Investment Rating - The industry rating is "Overweight" (maintained) [5] Core Insights - The demand peak season is approaching, and the outlook for viscose staple fiber is expected to improve. The viscose staple fiber sector is subject to policy restrictions on new product construction. Recently, the operating rate of viscose staple fiber has been at a high level, with rapid inventory decline and improved profit margins. The traditional demand peak season of "Golden September and Silver October" is expected to boost demand for viscose staple fiber [6][12]. Industry Overview - From September 1 to September 5, 2025, the basic chemical industry experienced a weekly decline of 1.36%, ranking 20th among all Shenwan first-level industries in terms of weekly performance. The top five stocks in terms of weekly gains in the basic chemical industry were: Dazhongnan, Lushan New Materials, Taihe Technology, Lingpai Technology, and Jianbang Co., Ltd. The top five stocks in terms of weekly losses were: Tongyi Zhong, Meilian New Materials, Jianye Co., Ltd., *ST Yatai, and Akoli [5][10]. Investment Recommendations - With the traditional demand peak season approaching, the outlook for viscose staple fiber is expected to improve. Mid-term investment focus in the basic chemical industry includes: 1. Refrigerant industry constrained by quotas (Juhua Co., Ltd., Sanmei Co., Ltd., Yonghe Co., Ltd., Dongyue Group); 2. Industries benefiting from "anti-involution," such as titanium dioxide (Longbai Group); 3. Industries driven by domestic demand to hedge against tariff impacts, such as phosphate fertilizer (Yuntianhua) and civil explosives (Guangdong Hongda) [8][25].

Core Viewpoint - The article discusses the recent developments in lithium iron phosphate (LFP) projects in Guizhou, particularly the announcement of a new 300,000-ton LFP project by Guizhou Phosphate Zhonghe Materials Co., Ltd. This project indicates a renewed commitment from leading companies like Zhonghe Titanium White to the lithium battery materials market despite previous project terminations due to structural overcapacity in LFP production [2][3][7]. Summary by Sections Project Announcement - Guizhou Province has announced a new LFP project with an annual production capacity of 300,000 tons, with the first phase targeting 150,000 tons. The project will occupy 129,600 square meters and includes production facilities and warehouses [2]. Company Background - Guizhou Phosphate Zhonghe Materials Co., Ltd. was established in April 2025 with a registered capital of 100 million yuan. It is a joint venture between Guizhou Phosphate Group (65% ownership) and Zhonghe Titanium White (35% ownership). The company focuses on manufacturing and researching electronic materials and new materials technology [2]. Market Context - The lithium battery industry is experiencing extended capacity expansion cycles, resource cost reductions, and limited demand growth. This has led to structural overcapacity in LFP production, causing challenges for companies like Zhonghe Titanium White [3]. Financial Performance - In the first half of 2025, Zhonghe Titanium White reported revenues of 3.77 billion yuan, a year-on-year increase of 19.66%. However, net profit decreased by 14.83%, with a gross margin of 13.21%, down 5.3 percentage points from the previous year. The revenue from titanium dioxide sales accounted for 80.17% of total sales, while new energy materials contributed only 3.40% [4][6]. Production Capacity - As of now, Zhonghe Titanium White has a production capacity of nearly 550,000 tons per year for titanium dioxide, 500,000 tons for phosphate rock, 120,000 tons for yellow phosphorus, and 100,000 tons for LFP [5]. Future Outlook - Despite the low revenue contribution from new energy materials, there was a significant year-on-year growth of 3029.26%, indicating that LFP products have started generating revenue. The successful advancement of the new project in Kaiyang, along with technological iterations, could further open up the market and help achieve transformation goals for Zhonghe Titanium White [7].

