Western Superconducting Technologies Co., Ltd. (688122)

Equity Research Report　|　Industry: Advanced New Materials　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; certain technical indicators are as of September 10, 2026.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Western Superconducting’s operations came under pressure in the first half of 2026: operating revenue was RMB 2.612 billion, down 4.07% year on year; net profit attributable to shareholders was RMB 345 million, down 36.77%; net profit attributable to shareholders excluding non-recurring items was RMB 156 million, down 68.42%; and net cash flow from operating activities was negative RMB 134 million. During the same period, gains from fair-value changes were approximately RMB 206 million, while total non-recurring gains and losses were approximately RMB 189 million, indicating a significant divergence between reported attributable net profit and core operating profitability.

The company’s principal businesses comprise superconducting products, high-end titanium alloys, and high-performance superalloys. It has full-process manufacturing capabilities for superconducting wires and magnets, and has established technological barriers through grade-specific processes, customer certification, and R&D platforms. In 2025, revenue from its three principal businesses totaled RMB 4.964 billion, up 13.26% year on year, including RMB 1.599 billion from superconducting products, RMB 2.793 billion from high-end titanium alloys, and RMB 571 million from high-performance superalloys. However, in the first half of 2026, high-end titanium alloy revenue declined 23.44% year on year, superconducting product revenue declined 6.96%, and superalloy revenue increased 117.79%, indicating an ongoing adjustment in the business mix.

The company’s growth drivers mainly consist of volume production of aerospace titanium alloys and superalloy grades, expanded applications of superconducting magnets in MCZ single-crystal silicon and nuclear fusion, and the industrialization of high-temperature superconducting products. The company has disclosed that it completed its ITER supply obligations and that MCZ superconducting magnets have entered mass supply to customers. Its controlling subsidiary, Juno Magnet, has had its application for a Beijing Stock Exchange listing accepted, although the related review, rectification, and listing outcome remain uncertain.

As of September 11, 2026, the company’s share price was RMB 51.57, with a forward P/E of approximately 52.48x, placing it in a historically high valuation range. In the short term, the share price has moved above the MA5, MA10, MA20, and MA50, but is close to the estimated Bollinger upper band of RMB 52.3–52.8. The medium- and long-term moving averages have not yet formed a fully strengthening structure. Market valuation to a considerable extent reflects expectations for future earnings recovery and growth in superalloys and superconducting businesses.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Superconducting products: Including NbTi niobium-titanium ingots, bars and superconducting wires, Nb3Sn niobium-tin superconducting wires, MgB2 high-temperature superconducting wires, and superconducting magnets. Applications include magnetic-controlled Czochralski single-crystal silicon, nuclear fusion, high-energy accelerators, MRI, and research magnets. The company has disclosed full-process production capabilities covering NbTi ingots, bars, superconducting wires, and superconducting magnets. Since 2024, it has supplied the BEST fusion project in volume and has achieved annual delivery of more than 100 superconducting magnets for 300-mm magnetic-controlled Czochralski electronic-grade single-crystal silicon.
• High-end titanium alloy materials: Including large bars, small bars, wires, and forging billets, primarily serving aircraft structural components, aerospace fasteners, aircraft-engine components, helicopters, unmanned aerial vehicles, large passenger aircraft, vessels, weapons, the nuclear industry, and certain high-end civilian equipment. Representative grades include TC4, TC11, TA15, TC21, and Ti45Nb.
• High-performance superalloy materials: Including wrought superalloys, superalloy master alloys, and related special-steel materials, primarily used in aircraft-engine combustors, turbine disks, guide vanes, turbine blades, gas turbines, ultra-supercritical thermal power equipment, and aerospace equipment in high-temperature, high-stress applications.
• In 2024, combined revenue from the three principal businesses was RMB 4.383 billion, including RMB 2.752 billion from high-end titanium alloy materials, RMB 1.304 billion from superconducting products, and RMB 327 million from high-performance superalloy materials.
• In 2025, revenue from high-end titanium alloy materials was RMB 2.793 billion, revenue from superconducting products was RMB 1.599 billion, and revenue from high-performance superalloy materials was RMB 571 million.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Western Superconducting occupies an upper-middle position in the advanced new-materials value chain and is a “high-technology materials processing + model certification + specialized equipment applications” enterprise. Upstream, the company relies on raw materials such as sponge titanium, niobium, nickel, oxygen-free copper, and master alloys. Downstream, it serves the aerospace industry, AECC, nuclear fusion, major scientific projects, MRI, and high-end equipment customers. It generates technological premiums primarily through accumulated technology, customer certifications, and full-process manufacturing capabilities.

