21.66
-30.64
-58.59%

Impro Precision Industries Limited Corporate Events

Impro Precision Publishes Interim Results for First Half of 2026
Aug 11, 2026
Impro Precision Industries Limited, a Cayman Islands-incorporated company listed in Hong Kong under stock code 1286, operates in the precision manufacturing sector and serves global industrial customers. Its shares trade on the Main Board of The S...
Impro Precision Industries Declares Interim Dividend of HKD 0.08 Per Share
Aug 11, 2026
Impro Precision Industries Limited has declared an interim ordinary cash dividend of HKD 0.08 per share for the six months ended 30 June 2026, for its financial year ending 31 December 2026. The ex-dividend date is set for 24 August 2026, with the...
Impro Precision Schedules Board Meeting to Approve Interim Results and Dividend
Jul 28, 2026
Impro Precision Industries Limited has announced that its board of directors will convene on 11 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider the declaration of ...
Impro Precision reshapes board to bolster Aerotek growth and plant oversight
Jul 1, 2026
Impro Precision Industries Limited has announced board changes effective 1 July 2026, as executive director Zhu Liwei steps down from the board and the sustainability committee to concentrate on expanding the Group’s Aerotek Business Unit. Z...
Impro Precision Sets Out Board and Governance Committee Line-Up
Jul 1, 2026
Impro Precision Industries Limited has detailed the composition of its board, led by executive director, chairman and chief executive officer Lu Ruibo, alongside three other executive directors and three independent non-executive directors. The di...
Impro Aerotek Launches Employee Share Ownership Plan with RMB120 Million Share Issue
Jun 22, 2026
Impro Aerotek Limited, an indirect wholly owned subsidiary of Impro Precision Industries, has issued 40,597,600 new shares, representing about 4.88% of its equity, to employee shareholding partnerships under a newly adopted employee share ownershi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2026