Core Viewpoint - Changjiang Securities research report indicates that Western Superconducting Technologies is a high-quality leader in the titanium material industry, with strong long-term realization potential and considerable profitability, driven by high-profit elasticity of high-temperature alloys and vast growth space for superconducting products [1] Group 1: Business Performance - Titanium alloy business has consistently supported the company's steady growth in performance, despite short-term fluctuations in growth rates due to downstream delivery schedules in 2023-2024 [1] - Long-term outlook for the titanium alloy business remains positive, expected to maintain stable growth and effectively support the company's performance [1] Group 2: Superconducting Products - The superconducting products business has experienced rapid development, with significant improvements in both product scale and profitability [1] - The growth potential for superconducting products is vast, and the company is expected to achieve a new level of profitability due to its first-mover advantage and technological accumulation, creating high barriers to entry [1] Group 3: Overall Company Outlook - As a leading player in the new materials sector, the company is positioned for a rapid release of performance across its three business segments, highlighting its long-term investment value [1]

Investment Rating - The report maintains a "Positive" investment rating for the industry [10] Core Insights - The non-ferrous metal sector continues to show strong performance, with basic metals experiencing a net profit growth of 27% year-on-year in the first half of 2025, driven by a rebound in manufacturing and expectations of interest rate cuts [4][19] - Gold maintains a bullish market trend, with significant profit elasticity due to rising production capacity and price increases [5][19] - Energy metals show mixed performance, with lithium prices under pressure while cobalt prices improve, leading to better profitability for cobalt-related companies [6][19] - Rare earth materials are recovering as export controls enhance their strategic value, with prices stabilizing after previous declines [7][19] - Titanium materials are gradually improving in profitability, awaiting a recovery in high-end demand [8][19] Summary by Sections Basic Metals - In the first half of 2025, the basic metals sector achieved a net profit of 703.79 billion yuan, a 26.67% increase year-on-year, with a revenue growth of 4.24% [21][30] - The second quarter of 2025 saw a net profit of 376.44 billion yuan, up 14% year-on-year and 15% quarter-on-quarter, attributed to easing tariff pressures and strong industrial performance [4][37] Gold - The gold sector experienced a revenue increase of 25.94% year-on-year in the first half of 2025, with net profit soaring by 58.95% [14][19] - In Q2 2025, gold prices reached new highs, driven by trade conflicts and recession expectations, leading to significant profit elasticity for gold mining companies [5][19] Energy Metals - The energy metals sector faced a decline in lithium prices, with a year-on-year revenue decrease of 4.76% in the first half of 2025, while cobalt prices improved significantly [6][19] - Cobalt prices are recovering due to supply constraints from the Democratic Republic of Congo, which has implemented export bans [6][19] Rare Earth Materials - The rare earth sector saw a revenue increase of 12.74% year-on-year in the first half of 2025, with net profit growth of 260.72% [19][21] - Export controls and new regulations are expected to enhance the strategic value of rare earth materials, supporting price recovery [7][19] Titanium Materials - The titanium sector reported a slight revenue decrease of 0.90% year-on-year in the first half of 2025, with net profit down by 4.04% [19][21] - There is an expectation of improved profitability as high-end demand begins to recover [8][19]

Investment Rating - The report rates the non-ferrous metals industry as "Positive" for 2024 [4] Core Insights - The non-ferrous metals industry is expected to see profit improvement in 2024, with the characteristic of "resource supremacy" becoming more pronounced. Supply from the mining sector remains rigid, while companies are cautious with capital expenditures amid increasing macroeconomic volatility and export policy restrictions from various countries, leading to enhanced supply constraints. The demand side shows a fragmented demand landscape under the backdrop of de-globalization, with re-industrialization in Europe and the US and economic growth in emerging markets being the main demand drivers. Revenue and net profit for the non-ferrous sector are projected to grow slightly, indicating a gradual improvement in industry prosperity. Resource-based companies, particularly in copper, gold, aluminum, tin, and tungsten, are expected to perform better, with a growing focus on resource scarcity and strategic importance [19][22][26]. Summary by Sections 1. Industry Overview - The non-ferrous metals sector is projected to achieve a revenue of CNY 3.47 trillion in 2024, representing a year-on-year growth of 5.86%, and a net profit of CNY 138.41 billion, reflecting a slight increase of 1.77% [22][26]. 2. Market Dynamics - The report highlights that industrial metals experienced significant price fluctuations due to US trade tariffs in early April, but prices have since rebounded as negotiations exceeded market expectations. Small metals continue to perform well, with tungsten prices reaching new highs amid strengthened domestic export controls [20][21]. 3. Policy Changes - Domestic measures to tighten resource export controls have been noted, alongside international collaborations for mineral investment and development. Key actions include China's crackdown on strategic mineral smuggling, Australia's commitment to establishing strategic reserves for critical minerals, and various agreements between countries to enhance mining cooperation [20][21]. 4. Company Performance - Chinese listed copper companies have shown a significant increase in resource and reserve volumes, with a 27% year-on-year increase in resource volume and a 25% increase in reserves. Notable companies like Zijin Mining and Minmetals Resources have made substantial acquisitions and exploration investments to secure resource safety [22][28][32].

