TIANGONG INT'L (00826) rose more than 9% in Hong Kong trading. At the time of writing, the stock was up 9.69% to HK$4.19, with a turnover of HK$51.57 million. The increase follows the company's recent announcement of a deep strategic cooperation agreement with Bodycote, a global leader in heat treatment and hot isostatic pressing (HIP) technology. The partnership will integrate core strengths to achieve comprehensive business synergy in high-end manufacturing sectors such as aerospace, automotive, and energy, aiming to establish a new global collaborative development model combining technology, production capacity, and market access.

Concurrently, the company's subsidiary, Jiangsu Tiangong Xinzhi Materials Co., Ltd., is planning a second-phase powder metallurgy project. The plan involves adding five new HIP units to further solidify the company's capacity and technological advantages in the high-end alloy materials powder metallurgy sector, providing solid support for the implementation of the strategic cooperation.

China International Capital Corporation (CICC) recently issued a research report stating that, considering TIANGONG INT'L's potential for continuous volume growth in high-end materials starting in 2026, which will drive its transformation from a leader in tool steel to a high-end new materials supplier, the brokerage has shifted its valuation basis to 2026. CICC maintained its Outperform rating on the company and raised its target price by 76% to HK$5.29. This new target implies a 50% upside from the current price and corresponds to a 2026 price-to-earnings (P/E) ratio of 18.4x. The company's current share price implies a 2026 P/E of 12.3x and a 2027 P/E of 9.5x.