Q3 deducted non-net profit increased 109 times year-on-year, and Tiangong Co., Ltd. (920068), which reached an inflection point in performance, opened a gold layout window

Tiangong Co., Ltd. (920068), a leading player in the field of titanium alloys, ushered in an inflection point in performance.

On the evening of October 29, Tiangong Co., Ltd. released the “2026 Third Quarter Report”. According to the report, the company's revenue for the first three quarters was 372 million yuan, and net profit after deducting non-return to mother was 294.16,200 yuan. Although the two indicators are still declining compared to the same period in 2025, when broken down by quarter, the reversal trend in Tiangong Co., Ltd.'s performance is already very obvious.

According to the data, Tiangong Co., Ltd.'s revenue for the first three quarters of 2026 was 104 million, 126 million yuan, and 143 million yuan, respectively, and net profit deducted from mother during the period was -275,500, 10.253 million, and 19.4387 million, respectively. Both revenue and net profit have shown a clear month-on-month growth trend since the second quarter.

However, the most critical point is that the third quarter was not only a “month-on-month recovery,” but also achieved a true year-on-year and month-on-month resonance. Unlike the year-on-year decline in the first and second quarters, Tiangong Co., Ltd.'s revenue for the third quarter increased 13.04% month-on-month and surged 74.43% year-on-year; while net profit without return to mother increased by 89.60% month-on-month, it also soared 10,962.76% year over year.

The simultaneous strength of revenue and profit in terms of year-on-month and month-on-month means that Tiangong Co., Ltd.'s performance recovery has switched from a “rebound trend” to a “strong improvement.” Behind this change is the direct catalyst provided by the stocking rhythm of Apple's first folding-screen iPhone Duo. Although the model was officially pre-ordered on October 16, industrial chain preparation usually started one quarter early. Tiangong Co., Ltd.'s performance in the third quarter exceeded expectations, which corresponded to the actual implementation of this pre-demand on the supply chain side.

And the simultaneous restoration of gross margin further supports this logic. According to the data, from the first quarter to the third quarter of 2026, the gross margins of Tiangong Co., Ltd. were 7.03%, 16.07%, and 22.60% respectively, showing an accelerated upward trend from quarter to quarter. Among them, the gross profit margin of 22.60% for a single quarter in the third quarter was due to the impact of consumer electronics orders, which have gradually resumed.

This means that Tiangong Co., Ltd.'s share of deliveries of high-value-added titanium wire products is recovering substantially, rather than the impact of price cuts in low-margin categories. The obvious improvement in the profit structure is more signalling than the revenue growth rate itself.

However, judging from multiple dimensions such as the iPhone Duo's titanium content, expected sales volume, and driving industry trends, the impressive third-quarter earnings report may only be a new starting point for Tiangong Co., Ltd. to return to its growth trajectory.

According to Apple's official disclosure, the iPhone Duo has three “titanium” parts. One is the fuselage frame/middle frame, which is made of grade 5 titanium and is the main stress frame of the whole machine; the second is the hinge case, which is the first large structural part of the Apple phone to be manufactured using a 3D printing process; the third is a titanium support plate at the bottom of the inner screen to disperse bending stress. In addition to this, supply chain dismantling added that some of the shaft connecting arms, small titanium alloy shaft parts (MIM process), and shaft gears inside the hinge also involved titanium.

Compared with the pure titanium middle frame scheme of the previous iPhone 15/16 Pro, the iPhone Duo's titanium incremental structure is more clear. According to supply chain estimates, the amount of titanium used in the iPhone Duo stand-alone is about 2 to 3 times the amount of titanium used in previous straight-plate iPhones, and the amount of stand-alone consumables has jumped several times.

Based on this, the rise in sales is expected to turn the increase in stand-alone machines into a total explosion. According to data released by Goldman Sachs Greater China Technology Team after the iPhone Duo pre-order began, it is estimated that the iPhone Duo will sell 13 million units in 2026 and 33 million units by 2027 under the benchmark situation; under optimistic circumstances, it is estimated that the iPhone Duo will sell 35 million units in 2026, and the sales volume is expected to reach 66 million units in 2027.

The point of difference between the two scenarios is not on the demand side, but on the supply side — the difference stems from different assumptions about how fast the yield of key components such as hinges and panels can climb. This means that even if initially limited by yield issues, the actual shipment falls within the benchmark scenario, suppressed demand will not disappear, and deferred orders will eventually be made up after capacity is released. Benchmarks and optimism are not two mutually exclusive outcomes, but rather the pace of fulfillment of the same demand curve under different supply conditions.

However, if you only focus on Apple's shipments, you may underestimate the room to imagine that the folding screen wave triggered by the iPhone Duo will expand demand for titanium. The significance of iPhone Duo is to bind “folding screen+titanium alloy+3D printing” into a reproducible process paradigm. Once yield and cost are met, the follow-up of Android manufacturers such as Honor, OPPO, and Samsung will turn single-brand innovation into industry-level material upgrades.

Under this industry trend, the demand curve will no longer be determined by a single company's sales volume, but will be raised by “proportion of models using titanium × amount of titanium used in stand-alone machines”. According to CICC estimates, the market space for Apple's 3D printing titanium materials and processing process alone is about 3.2 billion yuan in 2027 and will rise to 7.5 billion yuan in 2030. If the Android camp accelerates and follows up, the market space will expand significantly. This is reflected in the upstream titanium wire, titanium powder, and finishing process, which will obtain the pricing logic of “growth materials” rather than “cycle materials.”

And Tiangong Co., Ltd., which successfully opened up a closed loop in the entire industry chain from titanium alloy base materials to 3D printing powder, will benefit the most from this shift in pricing logic. The depth of its entire industry chain is the hardest bottom card for the company to overcome single-season fluctuations and achieve medium- to long-term growth.

If we take Tiangong Co., Ltd.'s performance in supplying titanium alloy middle frame materials for the iPhone 15 Pro series in 2023 as a reference, the increase in performance brought about by the iPhone Duo in this round has a historical anchor point that can be compared.

In 2023, Tiangong Co., Ltd.'s annual revenue exceeded 1 billion yuan and net profit to mother reached 170 million yuan, verifying the remarkable elasticity of titanium emissions in consumer electronics. However, the iPhone Duo now uses several times the amount of titanium used as a stand-alone tablet, and the expansion in demand for titanium caused by the wave of folding screens is even less comparable to that year.

Furthermore, in addition to consumer electronics, the layout of Tiangong Co., Ltd. in the fields of medicine, aviation, robotics, etc., is also expected to gradually enter the performance realization period. The company already has the foundation for achieving record highs in the medium term, and now it may be the golden window for Tiangong Co., Ltd. to lay out Tiangong Co., Ltd.