Group 1 - Jiangsu Tiangong Technology Co., Ltd. (Tiangong Co.) has become the first new company listed on the Beijing Stock Exchange in 2025 and the first "H-share A-share" company to list on the exchange [1] - Tiangong Co. focuses on the research, production, and sales of titanium and titanium alloy materials, which are considered strategic materials for both national defense and civilian technology development [1][2] - The company plans to raise funds to build a production line with an annual capacity of 3,000 tons of high-end titanium and titanium alloy rods and wires, increasing its total capacity from 7,000 tons to 10,000 tons [4] Group 2 - The titanium industry is experiencing a shift from rough processing to precision and deep processing, with significant applications in consumer electronics, 3D printing, and other fields [2][3] - In 2023, China's titanium processing material consumption reached 148,400 tons, with over 70% used in the chemical, salt, and aerospace sectors; the consumer electronics sector saw a growth rate of 43.76% year-on-year [3] - Tiangong Co. has developed over 10 types of titanium materials and has gained recognition from globally renowned manufacturers in the consumer electronics sector [3] Group 3 - Tiangong Co. aims to enhance its research and development capabilities and diversify its titanium product offerings to meet market demands [5] - The company emphasizes the importance of technological innovation to strengthen its competitive edge and contribute to the advancement of high-end manufacturing [5] - In 2024, Tiangong Co. plans to invest 34.41 million yuan in R&D, accounting for 4.29% of its total revenue, reflecting its commitment to developing new production capabilities [5]

Company Overview - Tian Gong Co., Ltd. is recognized as a national-level specialized and innovative "little giant" in the titanium alloy sector, primarily engaged in the research, production, and sales of titanium and titanium alloy materials [1][2] - The company processes titanium sponge into various titanium products, including titanium plates, pipes, ingots, and rods, which are widely used in high-tech industries such as consumer electronics, aerospace, marine engineering, chemical energy, biomedical, and 3D printing [1][2] Business Performance - The company has established a deep partnership with Changzhou Soloman, a key player in Apple's supply chain, leading to significant revenue growth [2] - In 2024, sales to Soloman and its affiliates are projected to reach 575 million yuan, a fivefold increase from 2022, with revenue contribution rising from 27.88% to 71.72% [2] - The company is also expanding its product offerings in aerospace and medical applications, having obtained relevant certifications and achieving breakthroughs in high-end applications [2] Industry Insights - The titanium processing industry in China has shown stable growth, with production increasing from 48,600 tons in 2015 to 159,100 tons in 2023, representing a compound annual growth rate (CAGR) of 15.97% [3] - Sales volume in the same period grew from 43,700 tons to 148,400 tons, with a CAGR of 16.51% [3] Financial Performance - The company reported revenues of 383 million yuan, 1.035 billion yuan, and 801 million yuan for the years 2022, 2023, and 2024, with year-on-year growth rates of 35.65%, 170.05%, and -22.59% respectively [3] - Net profit attributable to shareholders was 70 million yuan, 170 million yuan, and 172 million yuan for the same years, with growth rates of 244.00%, 142.57%, and 1.57% respectively [3] IPO and Strategic Investors - Tian Gong Co., Ltd. plans to issue 69 million shares, raising 272 million yuan, with the funds allocated for a project to build a production line for 3,000 tons of high-end titanium and titanium alloy rods and wires [3] - The company has attracted a prestigious group of 12 strategic investors, with 30% of the shares allocated for strategic placement, indicating strong institutional confidence [4] Market Sentiment and Valuation - The company is expected to perform well on its first trading day, with potential price increases based on recent trends in new stock listings [5][6] - The dynamic price-to-earnings ratio at the time of issuance is 14.8 times, significantly lower than the average of 51 times for comparable companies, suggesting a strong valuation advantage [6][7] - The initial offering price of 3.94 yuan is relatively low compared to recent new listings, which may lead to speculative trading [7][8]

