Shares of TIANGONG INT'L (ASX: 00826) rose more than 6% in afternoon trading. At the time of writing, the stock was up 5.17% to HK$3.46, with a turnover of HK$43.58 million.

The company's indirectly owned subsidiary, Jiangsu Tiangang Hard Alloy Technology Co., Ltd., officially commenced a construction project on July 7th. The project aims to expand production capacity for 300 tons per year of ultra-fine grain PCB tool-specific rod material, alongside an annual output target of 100 million PCB milling cutters and 300 million PCB drill bits.

This move signifies the company's formal entry into the upstream consumables sector of the PCB industry chain.

In other news, reports indicate Apple has raised its production preparation target for its new foldable screen device this year to approximately 10 million units. This figure is notably higher than the market's previous general expectation of 7 to 8 million units.

A securities research report notes that if the ultra-fine grain PCB rod project proceeds smoothly into production and is adopted by downstream PCB tool customers, the company could embark on a new high-growth trajectory driven by AI-related high-demand materials.

Furthermore, the production of foldable screens is expected to stimulate demand for titanium alloy powder within the 3C industry. The report anticipates that through its comprehensive and deep layout across the entire consumer electronics titanium alloy supply chain, the company has become a core raw material supplier for downstream 3C manufacturers.