• High-end titanium alloys mainly require sponge titanium, titanium ingots, and master alloys; superconducting products mainly require niobium ingots, oxygen-free copper, magnesium, and related intermediate materials; superalloys mainly require nickel, cobalt, chromium, molybdenum, and other alloying elements and master alloys. The company also purchases returned materials, special steels, and other auxiliary materials.
• The company mainly adopts a continuous, batch-based procurement model and has entered into long-term procurement agreements with certain large suppliers.
• In 2024, purchases from the five largest suppliers amounted to RMB 1.020 billion, accounting for 35.91% of total annual purchases. No single supplier accounted for more than 50% of purchases, although the annual report noted relatively high concentration among major raw-material suppliers.
• Raw-material costs accounted for approximately 70.01% of principal operating costs in 2024. By product, raw-material costs accounted for 64.27%, 78.44%, and 77.99% of the costs of high-end titanium alloys, superconducting products, and high-performance superalloys, respectively.
• The company does not possess full pricing power over bulk metal raw materials such as sponge titanium, niobium, nickel, and oxygen-free copper, and is closer to a “technology-premium processor.” Profit improvement depends primarily on grade upgrades, higher process yields, economies of scale, and customer certifications rather than control of mineral resources.
• Downstream customers mainly include China Aerospace Science and Technology Corporation and its subsidiaries, AECC and customers in the aircraft-engine industry chain, China State Shipbuilding Corporation, China North Industries Group, China National Nuclear Corporation, and other defense groups, as well as customers in nuclear fusion, major scientific projects, MRI, single-crystal silicon equipment, accelerators, and international customers such as GE and Siemens.
• Sales to the five largest customers in 2024 amounted to RMB 2.892 billion, accounting for 62.70% of total annual sales. The largest customer accounted for 26.91%, and the second-largest customer accounted for 12.12%. These data come from the company’s 2024 annual report. Customer names were disclosed anonymously, and the data currently consists mainly of a single annual-report observation; year-over-year changes have not been cross-verified and should be confirmed against the latest annual report.
• Aerospace titanium alloy and superalloy customers have long certification cycles and high technical standards. Once a product enters a specific model’s supply system, replacement costs are relatively high, giving the company certain technological barriers in certified products. However, aerospace and defense customers are relatively concentrated, and procurement plans, model progress, and acceptance schedules can affect revenue recognition and collections. The company does not possess strong pricing power over all customers.
• Superconducting magnets are customized, non-standard products that require customer testing and confirmation before volume supply. Orders for individual projects may fluctuate considerably. The company mainly adopts a direct-sales model, reducing intermediaries, but must directly bear the pressure associated with customer certification, delivery, collections, and after-sales service.
• The company’s competitive advantages in aerospace titanium alloys and superalloys mainly derive from customer certifications, long-term R&D, and qualification to supply specific models. Its competitive advantages in superconducting products mainly derive from full-process capabilities spanning NbTi ingots, bars, wires, and magnets, as well as project-delivery experience.
• As of December 31, 2024, accounts receivable amounted to RMB 2.710 billion, representing 19.91% of total assets and increasing 31.60% year on year, equivalent to approximately 3.4x 2024 net profit attributable to shareholders. A research note stated that this was equivalent to approximately 5.88% of 2024 operating revenue, but this ratio is inconsistent with accounts receivable of RMB 2.710 billion and operating revenue of RMB 4.612 billion due to differences in definitions or calculation. Further verification is required. Accounts payable during the same period amounted to RMB 1.865 billion, representing 13.70% of total assets and increasing 56.63% year on year. Accounts receivable were significantly higher than accounts payable and grew rapidly. The company’s annual report stated that aerospace-material R&D, validation, and production cycles are relatively long, that collection cycles are extended, and that most settlements use acceptance bills, indicating significant capital tied up in downstream customers and suggesting that the company’s actual bargaining power is not entirely strong.
• Supply side: Purchases from the five largest suppliers in 2024 accounted for 35.91% of total annual purchases, with no single supplier accounting for more than 50%, although suppliers were relatively concentrated. Customer side: Sales to the five largest customers in 2024 accounted for 62.70% of total annual sales; the largest customer accounted for 26.91% and the second-largest customer for 12.12%. Customer names were disclosed anonymously, and the data mainly came from a single 2024 annual report. Year-over-year changes could not be cross-verified and should be confirmed against the latest annual report.