Core Viewpoint - The company, Hunan Xiangtou Jintian Titanium Industry Technology Co., Ltd. (referred to as "Jintian Titanium"), reported steady growth in revenue and net profit for the year 2024, focusing on high-end titanium materials to meet market demand in aerospace, marine engineering, and shipbuilding sectors [2][3] Financial Performance - The company achieved an operating income of approximately 808 million yuan, representing a year-on-year increase of 0.91% - The net profit attributable to shareholders was about 152 million yuan, reflecting a year-on-year growth of 3.04% - A cash dividend of 0.84 yuan per 10 shares (including tax) is proposed for all shareholders [2] Research and Development - Jintian Titanium's R&D expenses have been increasing annually, from 27.65 million yuan in 2020 to 52.77 million yuan in 2024, nearly doubling in five years - The company has rapidly increased its intellectual property holdings, with a total of 91 invention patents applied for and 43 granted, along with 36 utility model patents applied for and granted [3] Market Position and Strategy - The company is targeting the high-end titanium market, which is characterized by a significant supply shortage in China, particularly in aerospace and marine engineering sectors - The domestic low-end titanium market suffers from overcapacity, with utilization rates below 60%, leading to low profit margins and insufficient R&D investment in low-end production [2] - Jintian Titanium has established a production capacity of 5,000 tons per year for high-performance titanium and titanium alloy processing materials and is advancing its IPO fundraising project for high-end titanium alloy industrialization [3] Industry Outlook - The demand for high-end titanium materials in aerospace is rapidly increasing, and there is substantial growth potential for titanium usage in shipbuilding compared to foreign markets - The rise of marine equipment and engineering presents significant opportunities for Jintian Titanium in niche markets [3]

Core Viewpoint - Jin Tian Titanium Industry (688750.SH) has released its first annual report post-IPO, showing stable growth in revenue and net profit, alongside a strategic focus on high-end titanium materials and expanding into aerospace and marine markets [1][10]. Financial Performance - In 2024, the company achieved operating revenue of 808 million yuan, a year-on-year increase of 0.91% - The net profit attributable to shareholders was 152 million yuan, reflecting a growth of 3.04% - The gross margin for the main business reached 38.85%, up by 4.4 percentage points from 2023 - The company plans to distribute a cash dividend of 0.84 yuan per share, totaling 38.85 million yuan [1]. Market Position and Product Focus - Jin Tian Titanium Industry specializes in the R&D, production, and sales of high-end titanium and titanium alloy materials, with key products including titanium and titanium alloy bars, forgings, and components [3]. - The company ranks third in market share within the high-end titanium alloy sector, following Western Superconducting and BaoTi [3]. Strategic Development - The company is actively engaging with national major equipment demands, participating in the development of models in aerospace and aviation [4]. - Jin Tian Titanium has successfully developed over 10 new product grades, meeting the needs of more than 40 model equipment during the reporting period [4]. Expansion into New Markets - Jin Tian Titanium is expanding into marine and civil aviation sectors, successfully delivering titanium alloy gas cylinders and securing various product orders [5]. - The company is making progress in the domestic large aircraft project and is steadily advancing in the international aviation market [5]. R&D Investment and Innovation - In 2024, the company invested 52.78 million yuan in R&D, an increase of 8.56% year-on-year, with a R&D expense ratio of 6.53% [8]. - The company has a dedicated R&D team of 75 members, applying for 15 invention patents and participating in the formulation of industry and national standards [9]. Capacity Expansion and Future Outlook - The company’s production capacity has reached 5,000 tons per year, with ongoing projects expected to add 3,000 tons per year, representing a 60% increase in capacity [11]. - The growth in capacity is anticipated to support future business expansion and performance growth, driven by a dual focus on technology and market demand [10].