Investment Rating - The report assigns a "Hold" rating for the company, marking its first coverage with a current price of 19.52 yuan [6]. Core Insights - The company is focused on expanding its production capacity while awaiting a recovery in demand for titanium and titanium alloy products, which are increasingly used in consumer electronics [4]. - The company has a concentrated ownership structure, with the largest shareholder, Jiangsu Tiangong Investment Management Co., Ltd., holding 67.63% of the shares [6]. - The report highlights the significant reliance on a single major customer, Changzhou Soloman, which accounted for 27.88%, 83.45%, and 71.72% of revenue from 2022 to 2024, indicating a high customer dependency risk [6][41]. Company Overview - Jiangsu Tiangong Technology Co., Ltd. was established in January 2010 and is headquartered in Zhenjiang, Jiangsu Province. The company primarily engages in the research, production, and sales of titanium and titanium alloy materials, with its main products being wire, plate, and pipe [12]. - The company has two subsidiaries, holding 55% of Jiangsu Tiangong Soloman Alloy Materials Co., Ltd. and 60% of Jiangsu Tiangong Titanium Crystal New Materials Co., Ltd. [13]. Titanium Industry Analysis - The titanium industry is characterized by a supply chain that includes titanium ore processing into sponge titanium, which is then cast into ingots and processed into various titanium products for applications in chemical, aerospace, and consumer electronics sectors [20]. - The report emphasizes the growing penetration of titanium and titanium alloys in consumer electronics due to their high strength, corrosion resistance, and unique surface texture, with applications expanding from mobile phone casings to cameras and laptops [21]. Financial Forecast - The company is projected to achieve total revenues of 678.27 million yuan, 1,007.10 million yuan, and 1,156.22 million yuan from 2025 to 2027, with growth rates of -15.35%, 48.48%, and 14.81% respectively [5]. - The net profit attributable to shareholders is expected to be 104.59 million yuan, 184.80 million yuan, and 252.86 million yuan for the same period, with growth rates of -39.34%, 76.68%, and 36.83% respectively [5]. Business Analysis - The company's production capacity for titanium and titanium alloy materials is expected to remain stable at 7,000 tons from 2023 to 2024, with production and sales figures showing a positive trend [39]. - Revenue from titanium and titanium alloy products accounted for approximately 94.78% to 95.62% of total revenue from 2022 to 2025, indicating a strong focus on this segment [38]. Management Team - The core management team is primarily composed of individuals born in the 1980s and 1990s, with a strong educational background and extensive industry experience [16].

Core Viewpoint - The company is experiencing short-term performance fluctuations due to external environmental factors and insufficient effective demand, but its strong position in the high-end titanium material processing industry and the smooth progress of key projects are expected to lead to continuous performance improvement [1]. Investment Highlights - The target price is maintained at 23.69 yuan with an "Accumulate" rating. Despite short-term performance fluctuations, the company is a core supplier in the domestic rare metal materials processing sector. EPS forecasts for 2025 and 2026 are 0.59 yuan and 0.74 yuan respectively, with a 2027 forecast of 0.9 yuan. Based on a comparable company average PE of 38 times for 2025, and considering the company's complete processing and manufacturing chain, a PE of 40.15 times is assigned for 2025, maintaining the target price of 23.69 yuan and the "Accumulate" rating [2]. - In 2024, the company is expected to achieve revenue of 2.946 billion yuan (-8.7%) and a net profit attributable to shareholders of 158 million yuan (-19.59%). In Q1 2025, revenue is projected at 754 million yuan (+7.01%) with a net profit of 32 million yuan (-12.39%). R&D investment continues to increase, with 173 million yuan allocated in 2024, a research expense ratio of 6.79% (+1.06 percentage points), reaching a recent peak, which is expected to further expand market opportunities [2]. Company Positioning - The company is deeply engaged in the high-performance metal materials sector, serving strategic emerging industries such as aerospace and weaponry, providing critical material support for the localization of major equipment, and is a core supplier in the domestic rare metal materials processing field [3]. - The company possesses a complete processing and manufacturing chain, with core processes such as smelting, forging, rolling, finishing, composite and post-processing, and deep processing all under its control, which is expected to drive continuous revenue growth [3]. - Key projects such as the "Large-scale Low-cost Titanium Alloy Production Line for Marine Engineering" and the "Upgrading and Industrialization of Metal Composite Materials for Clean Energy" have been completed, and the "Industrialization Project for High-performance Refractory Metal Materials for Aerospace and Nuclear Applications" has been initiated, further consolidating the company's industry position and enhancing core competitiveness [3]. - The company has established a military market committee and other departments to leverage overall advantages, strengthen resource sharing, systematically develop new products, and expand into new fields, resulting in 68 new customers and over 600 million yuan in orders for new products and fields in 2024 [3]. Catalysts - The acceleration of equipment construction in special fields downstream of titanium materials and the construction of nuclear power projects are expected to serve as catalysts for growth [4].