The company is positioned in the upper-middle portion of the advanced new-materials value chain. It is neither an upstream resource enterprise controlling mineral resources nor a downstream company relying on a consumer brand to obtain high premiums. Instead, it generates technological premiums through high-technology materials processing, customer certification, and specialized equipment applications. The keys to further margin improvement are increasing the proportion of volume production for high-end titanium alloy and superalloy grades, raising the share of high-field superconducting wires, superconducting magnets, and high-temperature superconducting products, reducing the impact of price fluctuations in niobium, nickel, oxygen-free copper, and sponge titanium, shortening the period from customer certification to volume supply, and improving the capital-occupation risks associated with accounts receivable and customer concentration.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Net profit attributable to shareholders excluding non-recurring items was RMB 156 million in the first half of 2026, down 68.42% year on year, versus RMB 493 million in the first half of 2025. Basic EPS was RMB 0.5315 in the first half of 2026, down 36.77% year on year, while basic EPS excluding non-recurring items was RMB 0.2399, down 68.42%. Net cash flow from operating activities was negative RMB 134 million in the first half of 2026, compared with RMB 204 million in the same period of 2025. For full-year 2025, net profit attributable to shareholders excluding non-recurring items was RMB 683 million, down 4.16% year on year, while net cash flow from operating activities was RMB 606 million, up 35.73% year on year.

In the first half of 2026, revenue declined slightly, while attributable net profit and attributable net profit excluding non-recurring items fell significantly, putting pressure on core profitability. The company attributed the decline mainly to product-mix adjustments, lower selling prices for certain products, increased R&D investment, and reduced government subsidies recognized in current-period profit or loss. Gains from fair-value changes amounted to RMB 206 million, while total non-recurring gains and losses were RMB 189 million. Attributable net profit therefore included a relatively large amount of fair-value-change gains, and attributable net profit excluding non-recurring items was materially weaker than reported attributable net profit. By product, high-end titanium alloy revenue was approximately RMB 1.200 billion, down 23.44% year on year, with a gross margin of 34.14%; superconducting product revenue was approximately RMB 743 million, down 6.96%, with a gross margin of 28.51%; and high-performance superalloy revenue was approximately RMB 534 million, up 117.79%, with a gross margin of 22.95%. The company’s consolidated gross margin in the first half of 2026 was approximately 30.09%, down 8.61 percentage points year on year; second-quarter consolidated gross margin was approximately 33.27%, improving from the first quarter. As of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 7.225 billion, up 1.36% from the end of 2025; total assets were RMB 16.602 billion, up 10.03%; and the debt-to-asset ratio was 51.78%, up from 48.13% at the end of 2025. Superalloy operations grew rapidly, but gross margin remained below that of titanium alloys and superconducting products. Whether this can offset declines in the other businesses remains to be seen.

3.2 Earnings Forecasts

According to data from the TONGHUASHUN F10 platform, as of September 9, 2026, nine institutions had issued forecasts for the company’s 2026 results within the preceding six months. Major forecasts included the following: China Merchants Securities expected attributable net profit of RMB 798 million, RMB 970 million, and RMB 1.162 billion for 2026–2028, with EPS of RMB 1.23, RMB 1.49, and RMB 1.79, respectively, in a forecast dated September 3, 2026; Guolian Minsheng Securities expected attributable net profit of RMB 846 million, RMB 969 million, and RMB 1.131 billion, with EPS of RMB 1.30, RMB 1.49, and RMB 1.74, respectively, in a forecast dated August 30, 2026; Huatai Securities expected attributable net profit of RMB 846 million, RMB 965 million, and RMB 1.086 billion, with EPS of RMB 1.30, RMB 1.49, and RMB 1.67, respectively, in a forecast dated August 28, 2026; and Kaiyuan Securities expected attributable net profit of RMB 776 million, RMB 952 million, and RMB 1.147 billion, with EPS of RMB 1.19, RMB 1.47, and RMB 1.77, respectively, in a forecast dated August 28, 2026. Institutional forecasts differ considerably, with Kaiyuan Securities relatively cautious regarding 2026 earnings.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was approximately RMB 51.57, total shares outstanding were approximately 650 million, and total market capitalization was approximately RMB 33.5 billion. According to CnFin, the dynamic P/E was approximately 52.48x, the dynamic P/E excluding non-recurring items was approximately 96.98x, and P/B was approximately 4.18x; EPS as of June 30, 2026 was approximately RMB 0.98. Based on the TONGHUASHUN institutional consensus EPS, forward P/E for 2026–2028 was approximately 41.6x, 34.8x, and 29.3x, respectively. Based on the closing price of RMB 51.57, the Guotai Haitong target price of RMB 73.02 implies potential upside of approximately 41.6%; Huatai’s target price of RMB 61.10 implies approximately 18.5%; and the target price of RMB 64.82 aggregated by Kaiyuan Securities and Stockstar implies approximately 25.7%. Current spot or TTM valuation is materially affected by the earnings decline in the first half of 2026, with the P/E excluding non-recurring items approaching 100x. Institutional valuation expectations for 2027–2028 are mainly based on earnings recovery. A current forward P/E of approximately 52x and P/B of approximately 4.2x are not inexpensive, and the market has already assigned a certain premium to expectations for future earnings recovery and growth in superalloys and superconducting products. If 2027 earnings fail to reach approximately RMB 950 million to RMB 1.0 billion, valuation compression may become a risk. Valuation is relatively sensitive to order recognition in the second half of the year, recovery in titanium alloy demand, and the ramp-up of superalloys. It should be noted that certain market-data websites report inconsistent closing prices for September 11, 2026. Investing’s historical data shows RMB 49.17 or RMB 49.92, while this report adopts the RMB 51.57 recorded by CnFin. Related valuation data should be further checked against official exchange and company disclosures.

