Tiangong International (0826.HK) 2025 Performance Review: Earnings Rebound, Accelerated Transformation into High-end New Materials

Gonggong News Agency • Gonggong Finance Bureau March 31 Report Title: Tiangong International (0826.HK) 2025 Performance Review: Earnings Rebound, Accelerated Transformation into High-end New Materials

On March 30, Tiangong International (0826.HK) released its 2025 financial report. Amid a complex global trade environment, the company achieved a breakthrough with revenue of 4.718 billion yuan and net profit attributable to shareholders of 400 million yuan, representing an 11.5% year-on-year increase. The net profit margin (attributable profit ratio) rose from 7.4% to 8.5%. The total comprehensive income attributable to shareholders was 402 million yuan, a year-on-year increase of 48.2%.

Earnings rebound from the bottom, with profits showing strong resilienceNet profit attributable to shareholders in the first half of 2025 was RMB 2.03 billion, a year-on-year increase of 10.4%, while net profit attributable to shareholders in the second half was RMB 1.97 billion, up by 12.8% year-on-year; the total comprehensive income attributable to shareholders in the first half was RMB 0.08 billion, and in the second half, it reached RMB 3.94 billion, representing a year-on-year growth of 20.0% and a quarter-on-quarter surge of 458.7%. The company's profitability shows a gradual improvement trend, mainly driven by the sustained recovery in demand due to the domestic manufacturing sector's revival and the product mix shifting towards high-end powder metallurgy.

Smooth price increases in traditional core businesses, with high-end manufacturing upgrades driving significant growth in 2026Mold steel, as the core business accounting for 48.6% of revenue, saw domestic sales grow by 3.3% year-on-year, with average selling prices rising by 4%. Gross margin improved from 12.1% to 14.5%; domestic sales of high-speed steel grew by 37%, with prices increasing by 23%, pushing gross margin from 15.2% to 16.7%; cutting tools experienced both volume and price increases, with domestic sales growing by 19.9%. The rise in the proportion of cemented carbide tool sales drove an average price increase of 12.4%, initiating a new growth cycle for tools. The key rationale behind smooth price increases in traditional businesses lies in the recovery of domestic manufacturing activity. The company successfully passed on raw material costs thanks to its absolute pricing power for high-end products. Looking ahead to 2026, with the popularization of integrated die-casting technology in new energy vehicles and the progress of high-end equipment localization, industry demand will continue to be released. The company’s mold steel and high-speed steel products have obtained international authoritative certifications and entered global supply chains such as Volkswagen, combined with the dividends of domestic manufacturing upgrades, the traditional core business is expected to achieve higher growth rates, with more evident results from high-end manufacturing upgrades.

Marginal improvements in titanium alloy business, with consumer electronics and aerospace forming new growth polesTitanium alloy revenue in 2025 was RMB 6.26 billion, down 17.2% year-on-year, mainly affected by the temporary downgrade of materials by end customers in consumer electronics (from high-priced titanium alloy wire to aluminum alloy), leading to an average price drop of 27%. However, sales volume still grew against the trend by 14%, showing underlying demand resilience. More importantly, the adjustment period for the consumer electronics segment has ended, with major customers starting mass supply of new products in the fourth quarter of 2025. Profit margins recovered to historical highs in the second half of 2025, and full-scale mass production is expected in 2026, with annual titanium alloy shipments forecasted to break historical records, driving gross margin back to historical levels.

Additionally, 2025 witnessed outstanding highlights in aerospace and 3D printing sectors: successful delivery of the first batch of aerospace-grade titanium alloy wires, signing of joint R&D agreements for civil aircraft and drone fasteners, breaking import dependency; mastery of plasma beam atomization powder technology, enabling the production of ultra-high-purity titanium alloy powders suitable for high-end additive manufacturing applications, injecting new momentum into business growth.

New breakthroughs in powder metallurgy technology, with nuclear fusion and laser cladding leading the transformation to new materialsLeveraging fundamental powder metallurgy technologies, the company has achieved strategic leaps from zero to one in emerging fields. In the field of controlled nuclear fusion, the company successfully produced 600kg-grade TPM304B7 boron-containing steel plates and advanced RAFM steel research, solving bottlenecks in reactor blanket materials. In humanoid robotics, independently developed high-nitrogen alloy material TPMDC02A has been successfully applied to planetary roller screws, breaking import monopolies. Additionally, the company introduced plasma atomization technology and acquired equity in Shanghai Gaize, aggressively entering the 3D printing and laser cladding sectors, achieving independent production of ultra-high-purity spherical metal powders. These breakthroughs mark the company's comprehensive entry into the global high-end new materials platform arena, transitioning into a core materials supplier for fields such as nuclear fusion, aerospace, and humanoid robotics, laying a solid technical foundation for long-term development.

Looking ahead, Tiangong International, leveraging the dual drivers of 'profit increase through price hikes in core businesses + order breakthroughs in emerging sectors', along with the dividends of domestic high-end manufacturing demand and technological innovation advantages, is well-positioned to continuously expand its share in the global high-end materials market, creating long-term sustainable value for shareholders.

$TIANGONG INT'L (00826.HK)$ 、 $TGGF (920068.BJ)$

Source: Gonggong News Agency - Gonggong Finance Bureau

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