Understanding the Market | TIANGONG INT'L rises over 6%, the company positions itself in the scarce core materials track, with broad growth potential in titanium alloys and nuclear fusion materials
TIANGONG INT'L's stock price rose over 6%, closing at HKD 3.13, with a trading volume of HKD 142 million. The company has broad growth potential in the fields of titanium alloys and nuclear fusion materials, and powder metallurgy technology aids in the development of new materials. The long-term supply agreement signed with Heng Er Da provides stable support for future performance, and the outlook for the high-end titanium alloy business is optimistic
According to Zhitong Finance APP, TIANGONG INT'L (00826) rose over 6%, with a current increase of 6.1%, priced at HKD 3.13, with a transaction volume of HKD 142 million.
In terms of news, the "Suggestions of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development" proposed forward-looking layouts for future industries, promoting nuclear fusion energy and others as new economic growth points. Industrial Securities previously stated that the company's strategic position in nuclear fusion materials is prominent and the market is vast, with its powder metallurgy technology expected to assist in development. Additionally, titanium alloys can be widely used in robotics, 3C devices (such as mobile phone frames), and aerospace, with clear growth in downstream demand. The company mainly produces titanium alloy wire and extends downstream into titanium alloy powder for 3D printing. The firm believes that the company occupies a rare core material track, and in the medium to long term, there is ample growth space in titanium alloys, nuclear fusion materials, and humanoid robots.
First Shanghai pointed out that the company signed a long-term supply agreement with Heng'erda in the first half of the year, under which Heng'erda will purchase no less than 100 tons of powder high-speed steel materials for cutting tools from TIANGONG each year for five years starting in 2026, totaling no less than 600 tons over five years. The signing of this agreement not only provides stable support for the company's future performance but also further consolidates its market position in the specialized powder high-speed steel segment. Looking ahead, the firm holds an optimistic outlook on the prospects of the high-end titanium alloy business: next year, the demand for new models from downstream customers will gradually be released; on the other hand, the company's high-end titanium alloy industry construction in aerospace, healthcare, and nuclear fusion has achieved phased results