4. Recent News and Announcements

4.1 Subsidiary Xi’an Juno Superconducting Magnet Received a Warning Letter from the Shaanxi CSRC Office

On September 1, 2026, the Shaanxi CSRC Office imposed a warning-letter measure on Western Superconducting’s controlling subsidiary, Xi’an Juno Superconducting Magnet Technology Co., Ltd. The regulator determined that its information-disclosure management system did not include requirements for the registration and management of insiders, and that the company had not registered insiders for relevant material matters in its daily management. The company must submit a rectification report within 30 working days of receiving the decision. The direct subject of the measure was the subsidiary, not Western Superconducting itself, and no fine or formal investigation penalty was involved. As Juno Magnet is advancing a Beijing Stock Exchange listing, the matter may increase uncertainty surrounding its compliance rectification and listing-review progress. Its direct financial impact cannot currently be quantified. Source: Shaanxi CSRC Office.

4.2 Won a Procurement Project from AECC Shenyang Liming Aero-Engine

According to public reports dated September 9, 2026, Western Superconducting won a bar-material procurement project from AECC Shenyang Liming Aero-Engine Co., Ltd., with a contract value of RMB 19.6676 million. The project is related to aerospace titanium alloys and aero-engine materials. However, the information currently consists mainly of a publicly reported procurement result, and no independent tender-win announcement by Western Superconducting has been identified on the Shanghai Stock Exchange. The amount and award remain subject to further confirmation by the company and should not be directly regarded as a new order formally confirmed by an official announcement.

4.3 First-Half 2026 Report Showed Declines in Revenue and Profit

Western Superconducting disclosed its first-half 2026 report on August 27, 2026. First-half operating revenue was RMB 2.612 billion, down 4.07% year on year; attributable net profit was RMB 345 million, down 36.77%; attributable net profit excluding non-recurring items was RMB 156 million, down 68.42%; net cash flow from operating activities was negative RMB 134 million, compared with RMB 204 million in the same period of the prior year; and basic EPS was RMB 0.5315. Total non-recurring gains and losses during the reporting period were approximately RMB 189 million, including approximately RMB 206 million in fair-value changes and related investment gains on trading financial assets and trading financial liabilities, and approximately RMB 25.4051 million in government subsidies recognized in current-period profit or loss.

4.4 Interim Profit Distribution Proposal to Pay RMB 0.20 Cash Dividend per Share

On August 27, 2026, the company disclosed an interim profit distribution proposal based on total share capital of 649,664,497 shares, proposing a cash dividend of RMB 0.20 per 10 shares, including tax, to all shareholders. The expected total cash dividend is RMB 129,932,899.40. The proposal was approved by the board of directors and, pursuant to prior authorization by the shareholders’ meeting, does not need to be resubmitted for approval. The specific implementation date was not stated in the research note.

4.5 Provision for Asset Impairments of RMB 97.1881 Million in the First Half

On August 27, 2026, the company announced total asset-impairment provisions of RMB 97.1881 million for the first half of 2026. Credit impairment losses amounted to RMB 12.2978 million, mainly relating to notes receivable, accounts receivable, and other receivables. Asset impairment losses amounted to RMB 84.8903 million, mainly comprising inventory write-down provisions and impairment losses on contract assets. The company stated that the provisions would reduce consolidated profit before tax for the first half of 2026 by RMB 97.1881 million. The figures have not been audited, and final amounts will be subject to the accounting firm’s annual audit confirmation.

4.6 Controlling Subsidiary Juno Magnet’s Beijing Stock Exchange Listing Application Accepted

Western Superconducting disclosed on July 1, 2026, that its controlling subsidiary, Xi’an Juno Superconducting Magnet Technology Co., Ltd., had submitted listing-application materials to the Beijing Stock Exchange on June 25, 2026, and received an acceptance notice from the BSE on June 29. Western Superconducting holds 29,600,000 shares of Juno Magnet, representing a 34.82% stake. The company warned of risks including failure to pass the BSE issuance and listing review or China Securities Regulatory Commission registration, failure of the public offering, and failure to list. Following the warning letter received on September 1, 2026, its rectification and review progress require continued monitoring.

