Impro Precision Lifts 2026 Sales Forecast After 22.5% Revenue Gain

Impro Precision Industries reported a 22.5 percent first-quarter revenue jump to HK$1.43 billion and raised its full-year 2026 sales growth forecast.

"Despite headwinds from geopolitical volatility, Renminbi appreciation and higher upfront hiring and training costs tied to production ramp-up, the group’s sales momentum accelerated versus late 2025," Chairman and CEO Lu Ruibo said in a statement.

The revenue growth was driven by strong performance in its aerospace, energy, and diversified industrial segments, which saw year-on-year increases of 40 percent, 89.5 percent, and 81.4 percent, respectively. The company's heavy-duty engine business revenue grew 29 percent.

Following the announcement, Jefferies reiterated its Buy rating and HK$10.34 price target. Management raised its full-year 2026 sales growth guidance to a 15 to 20 percent range, citing a strong order backlog and accelerating demand.

The strong results were underpinned by robust demand for components used in artificial intelligence data centers, which offset continued weakness in the passenger car segment. The company noted early signs of recovery in commercial vehicles. Sales grew across all major geographies, including the Americas, Asia, and Europe.

The guidance revision signals management's confidence that strong demand from the AI and aerospace sectors will continue to outweigh automotive softness. Investors will look to the company's semi-annual report for confirmation of margin trends amid rising costs.

This article is for informational purposes only and does not constitute investment advice.