On November 6, defense forging leader Xi'An Triangle Defense Co.,Ltd. (300775.SZ) surged by the 20% daily limit to close at CNY 30.59 per share, marking its highest price this year.
The rally followed the company's November 5 announcement of signing a Gas Turbine Project Development Agreement and Framework Order Agreement with Siemens Energy AG and Siemens Energy Canada Limited.
Siemens Energy, a global energy industry leader operating in over 90 countries, covers nearly the entire energy value chain—from conventional to renewable energy, grid technologies to storage solutions, and industrial electrification.
The development agreement qualifies Xi'An Triangle Defense to supply specific components for Siemens Energy, outlining technical prerequisites, processes, and certification standards. The framework order requires the Chinese firm to deliver products and tooling according to purchase orders, work statements, and drawings while ensuring quality compliance.
Notably, Xi'An Triangle Defense currently derives all revenue domestically. The company stated these agreements will positively impact its international market expansion without compromising operational independence. It emphasized sufficient funding, technology, and personnel to execute the projects without creating dependency on Siemens Energy.
However, the company cautioned investors that annual procurement volumes by Siemens Energy remain undetermined. Xi'An Triangle Defense pledged to disclose material updates per CSRC and Shenzhen Exchange regulations.
Specializing in forged components for aviation, aerospace, and shipbuilding, Xi'An Triangle Defense primarily supplies critical structural parts and engine discs for Chinese military/civil aircraft—its largest business segment.
Q3 2025 results showed CNY 1.247 billion revenue (down 8.51% YoY) but net profit rose 25.64% to CNY 375 million. Operating cash flow improved significantly to -CNY 39 million (93.42% narrower YoY).
Following the earnings report, Soochow Securities initiated coverage with a "Buy" rating, projecting 2025 net profit at CNY 459 million (31x P/E), though no target price was provided.