4.7 Controlling Shareholder Northwest Institute for Non-ferrous Metal Research Completed Its Share Reduction Plan

On August 12, 2026, the company disclosed the results of a shareholder share-reduction plan. Its controlling shareholder, Northwest Institute for Non-ferrous Metal Research, reduced its holdings by 2.0 million shares between August 3 and August 6, 2026, representing 0.3079% of total share capital. The prior plan allowed for the reduction of no more than 6.236779 million shares, or no more than 0.96% of total share capital, between May 11 and August 11, 2026. The announcement stated that the reduction plan had expired. The actual reduction was below the planned maximum and did not affect control of the company.

4.8 ITER Supply Obligations Completed; MCZ Superconducting Magnets Have Entered Volume Supply

On August 20, 2026, the company responded to investors via the SSE e-interactive platform, stating that it had completed its supply obligations to the ITER project. In semiconductors, demand for MCZ superconducting magnets continues to be released as large-size silicon-wafer capacity expands, products are upgraded, and equipment localization advances. The company’s products have entered volume supply to customers, and it will actively engage with projects related to controlled nuclear fusion. The above content was an investor-interaction-platform response and does not constitute a formal earnings commitment or order announcement. The research note did not disclose specific order amounts, revenue-recognition timing, or profit contribution.

4.9 No New Share Buyback or Share-Increase Announcement Identified as of September 12, 2026

As of September 12, 2026, no newly disclosed share buyback, controlling-shareholder purchase, or new director or senior-management share increase or reduction announcement by Western Superconducting in September 2026 had been identified. The potential share-buyback commitment under specific regulatory or administrative-penalty circumstances disclosed in the interim report is a historical or conditional commitment and should not be interpreted as a buyback plan currently under implementation.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Western Superconducting closed at RMB 51.57, moving clearly above the prior consolidation range around RMB 49, while both September 9 and September 11 saw volume-backed gains. The September 11 close was above the MA5, MA10, MA20, and MA50, but only slightly above the MA200 area, indicating improved short-term rebound momentum while the medium- and long-term trend lacks full confirmation of strengthening. MACD indicated short-term recovery, while RSI remained neutral. The share price was also close to the estimated Bollinger upper band of RMB 52.3–52.8, suggesting near-term resistance. The current PE-TTM of 52.48x is in a historically high valuation range, making subsequent performance relatively sensitive to trading volume, capital-flow persistence, and industry sentiment.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices, and technical indicators. It does not constitute investment advice or a definitive price forecast.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Consolidation (relatively higher weight, approximately 50%–60%; a subjective heuristic weight based on the current technical pattern, trading volume, and fund flows, not a statistical probability): Expected price range of approximately RMB 50.0–52.5. If turnover declines to approximately RMB 300 million–RMB 600 million, the share price holds around RMB 50 but fails to sustain a break above RMB 52.2, and the share price remains close to short-term resistance with RSI in neutral territory and moving averages mixed, the stock may undergo high-level consolidation and technical digestion.
• Strengthening rebound (medium weight, approximately 30%; a subjective heuristic weight, not a statistical probability): Expected price range of approximately RMB 52.2–54.5. Trigger conditions include a valid breakout above RMB 52.2–52.8, daily turnover remaining above RMB 600 million, consecutive net inflows of main funds, and simultaneous strength in the defense, advanced-materials, or superconducting-related sectors. An intraday breakout followed by a close back below RMB 52 would not constitute a valid breakout.
• Weak pullback (low to medium weight, approximately 20%; a subjective heuristic weight, not a statistical probability): Expected price range of approximately RMB 48.8–50.0. Trigger conditions include a high-volume break below RMB 50 followed by renewed consecutive net outflows of main funds, or a significant correction in the broader market, defense, or non-ferrous-metals sectors. A further break below the strong-support range of RMB 48.8–49.3 could lead the share price to seek support around RMB 46.6–47.1.

