China's Tiangong International's H1 revenue and profit rise, aided by price pass-through

Tiangong International

28/08/2026 13:54

Overview
China-based steel tools maker's revenue rose 5.5% yr/yr for six months to June 2026
Profit attributable to equity shareholders increased 11.2% yr/yr
Gross profit margin improved to 24.8% from 18.9%

Outlook
The Group targets annual production and sales of 300 mln PCB drill bits and 100 mln end mills when its PCB venture reaches full operation

Result Drivers
TUNGSTEN PRICE PASS-THROUGH – HSS and cutting-tools growth was driven by higher tungsten prices passed to customers and cemented-carbide volume production
TITANIUM ORDER DELAYS – Titanium-alloy revenue fell 35.1% as downstream consumer-electronics production-plan changes delayed wire deliveries
FX REVERSAL – USD and EUR depreciation caused a RMB64.5 mln FX loss, versus a RMB129.7 mln gain a year earlier

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 2.47 bln
 
H1 Net Income Attributable
 
RMB 226.3 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Tiangong International Co Ltd is HK$5.45, about 78.8% above its August 28 closing price of HK$3.05
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 28 - Chu Kong Steel Pipe's H1 revenue drops sharply as Middle East tensions hurt deliveries
Aug 27 - China's Aowei Holding H1 revenue rises, helped by iron ore prices, volumes
Aug 26 - Hong Kong's Golik Holdings H1 revenue falls on lower steel and concrete product deliveries

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)