LB Group(SZ:002601) Xin Lang Cai Jing·2025-10-28 08:40Core Viewpoint - Longbai Group reported a decline in revenue and net profit for Q3 2025, indicating ongoing challenges in the titanium dioxide market and overall industry performance [1][2]. Financial Performance - For Q3 2025, Longbai Group achieved revenue of 6.105 billion yuan, a year-on-year decrease of 14%, and a net profit attributable to shareholders of 289 million yuan, down 66% year-on-year [1]. - The company’s gross margin for Q3 was 19.4%, a decrease of 6 percentage points year-on-year and 5 percentage points quarter-on-quarter [2]. - The overall revenue for the first three quarters of 2025 was 19.436 billion yuan, down 7% year-on-year, with a net profit of 1.674 billion yuan, down 35% year-on-year [1]. Market Conditions - The titanium dioxide market remains at a low point, with prices for various titanium products showing significant declines: titanium concentrate at 1,707 yuan/ton (-23% YoY), sulfuric acid titanium dioxide at 13,725 yuan/ton (-12% YoY), and chlorinated titanium dioxide at 17,492 yuan/ton (-11% YoY) [2]. - The company faced pressure from increased supply of titanium iron ore and weak downstream demand, which negatively impacted the price differentials in the industry [2]. Export Dynamics - In Q3, titanium ore and concentrate imports were nearly 1.2 million tons, down 12% year-on-year, while titanium dioxide exports were approximately 430,000 tons, down 8% year-on-year but up 3% quarter-on-quarter [2]. - The temporary cancellation of anti-dumping duties by India is expected to provide short-term benefits for domestic exports, with increased activity anticipated as overseas Christmas stocking begins [2]. Strategic Developments - Longbai Group's subsidiary, Bailian Europe, plans to acquire assets related to titanium dioxide from Venator UK for $69.9 million, which includes land, equipment, and intellectual property [3]. - This acquisition aims to enhance production efficiency, reduce costs, and expand the company's global footprint in the titanium dioxide market [3]. Investment Outlook - The company forecasts net profits attributable to shareholders for 2025-2027 to be 2.03 billion, 3.40 billion, and 3.89 billion yuan, respectively, maintaining a "recommended" investment rating [4].