Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report expresses optimism regarding the company's international expansion in titanium dioxide (TiO2) and the potential for capacity expansion at the mining end, despite the current pressure on Q3 earnings [1] - The company reported a revenue of 19.451 billion yuan for the first three quarters of 2025, a year-on-year decrease of 6.87%, and a net profit attributable to shareholders of 1.674 billion yuan, down 34.68% year-on-year [1] - The report anticipates a recovery in titanium dioxide prices as demand stabilizes, while titanium concentrate prices are expected to remain high due to a tight supply-demand balance [2][3] Financial Summary - For 2025, the expected net profit attributable to shareholders is projected to be 2.088 billion yuan, with an EPS of 0.88 yuan, corresponding to a PE ratio of 21.4 times [4] - The company’s revenue is expected to grow from 28.308 billion yuan in 2025 to 32.231 billion yuan in 2027, reflecting a compound annual growth rate [4] - The gross margin is projected to decline to 21.5% in 2025 but is expected to recover to 26.9% by 2027 [4] Market and Operational Insights - The average market price for titanium dioxide in Q3 2025 was 13,386 yuan per ton, down 8.3% from Q2, indicating pressure on profitability [2] - The company is actively pursuing internationalization by expanding its overseas market share and establishing production bases abroad, including potential acquisitions and new subsidiaries in Malaysia and the UK [3] - The integration of two mining projects is expected to enhance raw material security and support future capacity growth [3]

Group 1 - Venator has closed its German plant and suspended production in Asia due to financial difficulties, with an annual titanium dioxide production capacity of 650,000 tons, accounting for approximately 6.6% of global capacity [1] - The shutdown of overseas titanium dioxide enterprises is expected to improve the global supply-demand balance for titanium dioxide [1] - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 2.838 billion (-6.82%), 3.525 billion (-11.62%), and 4.324 billion (-9.61%) yuan, with corresponding EPS of 1.19 (-0.29), 1.48 (-0.48), and 1.81 (-0.40) yuan [1] Group 2 - The domestic titanium dioxide industry operating rate was 60.68%, a decrease of 4.21% week-on-week, indicating a decline in overall industry load [1] - Domestic titanium dioxide production inventory decreased by 1.72% week-on-week, with some major manufacturers halting production, leading to expectations of rising prices due to reduced supply [1] - The company is actively promoting its internationalization strategy in response to anti-dumping investigations in the EU, Brazil, and India, aiming to expand its overseas market share [2] Group 3 - The company is enhancing upstream raw material security and advancing two key projects: the joint development of the Hongge North Mine and the development of the Xujia Gou Iron Mine, which are expected to increase mining capacity in the future [2]