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Tiangong International Company (0826) Fair Value & Analysis

Basic Materials · HK · Market cap HK$9.7B

TI Tiangong International Company 0826 · HK
PriceHK$2.95
Fair ValueHK$2.22
Upside-24.6%
Quality50/100
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Weak Growth
Thin margins · 8.5% net margin
Low debt · negative free cash flow
1.50% dividend yield
Mixed vs. peers (6/13)
Narrow moat 37/100
Evidence: Medium Range HK$2.01 – HK$2.22 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 2 days ago

Share price −13.6% over the past month.

A solid business, but screening 25% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$2.22). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The models converge in a tight band (HK$2.01 to HK$2.22), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

HK$4.96 HK$1.33 Fair Value HK$2.22 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.33 – HK$4.96 · fair‑value band HK$2.01 – HK$2.22 · the HK$2.95 price screens above the HK$2.22 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tiangong International Company (0826) currently trades at HK$2.95, while our model-based Fair Value estimate is HK$2.22, implying the stock looks roughly 24.6% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Tiangong International Company generated revenue of HK$4.7B at a net margin of 8.5%. Revenue grew 2.9% year over year. It earns a return on equity of 5.7%. Net debt stands at HK$3.1B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.01 (bear case) to HK$2.22 (bull case); at HK$2.95, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 35% below its 52-week high and 54% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -22% fair-value upside, at -25%, 0826 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$2.08 HK$2.11 HK$2.02 76
ROIC Compounder HK$1.85 HK$2.13 HK$2.37 72
Growth-Adj P/E HK$1.45 HK$2.07 HK$2.69 68
All 14 models by family
DCF Models
Owner Earnings HK$1.85 HK$2.59 HK$3.61 31
Earnings-Based
Graham-Dodd HK$1.00 HK$2.38 HK$3.07 54
PEG = 1.0 HK$0.4100 HK$0.5900 HK$0.7700 46
EPV HK$1.85 HK$2.13 HK$2.37 59
Multiples
P/E Multiple HK$1.87 HK$2.50 HK$3.12 63
P/S Multiple HK$1.87 HK$2.50 HK$3.12 58
P/B Multiple HK$1.87 HK$2.50 HK$3.12 55
EV/EBIT HK$2.35 HK$3.11 HK$3.86 53
EV/EBITDA HK$2.81 HK$3.72 HK$4.63 54
EV/Revenue HK$1.91 HK$2.69 HK$3.47 43
Asset-Based
NCAV (Graham) HK$1.36 HK$1.83 HK$2.73 50
Economic Profit
Residual Income HK$2.08 HK$2.11 HK$2.02 76
ROIC Compounder HK$1.85 HK$2.13 HK$2.37 72
Growth Earnings
Growth-Adj P/E HK$1.45 HK$2.07 HK$2.69 68

Widest divergence: DCF Models (HK$2.59) versus Asset-Based (HK$1.83). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$4.7B
Revenue growth (YoY) +2.9%
Net margin 8.5%
Return on equity 5.7%
Free cash flow −HK$34.3M FY2025
P/E ratio 20.9 as of Jul 2, 2026
More key figures
Operating margin 12.4%
EPS (TTM) HK$0.0700
Dividend yield 1.5%
EPS growth (YoY) +12.8%
Net debt HK$3.1B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 47 · Market factors (momentum, volatility) 42

Profitability 27
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 16
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 14
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Tiangong International Company Limited, together with its subsidiaries, manufactures and sells alloy steel and related products. The company operates through Die Steel, High Speed Steel, Cutting Tools, Titanium Alloy, and Other segments. It provides tools and mould steel and powder metallurgy.

Full company description

Tiangong International Company Limited, together with its subsidiaries, manufactures and sells alloy steel and related products. The company operates through Die Steel, High Speed Steel, Cutting Tools, Titanium Alloy, and Other segments. It provides tools and mould steel and powder metallurgy. The company is also involved in the trading of goods and special steel; provision of investment management and advisory related services; processes and sells electric tool sets; manufacturing and selling of die steel and high-speed steel; and assembling and selling power tools kits. Its products are used in aviation, automotive, high-speed trains and petroleum chemical, railway construction, machinery manufacturing, home appliances, consumer electronics, aerospace, marine engineering, biological sciences, electronics, and other industries. The company operates in the People's Republic of China, North America, Europe, rest of Asia, and internationally. Tiangong International Company Limited was founded in 1981 and is based in Danyang, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tiangong International Company reported revenue of HK$4.7B in FY2025 versus HK$5.7B in FY2021, a compound −4.8%/yr. Reported net income was HK$400M in FY2025, compounding −11.9%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$4.7B
Latest YoY
−2.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.0%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.6%
Revenue −4.8%/yr
FY21 HK$5.7B
FY22 HK$5.1B
FY23 HK$5.2B
FY24 HK$4.8B
FY25 HK$4.7B
Net income −11.9%/yr
FY21 HK$664M
FY22 HK$504M
FY23 HK$370M
FY24 HK$359M
FY25 HK$400M
Character of growth · EPS growth decomposed (2014-2025) +3.5 % p.a.
Revenue per share +0.2 pp

of which total revenue +2.9 pp · buybacks/dilution −2.8 pp

EBIT margin +1.9 pp
Tax rate +0.9 pp
Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

0826 screens 25% overvalued. Compare with JSW Steel Limited →

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Cite: Fair Value Calculator (2026). "Tiangong International Company Fair Value". https://www.fairvalue-calculator.com/stock/0826

Peer Group

Steel · 380 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Above median
Fair Value upside −25% · Below median
Return on equity (TTM) 6% · Above median
Return on assets 2% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 12% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.13× · Higher than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 20.9× · Pricier than median
P/B 1.30× · Pricier than median
P/S (TTM) 2.05× · Pricier than 75% of peers
EV/EBITDA 11.0× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 1 · sector 15
FUTURE 15 · sector 5
PAST 23 · sector 16
HEALTH 94 · sector 95
DIVIDEND 30 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
JSW Steel Limited JSWSTEEL ₹1,269 ₹1,140 -10%
Tata Steel Limited TATASTEEL ₹186.20 ₹145.39 -22%
China Steel Corporation 2002A 37.25 TWD 8.74 TWD -77%
POSCO Holdings 005490 325,000 KRW 155,270 KRW -52%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,838 ARS +16%
Jindal Steel Limited JINDALSTEL ₹1,112 ₹516.27 -54%
Lloyds Metals and Energy Limited LLOYDSME ₹1,894 ₹771.10 -59%
Gerdau S.A GGBN 83.50 MXN 39.22 MXN -53%
Ternium S.A TXR 17,780 ARS 27,472 ARS +55%
NMDC Limited NMDC ₹85.00 ₹112.98 +33%

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Frequently asked questions

Is Tiangong International Company (0826) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.22 versus a price of HK$2.95, about −25% (overvalued).
What is the fair value of 0826?
Our model-based fair value for Tiangong International Company is HK$2.22 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.95.
What is the quality score of 0826?
Tiangong International Company has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tiangong International Company (0826)?
Tiangong International Company reported trailing-twelve-month revenue of about HK$4.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0826?
The net profit margin of Tiangong International Company is about 8.5%, meaning it keeps roughly 8.5% of revenue as net income. Based on the latest reported figures.
Does Tiangong International Company pay a dividend?
Tiangong International Company currently shows a dividend yield of about 1.50% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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