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]

Investment Rating - The investment rating for Longbai Group is "Buy" (maintained) [1] Core Views - The price of titanium dioxide is expected to stabilize and rebound, with ongoing integration of two mines [1] - The closure of overseas titanium dioxide enterprises is likely to improve the global supply-demand balance for titanium dioxide [4] - The company is actively advancing its internationalization process for titanium dioxide and steadily progressing with the integration of two key mining projects [6] Financial Summary and Valuation Indicators - Revenue for 2023 is reported at 26,765 million, with a year-on-year growth of 11.0%. Projections for 2025, 2026, and 2027 are 29,859 million, 30,935 million, and 31,983 million respectively, with growth rates of 8.5%, 3.6%, and 3.4% [7] - The net profit attributable to the parent company for 2023 is 3,226 million, with a decline of 5.6%. Expected net profits for 2025, 2026, and 2027 are 2,838 million, 3,525 million, and 4,324 million, reflecting growth rates of 30.9%, 24.2%, and 22.7% respectively [7] - The projected EPS for 2025, 2026, and 2027 are 1.19, 1.48, and 1.81 respectively, with corresponding P/E ratios of 16.4, 13.2, and 10.8 [4][7] Industry Insights - The domestic titanium dioxide industry operating rate is currently at 60.68%, a decrease of 4.21% from the previous period, indicating a decline in overall industry load [5] - Inventory levels among domestic titanium dioxide producers have decreased by 1.72%, suggesting a potential increase in prices due to reduced supply expectations [5]