Shares of TIANGONG INT'L (00826) rose more than 10% during the trading session. At the time of writing, the stock is up 9.87% to HK$4.34, with a turnover of HK$249 million.



Key Project Development

Recent market reports indicate a critical advancement for the company's titanium alloy powder project. The first set of plasma atomization powder production equipment is nearing the final installation and commissioning phase, with the first batch of finished titanium alloy powder expected to be produced by June this year. This project was previously listed as a major initiative in Jiangsu Province for 2025. The project is reportedly focused on two main areas: efficient utilization of recycled resources and the preparation of high-performance powders, aiming to establish a comprehensive, closed-loop green manufacturing system.



Analyst Coverage and Outlook

GTHT has previously highlighted that the company has successfully developed 304B7 powder metallurgy high-boron steel material (with 2% boron content) through industrial-scale methods for the first time domestically. This material offers significant improvements in strength and toughness compared to traditional casting processes and is expected to find wide application in key components of nuclear fusion and fission devices. This achievement has garnered significant attention from the International Thermonuclear Experimental Reactor (ITER) research team. The company has completed processing tests for specific complex structural components and sent samples to the ITER organization in France for verification testing, paving the way for potential deeper technical and commercial collaboration. GTHT forecasts net profits attributable to shareholders for 2026-2028 to be RMB 608 million, RMB 810 million, and RMB 1.028 billion, respectively, with corresponding EPS of RMB 0.22, RMB 0.29, and RMB 0.38. Based on a peer average 2026 P/E ratio of 30.62x, a target P/E of 18x for 2026 is applied, leading to a target price of HK$4.62. A "Buy" rating has been assigned.