Investment Rating - The investment rating for the company is "Accumulate" (maintained) [4][8] Core Views - The company reported a revenue of 13.33 billion yuan for the first half of 2025, a year-on-year decline of 3.34%, and a net profit attributable to shareholders of 1.385 billion yuan, down 19.53% year-on-year [4][5] - The titanium dioxide industry continues to face downward pressure on profitability due to capacity expansion, demand slowdown, and anti-dumping measures, while the new energy business shows improved profitability [4][6] - The company maintains strong performance resilience due to its integrated supply chain and upstream resource guarantees, despite the industry's downturn [6][7] Summary by Sections Financial Performance - The company achieved a titanium dioxide production of 682,200 tons in the first half of 2025, up 5.02% year-on-year, with sales of 612,000 tons, an increase of 2.08% year-on-year [4] - Revenue from titanium dioxide was 8.684 billion yuan, down 7.68% year-on-year, while sponge titanium production reached 36,200 tons, up 9.30% year-on-year, with sales of 38,700 tons, a 25.51% increase [4][5] - The overall gross margin for the company was 23.62%, a decrease of 3.91 percentage points year-on-year, with a net profit margin of 10.48%, down 1.94 percentage points [5] Business Segments - Revenue from iron-based products and zirconium products was 1.169 billion yuan and 515 million yuan, respectively, with year-on-year growth of 10.61% and 18.95% [5] - New energy materials generated revenue of 527 million yuan, reflecting a year-on-year increase of 27.23% [5] Industry Outlook - The titanium dioxide industry is currently at a low point, with prices at their lowest since 2020, and the company is expected to enhance its resource security through upstream integration projects [6][7] - The company is actively expanding its global footprint and adjusting its operational strategies in response to anti-dumping investigations affecting the titanium dioxide sector [8] - Earnings per share (EPS) for 2025 and 2026 are projected to be 1.20 yuan and 1.47 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 14.90 and 12.15 [8]

Investment Rating - The report maintains a "Strong Buy" rating for Longbai Group [2][4]. Core Views - The price of titanium dioxide is at a bottom level, and there is potential for a rebound as demand gradually recovers. The company has recently increased prices for domestic and international customers [3][4]. - Longbai Group is strengthening its upstream mineral resource layout, enhancing its integrated industrial chain advantages. The company is actively developing key projects to increase its titanium concentrate and iron concentrate production capacity [4][6]. Financial Performance Summary - In the first half of 2025, Longbai Group achieved revenue of 13.33 billion yuan, a year-on-year decrease of 3.34%, and a net profit of 1.39 billion yuan, down 19.53% year-on-year. Despite a 2.08% increase in titanium dioxide sales volume to 612,000 tons, revenue from titanium dioxide fell by 7.68% to 8.66 billion yuan due to price declines [3]. - Revenue from other products such as sponge titanium, iron-based products, zirconium products, and new energy materials showed growth, with increases of 12.96%, 10.61%, 18.95%, and 27.23% respectively [3]. Production Capacity and Resource Development - Longbai Group has a titanium dioxide production capacity of 1.51 million tons and sponge titanium capacity of 80,000 tons, ranking among the top globally. The company is working on projects to enhance its titanium concentrate and iron concentrate production capacities significantly [4][6]. Profit Forecast and Valuation - The profit forecast for Longbai Group remains unchanged for 2025-2027, with expected net profits of 2.78 billion yuan, 3.10 billion yuan, and 3.64 billion yuan respectively. The corresponding EPS for these years is projected to be 1.17 yuan, 1.30 yuan, and 1.53 yuan, with current P/E ratios of 15, 13, and 11 times [4][5].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 13.33 billion yuan in the first half of 2025, a decrease of 3.34% year-on-year, and a net profit attributable to shareholders of 1.385 billion yuan, down 19.53% year-on-year [1] - The titanium dioxide industry is facing a supply surplus and declining profit margins, while the profitability of iron-based products and new energy materials has improved [2] - The company is actively promoting upstream resource projects and maintaining a high dividend payout ratio to reward shareholders [3] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 6.282 billion yuan, a decrease of 3.50% year-on-year and a decrease of 11.01% quarter-on-quarter, with a net profit of 699 million yuan, down 9.24% year-on-year but up 1.90% quarter-on-quarter [1] - The average selling price of titanium dioxide decreased by 9.6% to 14,200 yuan per ton in H1 2025, with a gross margin decline of 6.4 percentage points to 27.1% [2] Production and Sales - The company produced 682,200 tons of titanium dioxide in H1 2025, an increase of 5.02% year-on-year, with sales of 612,000 tons, up 2.08% year-on-year [2] - The production of titanium dioxide via sulfate and chloride processes was 463,500 tons and 218,700 tons, respectively, with year-on-year growth of 2.16% and 11.64% [2] Upstream Resource Development - The company is advancing two key projects: the joint development of the Hongge North Mine and the Xujia Gou Iron Mine, aiming for an annual titanium concentrate capacity of 2.48 million tons and iron concentrate capacity of 7.6 million tons [3] - The company has distributed over 19.3 billion yuan in dividends since its listing, with a cash dividend of 1.5 yuan per 10 shares in June 2025, totaling 1.186 billion yuan [3] Profit Forecast and Valuation - The company’s net profit forecasts for 2025, 2026, and 2027 are 2.957 billion yuan, 3.367 billion yuan, and 3.753 billion yuan, respectively [3] - The report provides a detailed financial forecast, including revenue growth rates and profit margins for the upcoming years [4][11]