Tiangong International Co. Ltd. (0826) AI Stock Analysis

• Market Cap: HK$7.08B
• Dividend Yield: 2.21%
• Average Volume (3M): 64.33M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.72
• Revenue Growth: -10.53%
• EPS Growth: 13.93%
• Country: HK
• Employees: 3,527
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.08
• Shares Outstanding: 2,725,000,000
• 10 Day Avg. Volume: 29,051,061
• 30 Day Avg. Volume: 64,330,120
• PEG Ratio: 0.00
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 22.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$3.04
• Price Target Upside: 17.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$3.00 ▲(16.28% Upside)

Tiangong International Co. Ltd. has a strong technical outlook with bullish momentum, but the stock is overbought, which poses a risk of a pullback. Financial performance is solid, though cash flow management needs improvement. The valuation suggests the stock may be overvalued, which could limit upside potential.

Tiangong International Co. Ltd. Business Overview & Revenue Model

Company Description

Tiangong International Co. Ltd. (0826) is a leading manufacturer and supplier in the steel industry, particularly specializing in the production of high-speed steel (HSS) and die steel. The company operates primarily in the sectors of steel production, cutting tools, and other related metallurgical products. Tiangong International is known for its high-quality products that cater to both domestic and international markets, serving various industries such as automotive, aerospace, and construction.

How the Company Makes Money

Tiangong International Co. Ltd. makes money through the production and sale of high-speed steel (HSS), die steel, and related metallurgical products. The company generates revenue by supplying these materials to various industrial sectors, including automotive, aerospace, and construction. Key revenue streams include the direct sales of steel products and cutting tools, both domestically and internationally. The company's earnings are further supported by strategic partnerships and collaborations with major players in these industries, which help to expand its market reach and enhance its product offerings. Additionally, Tiangong International may engage in research and development activities to innovate and improve their product lines, potentially leading to new revenue opportunities.

Tiangong International Co. Ltd. Financial Statement Overview

Summary

Tiangong International Co. Ltd. demonstrates solid profitability and operational efficiency, but faces challenges in revenue growth and cash flow management. The balance sheet remains strong, supporting future growth opportunities. Addressing cash flow issues should be a priority to enhance financial stability.

Income Statement

The company shows decent profitability with a stable gross profit margin. However, the net profit margin has slightly decreased. Revenue growth is inconsistent, showing a decline in recent years, which may indicate challenges in expanding market share. EBIT and EBITDA margins are stable, reflecting good operational efficiency.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, indicating a strong asset base. The debt-to-equity ratio is manageable, showing a balanced approach to leveraging. ROE has declined, suggesting reduced profitability in relation to equity.

Cash Flow

Operating cash flows have weakened significantly, impacting free cash flow generation. The cash flow to net income ratios are not available for the recent period due to missing data, indicating potential cash management challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.83B	5.16B	5.07B	5.74B	5.22B
Gross Profit	983.54M	1.14B	1.15B	1.41B	1.21B
EBITDA	808.09M	1.05B	839.85M	1.15B	1.00B
Net Income	358.76M	370.21M	503.54M	664.37M	537.02M
Balance Sheet
Total Assets	13.29B	13.56B	13.36B	12.56B	11.20B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.06B	2.56B	3.11B	2.05B
Total Debt	3.28B	2.90B	2.90B	2.64B	3.37B
Total Liabilities	5.83B	6.18B	6.22B	5.67B	5.56B
Stockholders Equity	7.09B	7.06B	6.86B	6.63B	5.47B
Cash Flow
Free Cash Flow	212.47M	-244.03M	-192.75M	88.83M	831.26M
Operating Cash Flow	501.76M	55.13M	303.55M	542.30M	1.31B
Investing Cash Flow	450.41M	-223.41M	-271.29M	-810.92M	-1.00B
Financing Cash Flow	-622.01M	-304.42M	-186.41M	799.56M	122.11M

Tiangong International Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0826, the sentiment is Positive. The current price of 2.58 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.32, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0826.

Tiangong International Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0826	69 Neutral	HK$7.08B	17.57	5.44%	2.21%	-10.53%	13.93%
0103	67 Neutral	2.19B	103.80	1.77%	2.09%	-8.90%	-78.99%
0323	54 Neutral	28.71B	-4.91	-20.03%	―	-17.60%	-1421.08%
0581	50 Neutral	4.73B	17.80	0.67%	0.75%	-14.11%	0.00%
0347	44 Neutral	25.19B	-3.37	-14.94%	―	-11.19%	-21.13%
1053	42 Neutral	14.64B	-4.25	0.00%	―	-24.68%	-51.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tiangong International Co. Ltd. Corporate Events

Tiangong International Schedules Board Meeting for Interim Results

Tiangong International Co. Ltd. has announced that its Board of Directors will convene a meeting on August 25, 2025, to approve the company’s interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, which could impact investor sentiment and the company’s market position.

Tiangong International Secures HK$78.48 Million Loan with Shareholding Condition

Tiangong International Company Limited, a company incorporated in the Cayman Islands, has entered into a facilities agreement with a Hong Kong licensed bank for a dividend loan facility amounting to approximately HK$78,480,000. The agreement imposes a specific performance obligation on the company’s controlling shareholders, Mr. Zhu Xiaokun and Mr. Zhu Zefeng, requiring them to maintain at least 45% shareholding in the company. Failure to comply with this obligation could result in the cancellation of the commitments and the immediate repayment of all outstanding amounts.

Tiangong International Enters Strategic Partnership with Hengerda

Tiangong International Co. Ltd. has entered a strategic cooperation framework agreement with Hengerda New Materials to jointly develop and apply powder high-speed steel materials for sawing tools. This partnership aims to enhance industry leadership and promote technological advancements. Hengerda will support Tiangong with testing platforms and technical expertise, while Tiangong will become a primary supplier of raw materials to Hengerda starting in 2026. The agreement also includes plans for Tiangong to procure sawing equipment from Hengerda and collaborate on precision cutting tools, strengthening their supply chain integration and competitive edge in the industry.

Tiangong International Co. Ltd. Announces Successful AGM Resolutions

Tiangong International Co. Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on June 19, 2025. Key resolutions included the approval of the audited financial statements for the year ending December 31, 2024, the declaration of a final dividend, and the re-election of several directors. The company also re-appointed KPMG as its auditors and granted mandates for share allotment and repurchase. The resolutions were passed with overwhelming support, indicating strong shareholder confidence in the company’s governance and strategic direction.

Tiangong International Announces Final Dividend for 2024

Tiangong International Co. Ltd. has announced a proposed final cash dividend of RMB 0.0263 per share for the financial year ending December 31, 2024, with payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09361. This announcement reflects the company’s commitment to returning value to its shareholders, and it may positively impact investor sentiment and the company’s market positioning.

Tiangong International Completes Successful TG Tech Public Offering

Tiangong International Co. Ltd. announced the successful completion of the public offering of TG Tech on the Beijing Stock Exchange, with the over-placing option fully executed. The company issued 9,000,000 new TG Tech shares to 12 placees at RMB3.94 per share, resulting in Tiangong International holding 67.63% of the enlarged issued share capital of TG Tech, a slight decrease of 0.94%. This development marks a significant milestone for Tiangong International, potentially enhancing its market presence and financial standing.