LB Group(SZ:002601) 市值风云·2025-12-11 10:11Core Viewpoint - Titanium dioxide, known as titanium white, is a key chemical product and a barometer of economic development, with China holding significant influence in this sector, particularly through Longbai Group, which has become a global leader in titanium dioxide production [3][4]. Group 1: Company Overview - Longbai Group, formerly known as Baililian, transformed into the largest titanium dioxide manufacturer in China after acquiring Longmang Titanium Industry in 2016 for 9 billion yuan, marking a significant merger in the industry [4]. - The acquisition allowed Longbai Group to control the entire supply chain from vanadium-titanium magnetite to titanium concentrate and titanium dioxide, enhancing its cost control capabilities [4][5]. - As of 2023, Longbai Group's titanium dioxide production capacity reached 1.51 million tons, surpassing international competitors and establishing it as the largest producer globally [5]. Group 2: Production and Cost Advantages - Longbai Group employs both sulfate and chloride processes for titanium dioxide production, with a focus on the more efficient chloride process, which is encouraged by the state [5]. - The company has a significant cost advantage, with production costs approximately 1,000 yuan per ton lower than its peers, providing a buffer during industry downturns [5][6]. - The innovative "sulfur-chlorine coupling" model recycles waste acid from the sulfate process, further reducing production costs and addressing environmental concerns [6]. Group 3: Financial Performance - Despite its strong production capacity and low costs, Longbai Group faced a decline in performance due to macroeconomic pressures and supply-demand imbalances, with a 6.9% year-on-year drop in revenue to 19.45 billion yuan in the first three quarters of 2025 [8]. - Net profit attributable to shareholders fell significantly by 34.7% to 1.67 billion yuan, with the third quarter alone seeing a 65.7% drop in net profit [10][12]. - The decline in profitability was primarily driven by falling titanium dioxide prices, despite record production and sales volumes [12]. Group 4: Market Challenges and Strategic Response - Longbai Group's international revenue decreased by 10.8% in the first half of 2025 due to anti-dumping investigations and high tariffs imposed by the EU, India, and Brazil [16][17]. - In response, the company is shifting its export focus to emerging markets in the Middle East and Southeast Asia, where demand is strong and trade barriers are lower [17]. - Longbai Group has maintained a high dividend payout ratio, distributing nearly all profits to shareholders, reflecting its commitment to returning value to investors [17].