③ Capital and Liquidity Background

From September 7 to September 10, 2026, daily turnover was approximately RMB 240 million–RMB 676 million, with turnover ratios of 0.75%–2.08%. On September 11, turnover rose to approximately RMB 969 million and the turnover ratio increased to 2.97%. The research note characterized approximately RMB 250 million–RMB 400 million as normal-day turnover, with turnover potentially expanding to RMB 600 million–RMB 1.0 billion when the market rallies. As of June 30, 2026, the total number of shareholders was approximately 76,436. The ten largest shareholders of tradable shares held approximately 304 million shares in aggregate, representing 46.86% of tradable shares. TONGHUASHUN data showed that major institutional investors held approximately 345.6 million shares, representing 53.20% of tradable A-shares, including funds, general legal entities, and social security funds. The ten-largest-tradable-shareholder concentration and the total major-institutional-holdings ratio cover different groups and use different definitions and cannot be added directly. The shareholder-structure data are as of June 30, 2026, more than two months before the September 11 close. Portfolio adjustments may have occurred during this period, so the data should not be viewed as a real-time ownership structure. The data indicate relatively high ownership concentration and institutional participation. The actual tradable float may therefore be relatively concentrated, resulting in strong price elasticity during volume expansion but potentially rapid volatility when capital retreats.

A verifiable price-volume confirmation signal is as follows: if daily turnover can remain above approximately RMB 600 million for several consecutive sessions during the coming week and the closing price simultaneously stabilizes above the RMB 52.2–52.8 resistance zone, this may indicate further strengthening in short-term capital participation. If turnover falls below RMB 300 million and the share price breaks below RMB 50, the sustainability of the volume-backed breakout would appear insufficient.

④ Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: Monitor whether RMB 52.2–52.8 can transition from a resistance zone into valid support.
• Observation framework, not a trading instruction: Monitor whether volume contracts during a pullback to RMB 50.0–50.4 and whether the area around RMB 49 continues to attract support.
• Observation framework, not a trading instruction: Monitor whether turnover remains above approximately RMB 600 million for several consecutive sessions rather than expanding on only one day.
• Observation framework, not a trading instruction: Monitor whether main-fund flows shift from a single-day net inflow to net inflows over multiple consecutive trading sessions.

The above scenario analysis is based on the September 11, 2026 closing data and estimates using historical prices and technical indicators. Short-term share-price performance will also be affected by news flow, capital flows, the broader market environment, and other factors. Technical indicators themselves are subject to lag and limitations. This analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and assume their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

Western Superconducting is classified under non-ferrous metal alloy manufacturing (C3240), but in practice spans three technically demanding and structurally distinct segments: superconducting materials and magnets, high-end titanium alloys, and high-performance superalloys. The company has full-process manufacturing capabilities for superconducting wires and magnets, focuses on high-end titanium alloy bars, wires, and related high-performance materials for aerospace applications, and is in the capacity-expansion, certification, and volume-ramp stage for superalloys.

6.2 Competitive Landscape

• Superconducting materials and magnets: The industry remains in the stage of technological industrialization and application expansion. Applications cover nuclear fusion, MRI and NMR, high-energy accelerators, magnetic-controlled Czochralski single-crystal silicon, quantum computing, superconducting cables, superconducting energy storage, high-speed maglev, and high-field research magnets. Domestic participants in low-temperature superconducting wires and magnets are relatively limited. Key areas of competition include high-field magnets, nuclear fusion projects, high-end MRI/NMR, MCZ single-crystal silicon equipment, and the mass production and cost reduction of high-temperature superconducting materials.
• High-end titanium alloys: The industry is concentrated in high-end applications such as aviation, aerospace, vessels, and weapons. Barriers arise from raw-material purity control, homogenization of extra-large ingots, forging of large bars, microstructure control in small bars and wires, batch stability, and customer certification. The industry does not compete solely on capacity; companies differ in product form, customer structure, and application fields.
• High-performance superalloys: Mainly used in hot-end components of aircraft engines and gas turbines. The industry has high technical barriers, long certification cycles, and stringent requirements for purity and batch stability. Only a small number of domestic companies can currently supply in stable volumes. Demand is closely tied to the business cycles of aircraft engines, gas turbines, and energy equipment.
• The company disclosed in 2025 that it had established volume-production capabilities for bismuth-based high-temperature superconducting wires, with individual wire lengths reaching the kilometer scale and capacity of 2,000 km per year. However, public annual reports have not uniformly disclosed complete designed capacity for NbTi, Nb3Sn, MgB2, and other wire types or superconducting magnets. Therefore, this figure cannot be equated with the company’s total superconducting-product capacity.
• The company’s publicly disclosed 2024 output of 8,133.73 tonnes of high-end titanium alloys and 1,264.29 tonnes of superalloys represents actual production, not designed capacity. Disclosure of total designed capacity across the three principal businesses is incomplete.

6.3 Major Competitors

Western Superconducting does not have a single directly comparable company. BaoTi and Jintian Titanium are more suitable for comparison in titanium alloys, while Gaona Aero Material, Fushun Special Steel, and Tunan are more suitable for comparison in superalloys. There are relatively few directly comparable listed companies for the superconducting business. Compared with BaoTi, Western Superconducting is more focused on high-end aerospace bars, wires, and superconducting products; compared with Jintian Titanium, its business is more diversified; and compared with Gaona Aero Material, Fushun Special Steel, and Tunan, it benefits from superconducting and high-end titanium alloy businesses, although its superalloy operations remain in the capacity-expansion, certification, and volume-ramp stage.

