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

• Market Cap: HK$8.58B
• Dividend Yield: 1.83%
• Average Volume (3M): 30.45M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.73
• 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: 44,114,600
• 30 Day Avg. Volume: 30,447,205
• 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$4.39
• Price Target Upside: 42.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.50 ▲(13.64% Upside)

The overall stock score of 68 reflects strong technical momentum and a solid balance sheet. However, challenges in cash flow management and modest valuation metrics slightly temper the outlook. Addressing cash flow issues could enhance financial stability and improve the stock's attractiveness.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a healthy equity ratio provides a solid foundation for future growth and enhances financial stability.

Operational Efficiency

Stable EBIT and EBITDA margins indicate effective cost management and operational efficiency, which can support long-term profitability.

R&D Investment

Investment in R&D fosters innovation, helping to maintain competitive pricing and attract new customers, supporting sustained revenue growth.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth suggests difficulties in expanding market share, potentially impacting long-term market position and competitiveness.

Cash Flow Management

Weak operating cash flows can limit the company's ability to invest in growth opportunities and meet financial obligations, affecting financial health.

Declining ROE

A declining ROE indicates reduced efficiency in generating profits from equity, which could affect investor confidence and long-term growth potential.

Tiangong International Co. Ltd. Business Overview & Revenue Model

Company Description

Tiangong International Co. Ltd. (0826) is a prominent player in the metal manufacturing sector, primarily specializing in the production of high-speed steel and various cutting tools. The company operates within the broader industrial materials and tools market, serving a diverse range of industries including automotive, aerospace, and machinery manufacturing. Tiangong's core products include tool steels, carbide tools, and precision cutting tools, which are essential in machining and manufacturing processes.

How the Company Makes Money

Tiangong International generates revenue through the sale of its cutting tools and high-speed steel products to various industries. The company's revenue model is based on direct sales to manufacturers and distributors, with a significant portion of income derived from long-term contracts with major clients in the automotive and machinery sectors. Additionally, Tiangong benefits from strategic partnerships with global distributors, enhancing its market reach and sales volume. The company also invests in research and development to innovate its product offerings, which helps maintain competitive pricing and attract new customers, thereby boosting revenue.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65B	4.83B	5.16B	5.07B	5.74B	5.22B
Gross Profit	868.95M	983.54M	1.14B	1.15B	1.41B	1.21B
EBITDA	690.66M	808.09M	1.05B	839.85M	1.15B	1.00B
Net Income	377.97M	358.76M	370.21M	503.54M	664.37M	537.02M
Balance Sheet
Total Assets	13.77B	13.29B	13.56B	13.36B	12.56B	11.20B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.74B	2.06B	2.56B	3.11B	2.05B
Total Debt	3.46B	3.28B	2.90B	2.90B	2.64B	3.37B
Total Liabilities	5.96B	5.83B	6.18B	6.22B	5.67B	5.56B
Stockholders Equity	7.27B	7.09B	7.06B	6.86B	6.63B	5.47B
Cash Flow
Free Cash Flow	99.76M	212.47M	-244.03M	-192.75M	88.83M	831.26M
Operating Cash Flow	373.87M	501.76M	55.13M	303.55M	542.30M	1.31B
Investing Cash Flow	-113.62M	450.41M	-223.41M	-271.29M	-810.92M	-1.00B
Financing Cash Flow	-96.34M	-622.01M	-304.42M	-186.41M	799.56M	122.11M

Tiangong International Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.08
• 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 3.08 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 3.02, and above the 200-day MA of 2.33, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 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	68 Neutral	HK$8.58B	21.04	5.44%	1.83%	-10.53%	13.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0581	54 Neutral	HK$4.99B	17.94	1.16%	0.75%	-14.11%	―
0323	54 Neutral	$28.88B	-8.28	-8.13%	―	-10.10%	10.40%
0103	51 Neutral	HK$1.88B	89.34	1.06%	2.43%	-8.90%	-79.06%
1053	42 Neutral	HK$14.12B	-4.72	-12.42%	―	-14.20%	8.19%
0347	41 Neutral	$24.02B	-4.00	-8.39%	―	-9.09%	34.73%

Tiangong International Co. Ltd. Corporate Events

Tiangong International’s TG Tech Releases Q3 2025 Highlights

Tiangong International Co. Ltd. has released highlights from the Third Quarterly Report 2025 for its subsidiary, Jiangsu Tiangong Technology Company Limited. The report confirms the authenticity, accuracy, and completeness of its financial disclosures, with no objections from the board or senior management. This announcement reinforces the company’s commitment to transparency and could positively impact its market position and stakeholder confidence.

Tiangong International Secures HK$78 Million Loan with Shareholding Conditions

Tiangong International Company Limited has entered into a facilities agreement with a Hong Kong licensed bank for a dividend loan facility amounting to HK$78,207,500. The agreement imposes a specific performance obligation on the controlling shareholders, Mr. Zhu Xiaokun and Mr. Zhu Zefeng, to maintain at least 45% shareholding in the company. Failure to comply with this obligation could result in the bank cancelling the commitments and demanding immediate repayment of all outstanding amounts.