Core Viewpoint - The global economy in 2024 is facing significant challenges, but companies demonstrating resilience in this environment are increasingly valuable. Tian Gong International (00826) has reported strong performance in its 2024 financial results, indicating positive fundamental changes and potential for a rebound in performance [1] Financial Performance - In 2024, Tian Gong International achieved revenue of 4.832 billion RMB and a net profit attributable to shareholders of 359 million RMB, with operating cash flow increasing significantly to 502 million RMB [1] - The revenue structure shows that mold steel remains the largest source of income, accounting for 47.1% of total revenue, while cutting tools, high-speed steel, and titanium alloys accounted for 18.2%, 17%, and 15.7% respectively [1] Domestic Market Performance - The domestic mold steel business saw a revenue increase of 16.2% to 1.008 billion RMB, driven by both volume and price growth. High-speed steel sales in the domestic market also rose by 9.8% to 422 million RMB [1] - Despite a recovery in the domestic manufacturing sector, sales of cutting tools were 333 million RMB, indicating a bottoming phase due to high inventory levels among distributors. However, sales are expected to improve as inventory is cleared [2] Export and Product Development - Export sales increased by 5% to 546 million RMB, benefiting from strong demand in the North American market and the establishment of a production base in Thailand [2] - The titanium alloy business saw a 9.1% increase in overall sales volume, although prices declined due to product mix effects [2] Strategic Initiatives - Tian Gong International is focusing on creating value for customers by shifting from merely selling products to providing continuous services, forming a positive cycle of demand-driven innovation and service enhancement [3] - The company has increased investments in strategic emerging products and has strengthened technical cooperation with downstream casting enterprises, developing innovative products tailored to market trends [3] Research and Development - R&D expenses accounted for 6.2% of revenue in 2024, maintaining above 6% for two consecutive years, reflecting the company's commitment to innovation [4] - The company has made significant breakthroughs, including the successful delivery of aerospace-grade titanium alloy wire and the successful casting of high-quality titanium ingots, reinforcing its technical advantages in high-end titanium and titanium alloy fields [4][5] Future Outlook - With a focus on high-tech innovation, Tian Gong International is transitioning from a niche player in new materials to a technology-driven group aiming to reshape the global new materials industry landscape [5] - The company's leading technology is expected to be a core driver for stable business growth and global expansion in the future [5]
新材料企业的科技转型之路，中国制造业突围的天工国际（00826）样本