7. Risk Factors

• Core operating-profit decline: Attributable net profit excluding non-recurring items was only RMB 156 million in the first half of 2026, down 68.42% year on year, while consolidated gross margin declined 8.61 percentage points year on year. If product-mix adjustments, lower selling prices, and increased R&D investment persist, fair-value-change gains included in attributable net profit may not replace core operating earnings.
• High-end titanium alloy demand and customer procurement-cycle risk: High-end titanium alloy revenue was approximately RMB 1.200 billion in the first half of 2026, down 23.44% year on year. The company’s aerospace and defense customers have long certification cycles, and procurement plans, model progress, and acceptance schedules may affect order confirmation, revenue recognition, and collections.
• Risk that superalloy ramp-up falls short of expectations: Superalloy revenue increased 117.79% year on year in the first half of 2026, but gross margin was 22.95%, still below that of high-end titanium alloys and superconducting products. If capacity expansion, customer certification, or volume-supply progress falls short of expectations, this business may be unable to offset declines in titanium alloys and superconducting products.
• Raw-material price and gross-margin risk: Raw-material costs accounted for approximately 70.01% of principal operating costs in 2024. Raw-material costs represented 64.27%, 78.44%, and 77.99% of the costs of high-end titanium alloys, superconducting products, and high-performance superalloys, respectively. The company does not possess full pricing power over sponge titanium, niobium, nickel, oxygen-free copper, and other materials, and raw-material price volatility may compress margins.
• Customer-concentration and accounts-receivable risk: Sales to the five largest customers accounted for 62.70% of total annual sales in 2024, with the largest customer accounting for 26.91%. At the end of 2024, accounts receivable amounted to RMB 2.710 billion, up 31.60% year on year, compared with accounts payable of RMB 1.865 billion. Aerospace-material production cycles are long and settlements often use acceptance bills. Changes in customer procurement or collection schedules could increase capital tied up and credit-impairment pressure.
• Asset-impairment risk: The company recognized total asset-impairment provisions of RMB 97.1881 million in the first half of 2026, with inventory write-down provisions and contract-asset impairment losses accounting for the major portion. The related amounts have not yet been finally confirmed through the annual audit. If inventory absorption, contract execution, or customer acceptance falls short of expectations, further impairment pressure may arise.
• Superconducting order and execution risk: The completion of ITER supplies, volume supply of MCZ superconducting magnets, and expansion into nuclear-fusion projects have not yet been accompanied by disclosures of specific order amounts, revenue-recognition timing, or profit contribution. Superconducting magnets still require customer testing and confirmation, and individual project orders may fluctuate considerably, creating uncertainty over the realization of related growth.
• Juno Magnet listing and compliance-governance risk: The listing application of controlling subsidiary Xi’an Juno Superconducting Magnet has been accepted by the BSE, but the subsidiary received a warning letter from the Shaanxi CSRC Office for failing to improve insider-registration management. The outcome of its rectification, BSE review, and subsequent issuance and listing remains uncertain, and the direct financial impact cannot currently be quantified.
• Valuation and share-price volatility risk: As of September 11, 2026, the company’s dynamic P/E was approximately 52.48x and its dynamic P/E excluding non-recurring items was approximately 96.98x, placing valuation in a historically high range. If 2027 earnings fail to reach the institutional forecast of approximately RMB 950 million to RMB 1.0 billion, or if trading volume fails to continue supporting the technical rebound, the risks of valuation compression and share-price volatility may increase.

8. Conclusion and Outlook

Western Superconducting’s core competitiveness lies in high-end materials processing, full-process manufacturing, long-term R&D accumulation, and customer certification rather than control of mineral resources. High-end titanium alloys remain the main source of revenue, superconducting products have distinctive technological strengths, and superalloys are in the capacity-expansion, certification, and volume-ramp stage. If aerospace-material demand recovers, superalloy volume growth continues, and volume supply of superconducting magnets is further converted into revenue and profit, the company has room for earnings recovery.

In the short term, the company faces the impact of product-mix adjustments, lower prices for certain products, increased R&D investment, and reduced government subsidies. Consolidated gross margin declined to approximately 30.09% in the first half of 2026, while attributable earnings excluding non-recurring items and operating cash flow were materially weaker than in the same period of the prior year. Consensus institutional forecasts expect attributable net profit of approximately RMB 808 million in 2026 and RMB 962 million in 2027. However, these forecasts are based on assumptions including subsequent recovery in titanium alloy demand and continued volume growth in superalloys. Earnings execution still needs to be assessed through changes in orders, deliveries, gross margins, and cash flow.

