Soochow Securities released a research report forecasting TIANGONG INT'L's (00826) 2025-2027 revenue at RMB5.2 billion, RMB6.1 billion, and RMB7.0 billion, representing growth rates of 8%, 16%, and 14% respectively. Net profit attributable to shareholders is projected at RMB430 million, RMB610 million, and RMB810 million, with corresponding growth rates of 20%, 41%, and 35%, and P/E ratios of 17x, 12x, and 9x. The firm is optimistic about the company's titanium alloy expansion in consumer electronics and its forward-looking positioning in new materials, initiating coverage with a "Buy" rating.
The report highlights TIANGONG INT'L's development of high-nitrogen steel for humanoid robot ball screws, with domestic partnerships already established. High-nitrogen steel, known for its high performance and cost efficiency, is an ideal material for planetary roller screws. The company has overcome foreign technical barriers using proprietary smelting technology, addressing challenges such as nitrogen content control and purity enhancement in high-nitrogen alloys. Its high-nitrogen steel boasts superior strength, toughness, corrosion resistance, wear resistance, and fatigue resistance. In July 2025, collaborations with Runfu Power and HengErda were formed to develop high-nitrogen steel products for planetary roller screw production.
Additionally, TIANGONG INT'L is advancing specialized materials for nuclear fusion components, including boron steel and RAFM steel, with small-scale trial production already achieved for boron steel. The blanket, a core component of tokamak magnetic confinement fusion devices, requires excellent anti-irradiation swelling capability, high-temperature strength, thermal conductivity, and inherent low activation. RAFM steel is widely recognized as the most mature and mainstream candidate structural material for blankets. Boron steel, with its high neutron absorption capacity coupled with sufficient mechanical performance and corrosion resistance, presents an attractive shielding material. The company has successfully developed core technology for high-boron steel (304B7), a neutron-shielding material for fusion devices, and achieved small-batch trial production. It is also accelerating application development for RAFM steel, a critical structural material in nuclear fusion.