Q3 non-recurring net profit up 109-fold year-on-year, TGGF (920068) at an earnings inflection point opens a golden window for positioning

TGGF (920068), a leading player in the titanium alloy sector, has reached an earnings inflection point. On the evening of October 29, TGGF released its "2026 Third Quarter Report." The report shows that the company's revenue for the first three quarters was RMB372 million, with non-recurring net profit attributable to shareholders of RMB29.4162 million. Although both metrics still declined compared with the same period in 2025, breaking the figures down by quarter reveals a clearly evident earnings reversal trend at TGGF. Data shows that TGGF's revenue in the first three quarters of 2026 was RMB104 million, RMB126 million, and RMB143 million, respectively, while non-recurring net profit attributable to shareholders during the period was -RMB275,500, RMB10.2530 million, and RMB19.4387 million, respectively. Both revenue and net profit have shown clear sequential growth since the second quarter. Most critically, the third quarter was not merely a "sequential recovery" but a genuine resonance of year-on-year and sequential growth. Unlike the year-on-year declines in the first and second quarters, TGGF's third-quarter revenue rose 13.04% sequentially while surging 74.43% year-on-year; non-recurring net profit attributable to shareholders rose 89.60% sequentially while soaring 10,962.76% year-on-year. Revenue and profit strengthening simultaneously on both year-on-year and sequential dimensions means TGGF's earnings repair has shifted from a "rebound trend" to "strong improvement." Behind this change, Apple's first foldable-screen iPhone Duo stocking pace provided a direct catalyst. Although the model's official pre-order date was October 16, supply-chain stocking typically begins a quarter in advance, and TGGF's better-than-expected third-quarter performance precisely corresponds to the tangible landing of this front-loaded demand on the supply-chain side. The simultaneous recovery in gross margin further corroborates this logic. Data shows that from the first quarter to the third quarter of 2026, TGGF's gross margin was 7.03%, 16.07%, and 22.60%, respectively, showing an accelerating quarter-by-quarter rise. The third quarter's standalone gross margin of 22.60% was precisely due to the impact of its gradually recovering consumer electronics orders. This means the delivery share of TGGF's high-value-added titanium wire products is substantively recovering, rather than a price-cutting volume push in low-margin categories. The marked improvement in profit structure is more signal-worthy than the revenue growth rate itself. Moreover, judging from multiple dimensions including the titanium content of the iPhone Duo, expected sales volume, and the industry trend it drives, the impressive third-quarter financial report may only be a new starting point for TGGF's return to a growth trajectory. According to Apple's official disclosure, the iPhone Duo has three "titanium-using" parts: first, the body frame/midframe, made of Grade 5 titanium, which is the main load-bearing skeleton of the device; second, the hinge protective shell, the first large structural component on an Apple phone manufactured using 3D printing technology; and third, the titanium metal support plate at the bottom of the inner screen, used to disperse bending stress. In addition, supply-chain teardowns add that some pivot connecting arms inside the hinge, small titanium alloy pivot parts (MIM process), and pivot gears also involve titanium materials. Compared with the pure titanium midframe solution of the previous iPhone 15/16 Pro, the iPhone Duo's incremental titanium structure is clearer. According to supply-chain estimates, the iPhone Duo's titanium material usage per unit is about 23 times the titanium usage of previous generations of slab-style iPhones, representing a several-fold leap in material consumption per unit. On this basis, the sales ramp-up is expected to convert per-unit increments into a total-volume explosion. According to materials published by Goldman Sachs' Greater China Technology team after iPhone Duo pre-orders opened, it expects iPhone Duo sales to reach 13 million units in 2026 under a base case and 33 million units in 2027; under an optimistic scenario, it expects iPhone Duo sales of 35 million units in 2026 and potentially 66 million units in 2027. The divergence between the two scenarios lies not on the demand side but on the supply sidethe difference stems from different assumptions about the yield ramp-up speed of key components such as hinges and panels. This means that even if actual shipments initially fall within the base-case range due to yield issues, suppressed demand will not disappear, and deferred orders will eventually be filled once capacity is released. The base case and optimistic case are not mutually exclusive outcomes but rather the realization pace of the same demand curve under different supply conditions. However, focusing only on Apple's shipments may underestimate the imagination space for titanium demand expansion triggered by the foldable-screen wave set off by the iPhone Duo. The significance of the iPhone Duo lies in binding "foldable screen + titanium alloy + 3D printing" into a replicable process paradigm. Once yield and cost are proven viable, follow-up by Android manufacturers such as Honor, OPPO, and Samsung will turn single-brand innovation into industry-level material upgrading. Under such an industry trend, the demand curve will no longer be determined by one company's sales volume but jointly lifted by "the proportion of titanium-using models titanium usage per unit." According to CICC estimates, the market space for Apple's 3D-printed titanium materials and processing alone is about RMB3.2 billion in 2027 and rises to RMB7.5 billion by 2030. If the Android camp accelerates follow-up, the market space will expand significantly, which, mapped to the upstream titanium wire, titanium powder, and precision processing segments, will gain a pricing logic of "growth material" rather than "cyclical material." TGGF, which has successfully established a closed-loop full-industry-chain from titanium alloy base materials to 3D printing powder, will benefit to the greatest extent from this shift in pricing logic. Its deep full-industry-chain reach is the company's strongest card for navigating single-quarter fluctuations and delivering medium- to long-term growth. If TGGF's performance when supplying titanium alloy midframe materials for the iPhone 15 Pro series in 2023 is used as a reference, the earnings increment brought by this round of iPhone Duo has a comparable historical anchor. In 2023, TGGF's annual revenue exceeded RMB1 billion, and net profit attributable to shareholders reached RMB170 million, verifying the significant elasticity of consumer electronics titanium material volume growth. This time, the iPhone Duo's titanium usage per unit is several times that of slab-style phones, and the scale of titanium demand expansion triggered by the foldable-screen wave is far beyond what it was then. Coupled with TGGF's layout beyond consumer electronics in fields such as medical, aviation, and Siasun Robot&Automation, which is also expected to gradually enter a performance realization period, the company already has the foundation to set a new historical high in performance over the medium term, and now may be the golden window for positioning in TGGF.