LB Group(SZ:002601) EBSCN·2025-08-19 08:27Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 13.33 billion yuan in the first half of 2025, a decrease of 3.34% year-on-year, and a net profit attributable to shareholders of 1.385 billion yuan, down 19.53% year-on-year [1] - The titanium dioxide industry is facing a supply surplus and declining profit margins, while the profitability of iron-based products and new energy materials has improved [2] - The company is actively promoting upstream resource projects and maintaining a high dividend payout ratio to reward shareholders [3] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 6.282 billion yuan, a decrease of 3.50% year-on-year and a decrease of 11.01% quarter-on-quarter, with a net profit of 699 million yuan, down 9.24% year-on-year but up 1.90% quarter-on-quarter [1] - The average selling price of titanium dioxide decreased by 9.6% to 14,200 yuan per ton in H1 2025, with a gross margin decline of 6.4 percentage points to 27.1% [2] Production and Sales - The company produced 682,200 tons of titanium dioxide in H1 2025, an increase of 5.02% year-on-year, with sales of 612,000 tons, up 2.08% year-on-year [2] - The production of titanium dioxide via sulfate and chloride processes was 463,500 tons and 218,700 tons, respectively, with year-on-year growth of 2.16% and 11.64% [2] Upstream Resource Development - The company is advancing two key projects: the joint development of the Hongge North Mine and the Xujia Gou Iron Mine, aiming for an annual titanium concentrate capacity of 2.48 million tons and iron concentrate capacity of 7.6 million tons [3] - The company has distributed over 19.3 billion yuan in dividends since its listing, with a cash dividend of 1.5 yuan per 10 shares in June 2025, totaling 1.186 billion yuan [3] Profit Forecast and Valuation - The company’s net profit forecasts for 2025, 2026, and 2027 are 2.957 billion yuan, 3.367 billion yuan, and 3.753 billion yuan, respectively [3] - The report provides a detailed financial forecast, including revenue growth rates and profit margins for the upcoming years [4][11]