LB Group(SZ:002601) Great Wall Securities·2025-09-08 10:37Investment Rating - The report maintains a "Buy" rating for Longbai Group, expecting the stock price to outperform the industry index by over 15% in the next six months [5][11]. Core Views - The company's short-term performance is negatively impacted by the decline in product prices, particularly titanium dioxide, but there is optimism regarding the enhancement of titanium ore resource reserves [1][10]. - The company is actively pursuing an overseas expansion strategy to mitigate the impact of anti-dumping duties imposed by various countries [10][11]. Financial Performance Summary - Revenue Forecast: Projected revenues for 2025-2027 are 29.26 billion, 32.24 billion, and 34.07 billion yuan, with year-on-year growth rates of 6.3%, 10.2%, and 5.7% respectively [11]. - Net Profit Forecast: Expected net profits for the same period are 2.94 billion, 3.56 billion, and 4.23 billion yuan, with growth rates of 35.7%, 20.8%, and 18.9% respectively [11]. - Earnings Per Share (EPS): EPS is projected to be 1.23, 1.49, and 1.77 yuan for 2025, 2026, and 2027 respectively [11]. Product Performance Summary - Sales and Production: In the first half of 2025, the company reported revenues of 8.664 billion, 1.49 billion, and 1.169 billion yuan from titanium dioxide, sponge titanium, and iron products, with year-on-year changes of -7.68%, 12.96%, and 10.61% respectively [2][3]. - Price Trends: The average prices for titanium dioxide products decreased significantly in the first half of 2025, with a decline of 13.32% for sulfate titanium dioxide and 7.23% for chloride titanium dioxide [2]. Cost and Expense Summary - Cost Management: The company experienced a decrease in sales expenses by 15.84% and financial expenses by 55.23% in the first half of 2025, while management expenses increased by 12.83% [3]. - Gross Margin: The gross margin for titanium dioxide products was reported at 27.11%, reflecting a year-on-year decrease of 6.40 percentage points [2]. Strategic Initiatives - Resource Expansion: The company is advancing its upstream titanium ore projects, aiming to enhance its resource reserves and integrate its industrial chain [9][11]. - International Strategy: In response to anti-dumping investigations, the company is implementing an overseas strategy to establish production facilities closer to end markets, thereby reducing exposure to high tariffs [10].