Impro Precision Industries Limited (1286) AI Stock Analysis

• Market Cap: HK$4.60B
• Dividend Yield: 7.02%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.25
• Revenue Growth: 1.79%
• EPS Growth: 10.02%
• Country: HK
• Employees: 7,778
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 1,887,285,600
• 10 Day Avg. Volume: 767,000
• 30 Day Avg. Volume: 1,802,043
• PEG Ratio: 0.74
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Impro Precision Industries Limited is well-positioned in the industrial goods sector with strong financials, including significant income growth and sound cash flow management. The stock's valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a neutral outlook, lacking strong momentum. Overall, the company appears solid, though careful management of debt and capital expenditures is advised.

Impro Precision Industries Limited Business Overview & Revenue Model

Company Description

Impro Precision Industries Limited develops, produces, and sells casting products and precision machining parts in the United States, Europe, the People's Republic of China, and internationally. It operates in four segments: Investment Casting, Precision Machining, Sand Casting, and Surface Treatment. The company offers passenger cars, commercial vehicles, high horsepower engines, hydraulic equipment, construction equipment, agricultural equipment, recreational boats and vehicles, aerospace, and medical components. It also offers surface treatment services, such as plating, anodizing, painting, and coating. In addition, the company manages logistic centers and warehouses, as well as provides customer maintenance services. It serves automotive, high horsepower engine, construction equipment, agricultural equipment, hydraulic equipment, aerospace, medical, energy, recreational boat and vehicles, fire and security systems, telecommunication, forestry, and the food processing industries. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Impro Precision Industries Limited generates revenue through the manufacturing and sale of precision-engineered products. The company's primary revenue streams include investment castings, sand castings, and precision machining services. These products and services cater to a global clientele across various industries such as aerospace, automotive, medical, and energy. Impro Precision benefits from long-term contracts and partnerships with major industry players, which help stabilize its income. Additionally, the company's focus on high-quality standards and technological innovation allows it to maintain a competitive edge and attract premium pricing for its products.

Impro Precision Industries Limited Financial Statement Overview

Summary

Impro Precision Industries Limited presents a strong financial profile, with significant revenue and profit growth, stable margins, and sound cash flow management. The company is well-positioned in the industrial goods sector, though attention to managing debt levels and capital expenditure is crucial to maintaining financial health.

Income Statement

Impro Precision Industries Limited shows a strong income statement performance with a consistent revenue growth trend, rising from HKD 2.92 billion in 2020 to HKD 4.69 billion in 2024. The company has maintained a solid Gross Profit Margin, with the most recent year at approximately 27.08%. Net Profit Margin improved to 13.74% in 2024, indicating enhanced profitability. EBIT and EBITDA margins are commendable, reflecting efficient operational management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet shows a stable financial position with an improving equity base, reaching HKD 4.72 billion in 2024. The Debt-to-Equity Ratio has been maintained at a moderate level, indicating controlled leverage; as of 2024, it stands at approximately 0.47. The Equity Ratio is healthy at 57.78%, reflecting a strong equity position relative to total assets. However, the increasing debt levels over the years could pose a potential risk if not managed carefully.

Cash Flow

Impro Precision Industries Limited demonstrates strong cash flow generation capabilities. Free Cash Flow grew positively in 2024, reversing the negative trend in previous years. The Operating Cash Flow to Net Income Ratio is robust, indicating effective cash conversion from earnings. While Free Cash Flow to Net Income Ratio signifies good cash management, consistent capital expenditures need careful monitoring to avoid cash strain.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.69B	4.60B	4.35B	3.78B	2.92B
	Gross Profit
1.27B	1.18B	1.40B	1.13B	875.46M
	EBIT
888.16M	728.25M	734.87M	475.73M	404.49M
	EBITDA
1.18B	1.14B	1.17B	913.93M	371.69M
	Net Income Common Stockholders
644.30M	585.09M	581.95M	382.78M	-148.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
601.75M	630.85M	483.29M	578.96M	601.99M
	Total Assets
8.17B	8.30B	7.76B	7.04B	5.67B
	Total Debt
2.20B	2.26B	2.21B	1.54B	853.75M
	Net Debt
1.59B	1.63B	1.72B	965.89M	251.77M
	Total Liabilities
3.43B	3.40B	3.24B	2.52B	1.58B
	Stockholders Equity
4.72B	4.88B	4.38B	4.36B	4.01B
Cash Flow		Free Cash Flow
534.22M	570.04M	71.33M	-635.76M	317.07M
	Operating Cash Flow
1.15B	1.28B	782.29M	401.09M	864.57M
	Investing Cash Flow
-690.00M	-772.89M	-1.22B	-1.03B	-574.52M
	Financing Cash Flow
-467.17M	-359.69M	379.45M	607.11M	-339.12M

Impro Precision Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.44 is above the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.65, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1339	79 Outperform	$326.11B	4.68	17.85%	4.93%	4.62%	81.63%
1286	75 Outperform	HK$4.60B	7.15	13.24%	7.02%	1.79%	10.02%
0686	65 Neutral	$2.33B	25.24	1.64%	9.84%	23.69%	92.69%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
3899	64 Neutral	$12.47B	10.47	9.63%	4.88%	2.96%	-4.32%
1117	46 Neutral	HK$7.89B	―	-13.67%	0.49%	-3.39%	-868.11%

Impro Precision Industries Limited Corporate Events

Impro Precision Industries Secures Shareholder Approval for Key Resolutions

Impro Precision Industries Limited announced that all ordinary resolutions were approved at its Annual General Meeting held on May 8, 2025. The resolutions included the adoption of audited financial statements, re-election of directors, and granting mandates to the board for share repurchase and issuance. This approval reflects strong shareholder support and positions the company to continue its strategic initiatives and governance practices.

Impro Precision Industries Sets Agenda for 2025 AGM

Impro Precision Industries Limited has announced its upcoming Annual General Meeting (AGM) to be held on May 8, 2025, in Wuxi City, Jiangsu Province, China. The meeting will cover several key agenda items, including the adoption of the audited financial statements for the year ended December 31, 2024, re-election of directors, re-appointment of auditors, and authorization for share repurchase. These resolutions, particularly the share repurchase authorization, could impact the company’s stock market activities and provide strategic flexibility in managing its capital structure.

Impro Precision Industries Reports Revenue Growth Amid Market Volatility

Impro Precision Industries Limited reported a revenue increase of 1.8% to HK$4,686.8 million for the year ending December 31, 2024, with significant growth in the high horsepower engine and aerospace markets. Despite a volatile global market environment, the company’s strategic focus on global expansion and market diversification helped maintain stable performance, resulting in a 10.1% increase in profit attributable to shareholders and a strong cash flow position, enabling a total dividend of 16.0 HK cents per share.

Impro Precision Industries Declares Second Interim Dividend for 2024

Impro Precision Industries Limited announced a second interim dividend of HKD 0.08 per share for the financial year ending 31 December 2024, with the payment date set for 8 April 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and maintaining a stable financial performance, potentially enhancing its attractiveness to investors and solidifying its position in the precision engineering market.

Impro Precision Industries Schedules Board Meeting for Annual Results Review

Impro Precision Industries Limited has announced a board meeting scheduled for March 11, 2025, to review and approve the company’s annual results for the year ending December 31, 2024, and to consider a second interim dividend for 2024. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders.