LB Group(SZ:002601) Guohai Securities·2025-10-17 05:59Investment Rating - The report maintains a "Buy" rating for Longbai Group (002601) [1] Core Views - Longbai Group is accelerating its global expansion through various initiatives, particularly in the titanium dioxide business, which is expected to see both volume and price increases [3][4] - The acquisition of Venator UK's titanium dioxide assets is aimed at establishing a stronghold in the European market, enhancing production capabilities and optimizing sales structures [9][10] - The establishment of subsidiaries in Malaysia and the UK is part of the company's strategy to mitigate the impact of anti-dumping duties and strengthen its global presence [12] Financial Performance and Projections - As of October 16, 2025, Longbai Group's stock price is 19.45 CNY, with a market capitalization of approximately 46.41 billion CNY [6] - Revenue projections for 2025-2027 are estimated at 295.49 billion CNY, 318.89 billion CNY, and 340.26 billion CNY respectively, with corresponding net profits of 27.63 billion CNY, 33.48 billion CNY, and 40.10 billion CNY [14][15] - The company is expected to maintain a strong return on equity (ROE) of 12% in 2025, increasing to 16% by 2027 [15] Market Position and Strategy - Longbai Group is the largest titanium dioxide producer globally, with a production capacity of 1.51 million tons per year for titanium dioxide and 80,000 tons per year for sponge titanium [13] - The company is one of the few suppliers that utilize both sulfate and chloride processes for titanium dioxide production, allowing for a diversified product offering [13] - The recent increase in titanium dioxide prices, driven by market demand, positions the company favorably for future growth [13]