The company must focus on improving the problems associated with raw-material price volatility, customer concentration, and capital tied up in accounts receivable, while verifying whether the superalloy business can improve its profit contribution alongside rapid revenue growth. A current forward P/E of approximately 52x and P/B of approximately 4.2x are already relatively high. If earnings recovery falls short of expectations, valuation pressure could amplify share-price volatility. From a technical perspective, RMB 52.2–52.8 represents a short-term resistance zone, and subsequent performance will be relatively sensitive to trading volume, capital-flow persistence, and fundamental expectations.

Data Sources

• Western Superconducting Technologies Co., Ltd. 2024 Annual Report
• Western Superconducting (688122)_Company Announcements_Western Superconducting: 2025 Annual Report_Sina Finance
• Western Superconducting Technologies Co., Ltd. 2026 Public Offering of Sci-Tech Innovation Corporate Bonds to Professional Investors Prospectus
• Jintian Titanium Industry (688750)_Company Announcements_Jintian Titanium Industry: Prospectus for Initial Public Offering and STAR Market Listing_Sina Finance
• Western Superconducting Technologies Co., Ltd. Response to Inquiry Letter
• Western Superconducting (688122)_Company Announcements_Western Superconducting: 2026 Interim Report_Sina Finance
• Western Superconducting (688122)_Company Announcements_Western Superconducting: 2026 Interim Report_Sina Finance
• Western Superconducting (688122) Earnings Forecast_F10_TONGHUASHUN Financial Services
• Western Superconducting Technologies Co., Ltd. 2025 Annual Report
• Western Superconducting (688122) 2026 Interim Results Review: Performance Under Temporary Pressure; Continued Exploration of New Markets and Demand_Sina Finance
• www.fxbaogao.com
• Kaiyuan Securities: Buy Rating on Western Superconducting_Brokerage Research Report_Data Analysis_Stocks_Stockstar
• Western Superconducting (688122)_Stock Quote, Quote Homepage_CnFin
• Company Code: 688122 Company Abbreviation: Western Superconducting
• Decision on Taking Warning-Letter Measures against Xi’an Juno Superconducting Magnet Technology Co., Ltd._Shaanxi Regulatory Bureau
• Western Superconducting (688122): Won a Procurement Project from AECC Shenyang Liming Aero-Engine, with a Contract Value of RMB 19.6676 Million_Sina Finance
• Western Superconducting: First-Half 2026 Net Profit of RMB 345 Million; Proposed Cash Dividend of RMB 0.20 per 10 Shares_Eastmoney
• Western Superconducting (688122)_Company Announcements_Western Superconducting: Announcement on 2026 Interim Profit Distribution Proposal_Sina Finance
• Western Superconducting (688122)_Company Announcements_Western Superconducting: Announcement on Provision for Asset Impairment in the First Half of 2026_Sina Finance
• Western Superconducting (688122)_Company Announcements_Western Superconducting: Announcement on the Progress of the Controlling Subsidiary Xi’an Juno Superconducting Magnet Technology Co., Ltd.’s Application to Issue Shares to Unspecified Qualified Investors and List on the Beijing Stock Exchange_Sina Finance
• Western Superconducting (688122)_Company Announcements_Western Superconducting: Announcement on Shareholder Share-Reduction Results_Sina Finance
• Western Superconducting: Completed Supply Obligations to the ITER Project_Sina Finance
• Shanghai Stock Exchange STAR Market Listed Companies
• Western Superconducting (688122)_Stock Quote, Quote Homepage_CnFin
• Western Superconducting Tech Co Ltd (688122) Historical Prices_Investing.com
• Western Superconducting (688122) Historical Trading Data_Dabanke
• Western Superconducting (688122) Latest Price, Real-Time Chart, and Share-Price Analysis and Forecast_Investing.com
• Western Superconducting (688122) P/E, Valuation, and Fundamentals_Lixinger
• Western Superconducting (688122) Technical Analysis, Future Forecast, and Trading Recommendations_Investing.com
• September 11 Defense Industry Fund-Flow Daily Report_Phoenix News
• Stock Market Flash: Western Superconducting (688122) Recorded Main-Fund Net Selling of RMB 9.5303 Million on September 10_Main-Fund Research_Stocks_Stockstar
• Western Superconducting (688122) Latest Developments_F10_TONGHUASHUN Financial Services

This report was automatically retrieved, compiled, and generated by AI based on publicly available information. The information is current as of the September 11, 2026 close; certain technical-indicator data are as of September 10, 2026. There may be differences in timeliness. Specific data should be confirmed against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and assume their own investment risks.