Soochow: Tiangong International (00826) is rated as "buy", optimistic about the volume in consumer electronics for titanium alloy.

Soochow released a research report stating that it is expected that TIANGONG INT'L (00826) will have revenues of 5.2 billion, 6.1 billion, and 7 billion yuan from 2025 to 2027, with corresponding growth rates of 8%, 16%, and 14% respectively; net profit attributable to shareholders is expected to be 430 million, 610 million, and 810 million yuan, with corresponding growth rates of 20%, 41%, and 35%, and corresponding PEs of 17, 12, and 9 times. The bank is bullish on the company's titanium alloy in consumer electronics and its forward-looking layout in the field of new materials. It has initiated coverage for the first time and given it a "buy" rating. The report stated that the company has started cooperating with domestic companies in the field of high-nitrogen steel for the humanoid Siasun Robot & Automation screw material layout. High-nitrogen steel is one of the ideal materials for manufacturing planetary roller screw due to its high performance and low cost advantages. Currently, the company has overcome foreign technical barriers by using unique domestic smelting technology to address difficulties in controlling nitrogen content and improving purity in high-nitrogen alloy materials. The company's high-nitrogen steel has advantages such as high strength, toughness, corrosion resistance, wear resistance, and fatigue resistance. In July 2025, it successively developed high-nitrogen steel products suitable for planetary roller screw production with Runfuo Power and Hengerda New Materials. In addition, TIANGONG INT'L is strategically positioned in the production of special materials for nuclear fusion core components, such as boron steel and RAFM steel. Boron steel has already achieved small-scale trial production. The blanket is one of the core components of the tokamak magnetic confinement fusion device, requiring good resistance to irradiation swelling, high-temperature strength, thermal conductivity, and inherent low activation properties. RAFM steel is recognized as the most mature and mainstream candidate structural material for blankets. With high neutron absorption capacity, sufficient mechanical properties, and corrosion resistance, boron steel is an attractive shielding material. The company has successfully overcome the core technology of high-boron steel (304B7) for neutron shielding in fusion devices and achieved small-scale trial production. At the same time, the company is accelerating the application development of advanced low-activation steel (RAFM steel) for nuclear fusion key structural materials.