LB Group(SZ:002601) Capital Securities·2025-09-17 08:21Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's performance is under short-term pressure, but it is actively expanding overseas production capacity while waiting for market recovery [5] - The company reported a revenue of 133.42 billion yuan for the first half of 2025, a year-on-year decrease of 3.35%, and a net profit attributable to shareholders of 13.85 billion yuan, down 19.53% year-on-year [7] - The company is facing challenges due to a decline in titanium dioxide prices, but it maintains a strong position in the titanium dioxide and sponge titanium markets, with a total production capacity of 1.51 million tons per year for titanium dioxide [7] - The company is implementing an overseas expansion strategy to mitigate the impact of anti-dumping measures on its exports [7] - The company is expected to achieve net profits of 28.37 billion yuan, 35.32 billion yuan, and 43.07 billion yuan for the years 2025 to 2027, with corresponding EPS of 1.19 yuan, 1.48 yuan, and 1.81 yuan [7] Summary by Sections Financial Performance - Revenue for 2024 is projected at 275.13 billion yuan, with a growth rate of 2.8%, and net profit is expected to be 21.68 billion yuan, down 32.8% year-on-year [6] - The company’s titanium dioxide production for the first half of 2025 was 682,200 tons, a year-on-year increase of 5.02% [7] Market Position - The company has a leading position in the titanium dioxide and sponge titanium markets, with significant production capacities [7] - The company is expanding its upstream titanium ore resources to strengthen its supply chain [7] Future Outlook - The company is expected to see a gradual recovery in profitability, with net profit growth projected at 30.9% in 2025 and 24.4% in 2026 [6][7] - The company’s integrated supply chain and strong market position are expected to support its long-term growth [7]