LB Group (002601 CH): 2Q26 preview: A key beneficiary of sulphur inflation

研报英文原文证据摘录

LB Group (002601 CH): 2Q26 preview: A key beneficiary of sulphur inflation

ing 52-WEEK PRICE (RMB)

earnings momentum.

25.00

Chloride TiO2 expansion as a business strategy. LB believes TiO2 demand is linked

to the c3% global GDP growth in recent years rather than China’s property cycle. 18.50

Therefore, LB continues to advance international expansion in overseas chloride-route 06/25 12/25 06/2612.00

capacity to mitigate anti-dumping risks and to expand its global footprint. LB views Target price: 20.80 High: 23.35 Low: 13.93 Current: 17.37

chloride-routes as the key long-term direction, with a c1mtpa high-end global market

still dominated by overseas players. LB aims to rely on technology upgrades and Source: LSEG IBES, HSBC Qianhai Securities estimates

overseas expansion (via the construction of other plants) to increase its share and

influence in the global high-end market, with a long-term target of c2mtpa in TiO2 sales Yi Ru* (Reg. No. S1700520120001)

(which corresponds to a global market share of more than 25%). Head, A-share Petrochem & New Materials Research

HSBC Qianhai Securities Limited

Incremental ore volume to bring additional profit from 2027. LB said 2026 ore output yi.ru@hsbcqh.com.cn

+86 21 5066 2008

will decline as it is in the process of obtaining approvals for mining exploration, although

progress remains smooth, with approvals expected in 2H26 and production due to ramp

up from mid-2027. Once fully ramped up, LB expects self-produced titanium ore output to * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations.

double, further enhancing raw material self-sufficiency and cost competitiveness. LB

believes recent weakness in the price of ore is the result of temporarily lower TiO2