Ge Long Hui A P P·2026-02-12 10:52Group 1 - The core viewpoint of the report indicates that Tian Gong International (0826.HK) is expected to see a recovery in exports in the second half of 2025, with significant growth in 3C titanium materials and powder metallurgy products for 2026 and 2027. Revenue estimates for 2025 and 2026 have been raised by 2.8% and 3.5% to 5.366 billion and 6.639 billion yuan respectively, while net profit estimates have been increased by 13.3% and 29.6% to 414 million and 697 million yuan respectively [1] - The company is transitioning from a leader in tool steel to a high-end new materials supplier, with a maintained outperform rating and a target price increase of 76% to 5.29 HKD, implying a 50% upside potential based on a 2026 P/E of 18.4x [1] - The 3C titanium material business is projected to become a significant profit growth engine, driven by increasing demand in the consumer electronics sector, particularly after Apple's adoption of aerospace-grade titanium alloy frames in the iPhone series [1] Group 2 - The powder metallurgy platform technology is entering a harvest period, with three major application scenarios expected to create a second growth curve: 1) Development of high-boron stainless steel and RAFM low-activity steel for nuclear fusion core components, with small-scale trial production already achieved, positioning the company to benefit from the global nuclear fusion construction wave [2] - 2) Integrated die-casting molds using powder metallurgy technology are expected to significantly extend mold lifespan, allowing the company to penetrate the new energy vehicle supply chain with differentiated product advantages [2] - 3) The company has overcome challenges in nitrogen content control for high-nitrogen alloy materials using unique domestic smelting technology, with high-nitrogen steel already applied in high-end bearings, planetary roller screws, and marine fields, indicating potential for further growth [2]