LB Group(SZ:002601) Xin Lang Cai Jing·2025-11-21 06:33Core Viewpoint - Longbai Group's financial performance in Q3 2025 shows a decline in revenue and net profit, primarily due to falling titanium dioxide prices, indicating short-term pressure on the company's earnings [1][2]. Financial Performance - For the first three quarters of 2025, the company's revenue was 19.436 billion yuan, a year-on-year decrease of 6.86%, while the net profit attributable to shareholders was 1.674 billion yuan, down 34.68% year-on-year [1]. - In Q3 2025, the company's revenue was 6.105 billion yuan, a quarter-on-quarter decline of 2.74%, and the net profit was 289 million yuan, down 58.64% quarter-on-quarter [1]. - The gross profit margin for the first three quarters of 2025 was 22.29%, a decrease of 4.66 percentage points year-on-year [1]. Price Trends - The average price of domestic rutile and anatase titanium dioxide in Q3 2025 was 11,785.38 yuan/ton and 14,359.23 yuan/ton, respectively, with year-on-year changes of -15.55% and -11.47% [1]. - The price of sponge titanium in Q3 2025 was 51,303.03 yuan/ton, showing a year-on-year increase of 4.00% [1]. Expense Management - Sales expenses decreased by 26.14% year-on-year, with a sales expense ratio of 1.46%, down 0.38 percentage points [2]. - Financial expenses fell by 28.88% year-on-year, with a financial expense ratio of 1.10%, down 0.34 percentage points [2]. - Management expenses increased by 6.75% year-on-year, with a management expense ratio of 4.02%, up 0.51 percentage points [2]. Cash Flow and Receivables - The net cash flow from operating activities for the first three quarters of 2025 was 2.539 billion yuan, a year-on-year decrease of 2.07% [2]. - The ending cash and cash equivalents balance was 3.065 billion yuan, an increase of 33.90% year-on-year [2]. - Accounts receivable decreased by 10.91% year-on-year, while inventory increased by 1.01% year-on-year [2]. Strategic Acquisition - The company plans to acquire titanium dioxide assets from Venator UK for 69.9 million USD, which will enhance its global industrial layout and product matrix in chloride titanium dioxide [3]. - Venator UK is the only plant under Venator that produces chloride titanium dioxide, with a designed annual capacity of 150,000 tons [3]. Future Outlook - Revenue projections for Longbai Group from 2025 to 2027 are 26.863 billion yuan, 30.228 billion yuan, and 33.087 billion yuan, with year-on-year growth rates of -2.4%, 12.5%, and 9.5% respectively [4]. - Net profit projections for the same period are 2.067 billion yuan, 2.657 billion yuan, and 3.246 billion yuan, with year-on-year growth rates of -4.7%, 28.5%, and 22.2% respectively [4].