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

• Market Cap: HK$9.32B
• Dividend Yield: 1.9%
• Average Volume (3M): 30.45M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.50 ▲(11.11% 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

Balance Sheet Strength

A healthy equity ratio and manageable leverage provide durable financial flexibility in the cyclical steel sector. This balance-sheet strength supports capital expenditure, working-capital needs and withstands demand swings, lowering refinancing risk over coming quarters.

Integrated Product Mix

Vertical integration across premium steels and downstream cutting tools captures more value per unit, supports higher margins and creates customer stickiness. This product breadth insulates results from raw-material cycles and helps sustain revenue streams over the medium term.

Operational Efficiency and Margins

Stable gross and operating margins indicate effective cost controls and production efficiency. In a capital- and commodity-sensitive industry, consistent margin performance underpins cash generation potential and the ability to reinvest in tooling and process improvements.

Negative Factors

Weak Operating Cash Flow

Deteriorating operating cash flow limits free-cash-flow capacity, constraining capex, working-capital financing and strategic investments. In a capital-intensive manufacturing business this raises reliance on external funding and increases vulnerability during prolonged demand slowdowns.

Declining Revenue Trend

Material top-line contraction signals weakening end-market demand or market-share erosion in key industrial segments. Sustained revenue declines undermine scale economics, reduce pricing leverage and make it harder to cover fixed costs, pressuring margins and reinvestment ability.

Falling Returns and Profitability

Declining ROE and a slipping net margin indicate lower return on invested capital and reduced efficiency converting revenue into shareholder returns. Over time this can limit internal funding for growth, weaken competitive positioning, and strain stakeholder confidence.

Tiangong International Co. Ltd. Business Overview & Revenue Model

Company Description

Tiangong International Company Limited produces and sells die steel (DS), high speed steel (HSS), cutting tools, and titanium alloys. The company operates in five segments: DS, HSS, Cutting Tools, Titanium Alloy, and Trading of Goods. It researches, develops, manufactures, distributes, and sale of high speed and die steel related products, titanium related products, and carbide cutting tools related products. The company also trades in carbon steel, goods, cutting tools, and alloy steel. It operates in the People's Republic of China, North America, Europe, other Asian countries, and internationally. The company was founded in 1981 and is headquartered in Danyang, China.

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: 3.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.15 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.18, and above the 200-day MA of 2.54, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.66 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$9.32B	22.85	5.44%	1.90%	-10.53%	13.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0581	54 Neutral	HK$5.21B	18.74	1.16%	0.76%	-14.11%	―
0103	51 Neutral	HK$1.59B	75.63	1.06%	2.77%	-8.90%	-79.06%
0323	49 Neutral	HK$32.80B	-9.47	-8.13%	―	-10.10%	10.40%
0347	47 Neutral	HK$26.31B	-4.29	-8.39%	―	-9.09%	34.73%
1053	47 Neutral	HK$15.07B	-5.00	-12.42%	―	-14.20%	8.19%

Tiangong International Co. Ltd. Corporate Events

Tiangong International Ties Employee Share Options to Aggressive Revenue Growth Targets

Tiangong International has granted 30 million share options, equivalent to about 1.10% of its issued share capital, to its directors and employees under its existing share option scheme at an exercise price of HK$3.50 per share, above both the latest closing price and recent average trading levels. The options, most of which are allocated to employee participants, will vest only if the company delivers at least 25% year-on-year growth in consolidated audited revenue in each of 2026, 2027 and 2028, and if recipients remain employed, introducing performance- and tenure-linked incentives that aim to drive multi-year revenue expansion, align management with shareholders and potentially strengthen the Group’s competitive and operational focus through a structured clawback and vesting framework.

The most recent analyst rating on (HK:0826) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tiangong International Co. Ltd. stock, see the HK:0826 Stock Forecast page.

Tiangong Subsidiary Joins Fusion Materials Joint Lab to Develop High-Boron and Neutron Shield Steels

Tiangong International Company Limited announced that its indirectly owned subsidiary, Jiangsu Tiangong Aihe Technology Company Limited, has been approved to join a joint laboratory focused on the research and development of fusion advanced metallic materials led by the Institute of Energy of the Hefei Comprehensive National Science Center. Under the five-year agreement, TG Aihe will concentrate on developing large-scale powder metallurgy 304B7 high-boron steel for tonnage production and a new neutron shield steel, while the Institute of Energy will define fusion reactor material requirements and conduct performance evaluations, with the collaboration expected to enrich Tiangong’s powder metallurgy business, improve capacity utilization, strengthen its competitiveness in controlled nuclear fusion and other high-tech downstream applications, and carry limited financial risk despite uncertainties in R&D outcomes.

The most recent analyst rating on (HK:0826) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tiangong International Co. Ltd. stock, see the HK:0826 Stock Forecast page.

Tiangong International Clarifies CEO Remuneration for 2021–2023

Tiangong International has issued a supplemental announcement clarifying the emoluments of its chief executive officer, Zhu Zefeng, for the financial years 2021, 2022 and 2023, in order to comply with Hong Kong Main Board Listing Rules. The company disclosed detailed figures for Zhu’s salaries, allowances and benefits in kind in each year, including separate disclosure for his roles as CEO and, from June 2023, as both executive director and CEO, while confirming that all other information in the previously published annual reports remains unchanged, thereby enhancing transparency in executive remuneration for investors and other stakeholders.

The most recent analyst rating on (HK:0826) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tiangong International Co. Ltd. stock, see the HK:0826 Stock Forecast page.

Tiangong International Buys Back 5.29% Stake in TG Tools From Private Investors

Tiangong International has agreed to buy back a total of 5.29% of equity in its subsidiary TG Tools from existing financial investors Zhenjiang Qianyuan and Goldstone Advanced Materials Fund, who had originally subscribed to the stake in 2020. Under the equity transfer agreements signed on 7 January 2026, TG New Materials will acquire 1.76% from Zhenjiang Qianyuan for RMB179.64 million and 3.53% from Goldstone Advanced Materials Fund for RMB364.82 million, at pricing based on a 4% annual interest rate. The move, prompted by the investors’ intention to exit, is aimed at simplifying TG Tools’ shareholding structure and taking advantage of a lower financing cost environment, and constitutes a discloseable transaction under Hong Kong listing rules, requiring announcement but not shareholder approval.

The most recent analyst rating on (HK:0826) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Tiangong International Co. Ltd. stock, see the HK:0826 Stock Forecast page.