Core Viewpoint - Guangdong Huiyun Titanium Industry Co., Ltd. has disclosed two invention patents granted by the National Intellectual Property Administration, focusing on enhancing the performance of titanium dioxide used in printing inks, which is expected to boost the company's technological innovation and core competitiveness in the long run [2] Group 1: Patent Innovations - The newly granted patent relates to a titanium dioxide suitable for printing inks, aimed at improving its performance in this application [2] - Earlier in June, the company announced two other patents related to modified titanium dioxide technology, indicating a period of high innovation output [2] Group 2: Technological Development - The company views independent intellectual property as a crucial part of its core competitiveness, leveraging provincial technology centers and research platforms to enhance its technological reserves and R&D capabilities [2] - Through technological innovation and a series of independent intellectual properties, the company continuously optimizes production processes and improves product performance, maintaining strong competitiveness in a fierce market [2] Group 3: Green Production Initiatives - In addition to product and process innovations, the company has invested significant resources in green production technologies, achieving important results in various low-carbon technologies that enhance energy efficiency and environmental safety [3] - The company has developed continuous acid leaching technology, MVR titanium liquid concentration technology, low-temperature waste heat recovery technology, and continuous crystallization technology, showcasing its core advantages in safe and green production [3]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with a focus on maintaining high operational rates despite a challenging market for titanium dioxide prices [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 13.342 billion yuan, a year-on-year decrease of 3.35%, and a net profit attributable to shareholders of 1.385 billion yuan, down 19.53% [1]. - For Q2 2025, revenue was 6.282 billion yuan, reflecting a year-on-year decline of 3.5% and a quarter-on-quarter decrease of 11.01%. The net profit for Q2 was 699 million yuan, down 9.24% year-on-year but up 1.90% quarter-on-quarter [1]. Market Conditions - Titanium dioxide prices have remained stable at a low level, with the average price for Q2 2025 at 14,300 yuan per ton, down 11.6% year-on-year and 1.2% quarter-on-quarter [2]. - The company's titanium dioxide sales volume for the first half of 2025 was 612,000 tons, an increase of 2.08% year-on-year, with domestic sales accounting for 43.7% and exports 56.3% [2]. Operational Insights - The industry operating rate for titanium dioxide in Q2 2025 was around 70%, with the company maintaining a higher operating rate of 90.36% [2]. - The company is expected to benefit from new capacity additions in the domestic market, with 1.3 million tons expected in 2025 and 1.6 million tons in 2026, which may lead to a recovery in supply-demand dynamics post-peak production [2]. Strategic Developments - The company is focusing on expanding its titanium ore production capacity, with plans to double its controlled vanadium-titanium magnetite resources and extend the lifespan of its mines [3]. - A strategic cooperation agreement with Sichuan Resources Group aims to develop the Honggenan mine, which has significant iron ore and TiO2 reserves, enhancing the company's resource control [3]. Investment Outlook - The company is positioned as a global leader in titanium dioxide and sponge titanium production, with a strong cost advantage compared to overseas competitors [3]. - Projected net profits for 2025-2027 are 2.824 billion, 3.821 billion, and 4.256 billion yuan, representing year-on-year growth rates of 30.2%, 35.3%, and 11.4% respectively [3].

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][17]. Core Views - The company achieved a revenue of 13.342 billion yuan in the first half of 2025, a year-on-year decrease of 3.35%, with a net profit attributable to shareholders of 1.385 billion yuan, down 19.53% year-on-year. In Q2 2025, revenue was 6.282 billion yuan, a decrease of 3.5% year-on-year and 11.01% quarter-on-quarter, while net profit was 699 million yuan, down 9.24% year-on-year but up 1.90% quarter-on-quarter [1]. - The company is expected to see significant growth in the mining sector in 2026, with new capacity additions anticipated [1][7]. Financial Performance Summary - Total revenue for 2024 is projected at 27.539 billion yuan, with a year-on-year growth rate of 2.8%. For 2025, revenue is expected to increase to 30.386 billion yuan, reflecting a growth rate of 10.3%, and further to 34.954 billion yuan in 2026, with a growth rate of 15.0% [3]. - The net profit attributable to shareholders is forecasted to be 2.169 billion yuan in 2024, with a significant recovery to 2.824 billion yuan in 2025 (30.2% growth) and 3.821 billion yuan in 2026 (35.3% growth) [3]. - The company’s earnings per share (EPS) is expected to rise from 0.91 yuan in 2024 to 1.18 yuan in 2025 and 1.60 yuan in 2026 [3]. Market Position and Competitive Advantage - The company holds the leading position in the titanium dioxide market, with a strong operational capacity and cost advantages compared to international competitors. The report highlights the company's ability to maintain high operating rates despite market fluctuations [7]. - The company is actively expanding its titanium ore resources, which is expected to enhance its pricing power and solidify its market position [7]. Future Outlook - The report anticipates that the company will benefit from the upcoming increase in domestic production capacity, with an expected addition of 1.3 million tons in 2025 and 1.6 million tons in 2026. This is expected to lead to a recovery in supply-demand dynamics post-peak production [7]. - The strategic partnership with Sichuan Resources Group for the development of the Honggen South Mine is expected to further strengthen the company's resource control and operational capabilities [7].

