Investment Rating - The report maintains an "Overweight" rating for the company [6][4]. Core Views - The company reported a revenue of 19.45 billion RMB for the first three quarters of 2025, a decrease of 6.9% year-on-year, with a net profit attributable to shareholders of 1.67 billion RMB, down 35% year-on-year [1][6]. - The company is positioned as a leader in the titanium dioxide sector, showing resilience in profitability during the industry's downturn [1][4]. - The company is accelerating its overseas expansion and has announced a dividend of 0.1 RMB per share for Q3, reflecting management's confidence in the company's future [3][4]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a net profit of 290 million RMB, down 66% year-on-year and 59% quarter-on-quarter, primarily due to rising raw material costs [1][2]. - The average price of titanium dioxide in Q3 2025 was 13,230 RMB/ton for the sulfate method and 17,300 RMB/ton for the chloride method, showing a year-on-year decline of 13% and 6% respectively [2][3]. - The company's comprehensive gross margin decreased by 4.7 percentage points year-on-year to 22.3% for the first three quarters of 2025 [2]. Market Outlook - The titanium dioxide market remains weak, but the company is expected to benefit from its integrated cost advantages and ongoing development of its mining projects [3][4]. - The company plans to acquire overseas titanium dioxide assets to mitigate the impact of anti-dumping measures from the EU, enhancing its international presence [3][4]. Profit Forecast and Valuation - The profit forecast for the company has been revised downwards, with expected net profits of 2.1 billion RMB, 3.0 billion RMB, and 3.5 billion RMB for 2025, 2026, and 2027 respectively [4][9]. - The target price is set at 21.59 RMB, based on a 17x PE for 2026, reflecting the company's strong profitability resilience [4][11].