Guotai Haitong: Continuous technological development drives the expansion of titanium alloy applications, domestic enterprises are expected to benefit from the surge in downstream demand.

Guotai Haitong released a research report stating that powder metallurgy technology and 3D printing processes are expected to continue driving the expansion of titanium alloy applications. In the future, with the maturation of 3D printing processes, powder metallurgy technology, etc., the firm believes that titanium alloys are expected to rapidly penetrate products such as folding machines, AR/VR headsets, drones and other products that have extreme requirements for lightweighting and structural strength. Domestic enterprises are deeply cultivating powder metallurgy processes and breaking through bottlenecks in nuclear fusion materials, and are expected to benefit from downstream demand. The related target is Tiangong International (00826). Guotai Haitong's main points are as follows: The leading powder metallurgy enterprise Tiangong International demonstrates growth confidence in performance assessment targets Tiangong International focuses on powder metallurgy technology and has significant advantages in nuclear fusion materials and titanium alloys. According to the announcement on January 20, the company has granted a total of 30,000,000 shares of stock options to directors and employees (accounting for approximately 1.10% of the total share capital), with an exercise price of HK$3.50 per share. The stock options will be vested over three years, with the premise that the annual audited comprehensive operating income for each corresponding year (26-28) increases by 25% or more compared to the previous year. Powder metallurgy can be used to prepare high-end nuclear fusion materials, and domestic enterprises actively breaking through bottlenecks have vast growth space in the future Materials for nuclear fusion reactors need to withstand extreme environments of high neutron irradiation, high temperature, high heat flow, and strong magnetic fields, with extremely high performance requirements. Currently, domestic enterprises represented by Tiangong International continue to break through bottlenecks and prepare advanced materials for nuclear fusion, including advanced low-activation steel and high-boron steel for nuclear power. Tiangong, through powder metallurgy technology, can achieve higher boron content (above 3%) and large size, while also having cost advantages. Currently, Tiangong International's subsidiary Tiangong Aih... The rest of the translation is cut off.