Core Insights - The company reported a revenue of 835 million yuan for the first half of 2025, representing a year-on-year growth of 5.18% [1] - The net profit attributable to shareholders was 5.0984 million yuan, showing a significant decline of 73.17% compared to the previous year [1] - The decrease in net profit is primarily attributed to fluctuations in raw material prices leading to increased costs [1] Revenue and Profitability - The company achieved revenue growth despite market demand fluctuations by actively expanding market channels and increasing product market coverage [1] - The net profit margin was recorded at 0.61%, which is a decrease of 1.78 percentage points from the same period last year [1] - Operating cash flow turned positive at 113 million yuan, improving from a negative position year-on-year, providing a safeguard for market risk management and sustainable development [1] Cost Management - The company implemented measures to alleviate cost pressures, including strengthening supply chain management and reducing raw material procurement costs [1]

Summary of Conference Call Notes Industry Overview - The conference call discusses the supply-side reform across various industries, highlighting a slower capacity reduction compared to previous reforms. The overall capacity and inventory cycles for non-financial enterprises in the second quarter remain at the bottom, indicating a need for time and policy accumulation for recovery [3][4]. Key Points and Arguments - **Supply Capacity Assessment**: Analysts evaluate supply capacity using three dimensions: current supply capacity (capacity utilization rate and inventory), future supply changes (expansionary capital expenditure), and industry profitability (gross margin and proportion of loss-making enterprises) [4][5]. - **Manufacturing Sector**: - Industries such as construction, chemicals, and coke are categorized as "three lows" (low capacity utilization, low inventory, low expansionary capital expenditure), indicating low production willingness and limited future production capacity, accelerating capacity clearance [6]. - In contrast, cyclical products like textile chemicals, glass fiber, and fluorochemicals show profit growth, particularly fluorochemicals [6]. - Manufacturing areas like inverters, silicon materials, and silicon wafers are performing well, while lithium batteries and photovoltaic cell components are at the left-side bottom [6]. - **Consumer Goods Sector**: Chemical pharmaceuticals and clothing/home textiles are performing well, while traditional Chinese medicine is positioned in the middle to later stages of the left side [6]. - **TMT Sector**: Electronic chemicals, integrated circuit manufacturing, and security equipment are in relatively good positions, with no observed left-side bottom industries [2][6]. Additional Important Insights - The current supply-side framework is based on listed company data, reflecting the latest industry conditions as of the second quarter. The introduction of anti-involution policies has led to some positive factors across industries, but the overall situation remains at the bottom, requiring further time and policy efforts for noticeable changes [3]. - The assessment of supply capacity includes measuring capacity utilization through fixed asset turnover ratios and inventory through cumulative year-on-year comparisons over the past decade [4][5]. - Continuous tracking of data across different sectors is essential for making accurate judgments regarding potential investment opportunities and risks [6].

Group 1 - The company, Huiyun Titanium Industry, announced the acquisition of two invention patent certificates issued by the National Intellectual Property Administration [1]

Core Viewpoint - The company, Zhongke Titanium White (002145.SZ), has announced a share buyback program, indicating a strategic move to enhance shareholder value and confidence in the company's future prospects [1] Summary by Categories Share Buyback - As of August 31, 2025, the company has repurchased a total of 57.1155 million shares, which represents 1.5004% of the company's current total share capital [1] - The total amount spent on the share buyback is 245 million yuan, excluding transaction fees [1]

Group 1 - The company, Zhongke Titanium White (002145.SZ), announced a share buyback program, having repurchased a total of 57.1155 million shares as of August 31, 2025 [1] - The repurchased shares account for approximately 1.5004% of the company's total share capital [1] - The total amount spent on the share buyback is 245 million yuan, excluding transaction fees [1]