HK Stock Market Move | TIANGONG International (00826) surges over 7%, its subsidiary Tiangong Stock recently opened for subscription. Institutions are optimistic about the company's future growth potential.

TIANGONG INT'L (00826) rose more than 7%, up 7.11% to HK$2.26 at the time of publication, with a turnover of HK$11.69 million. On the news front, TIANGONG INT'L's holding subsidiary, Tiangong Corporation, initiated the new stock subscription for listing on the North Exchange on April 28. It is reported that Tiangong Corporation will issue up to 69 million new shares through placement and issuance, accounting for 10.52% of the expanded share capital. All the funds raised from this listing will be used for the construction of a production line project for 3,000 tons of high-end titanium and titanium alloy rods and wire materials annually. After completion, the company's production capacity will increase from 7,000 tons to 10,000 tons. Guotai Junan previously pointed out that after Tiangong Corporation completes its listing, its 3,000-ton titanium project will be accelerated, and the development of the company's titanium alloy sector may speed up. With the establishment of the company's Thailand base and the titanium project, the company's future growth space will further open up. Guosheng Securities stated that the company is a leader in the segmented field of tool and die steel, continuously moving towards high-end development, with strong domestic demand. The company continues to pay dividends and has a certain defensive configuration value. The domestic substitution of high-end tool and die steel, high growth in domestic tool and die steel, and the exploration of new applications such as Siasun Robot&Automation ball screws using high-speed steel. Northeast Express stated that TIANGONG INT'L is a global leader in the specialty steel segment, with its main business covering tool and die steel, high-speed steel, cutting tools, and titanium alloys, all four businesses developing synergistically.