Titan Energy Chemical Co., Ltd. (002145)

Individual Stock Analysis Report　|　Industry: Titanium Dioxide and Phosphorus Chemicals, New Energy Materials　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; MA and Bollinger Bands are approximate calculations based on publicly available historical closing prices, while MACD and RSI are the latest available technical snapshots, and some indicators may not be synchronized with the September 11 close

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Titan Energy Chemical’s performance recovered markedly in the first half of 2026: operating revenue reached RMB 4.557 billion, up 20.89% year on year; net profit attributable to the parent reached RMB 420 million, up 61.93%; and net profit attributable to the parent excluding non-recurring items was approximately RMB 364 million, up 65.20%. Growth was mainly driven by the recovery in prices of titanium dioxide, yellow phosphorus and iron phosphate, as well as synergies, scale benefits and cost advantages among the titanium chemicals, phosphorus chemicals and new energy materials businesses. However, net cash flow from operating activities was RMB 355 million during the same period, down 23.57% year on year, so the conversion of profit growth into cash flow still requires monitoring.

The company remains highly dependent on titanium dioxide. In 2025, titanium dioxide revenue was RMB 5.882 billion, accounting for 75.57% of operating revenue; output was 499,000 tonnes and sales were 484,500 tonnes, against designed capacity of approximately 700,000 tonnes per year. The business benefits from scale, brand recognition and export channels, but its gross margin fell to 9.19% in 2025, down 5.84 percentage points from 2024, mainly due to loose industry supply, price competition, and pressure from titanium concentrate and energy costs. The company still relies primarily on externally purchased titanium concentrate, leaving it with weaker resource self-sufficiency than industry leader Lomon Billions.

The company is seeking to upgrade its business mix through phosphorus chemicals and new energy materials. The gross margin of phosphorus chemicals was 30.16% in 2025, and its phosphate ore–yellow phosphorus value chain provides a degree of resource synergy. Iron phosphate is produced using ferrous sulfate, a by-product of titanium dioxide production; revenue reached RMB 360 million in 2025, and the business remains in its early volume-ramp phase. The company recently proposed constructing a 600,000-tonne-per-year iron phosphate project, as well as a 400,000-tonne-per-year titanium dioxide and 1.4-million-tonne-per-year heptahydrate ferrous sulfate project. The two projects are expected to require total investments of RMB 5.462 billion and RMB 5.538 billion, respectively. Uncertainty remains regarding approvals, financing, construction schedules and market absorption after commissioning.

As of September 11, 2026, the share price closed at RMB 4.17, close to its 52-week low and below the MA5, MA10 and MA20. MACD was below the zero axis, while net institutional fund flows were negative, indicating a weak short-term technical structure. RSI6 was approximately 34, close to the lower boundary of the weak range but without a clear bullish divergence. RMB 4.13–4.17 is the current support area to monitor, while RMB 4.27–4.32 is the main moving-average resistance area. Based on publicly disclosed financial statements and the closing price, the company’s approximate trailing-twelve-month P/E ratio is 30.4x and its P/B ratio is approximately 1.19x. However, there are no verifiable institutional consensus earnings forecasts for 2026–2028.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Titanium chemicals: The main product is rutile titanium dioxide, used in coatings, plastics, paper, inks, chemical fibers and rubber; 2025 revenue was RMB 5.882 billion, accounting for 75.57% of operating revenue, with output of 499,000 tonnes and sales of 484,500 tonnes, against designed capacity of nearly 700,000 tonnes per year
• Phosphorus chemicals: Includes phosphate ore and yellow phosphorus; 2025 phosphate ore revenue was RMB 202 million, accounting for 2.60%, while yellow phosphorus revenue was RMB 709 million, accounting for 9.11%; phosphate ore capacity is 500,000 tonnes per year and yellow phosphorus capacity is 120,000 tonnes per year
• New energy materials: Primarily iron phosphate, produced using ferrous sulfate by-product from titanium dioxide together with phosphorus-chemical raw materials; 2025 revenue was RMB 360 million, accounting for 4.62%, with output of 41,100 tonnes and sales of 39,100 tonnes; capacity is 100,000 tonnes per year and the business remains in its early volume-ramp phase
• By-products and logistics: Includes by-products such as ferrous sulfate and logistics transportation services; logistics service revenue was RMB 335 million in 2025, accounting for 4.31%

2.3 Position in the Upstream and Downstream Value Chain and Cost–Profit Structure

The company is positioned in the upper part of the midstream of the value chain. Its titanium dioxide business is large-scale sulfuric-acid-process production, with advantages in scale, brand, process technology and export channels. Its phosphorus chemicals business extends upstream into phosphate ore and includes yellow phosphorus capacity, creating a degree of “ore–phosphorus” integration. Its new energy materials business uses ferrous sulfate by-product from titanium dioxide to produce iron phosphate, but as of 2025 it had not yet become the main source of profit.

• Key inputs for titanium dioxide include titanium concentrate, sulfuric acid, electricity, steam and other energy, production auxiliaries and packaging materials. In 2025, raw-material costs accounted for RMB 3.523 billion, or 65.96%, of titanium dioxide operating costs; energy costs were RMB 881 million, or 16.50%. Together, the two categories exceeded 82%, making profitability highly sensitive to titanium concentrate, sulfuric acid and energy prices.
• The company still relies primarily on externally purchased titanium concentrate. It obtains raw materials through strategic cooperation with titanium concentrate producers in northwest China and uses by-product sulfuric acid from industrial parks to reduce sulfuric acid procurement costs. Compared with Lomon Billions, which owns titanium ore resources and has a relatively high self-sufficiency rate for titanium concentrate, the company’s resource self-sufficiency is relatively weak.
• Key raw materials for yellow phosphorus include phosphate rock, coke, silica and substantial electricity. The Shuangyang phosphate mine in Kaiyang, Guizhou, has approximately 13.60 million tonnes of resource reserves, raw-ore production capacity of 500,000 tonnes per year and an average ore grade of approximately 30%. Phosphate ore is primarily produced for internal use, with priority given to yellow phosphorus production. Public disclosures have also cited approximately 13.50 million tonnes; the latest mineral-resource reports and annual reports should be taken as the definitive reference.
• Procurement from the five largest suppliers in 2025 amounted to RMB 2.192 billion, accounting for 25.81% of total annual procurement, with no related-party procurement. Supplier concentration is relatively low, indicating diversified procurement sources. However, titanium concentrate, sulfuric acid and energy are largely commodities, so the company remains primarily a price taker overall.
• The company’s cost buffers mainly come from bulk procurement, long-term cooperation, by-product sulfuric acid from industrial parks and phosphate ore self-sufficiency. Titanium concentrate and energy, however, remain driven by market prices, and the company does not yet have comprehensive control over upstream costs.
• Downstream applications for titanium dioxide include architectural coatings, industrial coatings, plastics, paper and decorative paper, inks, chemical fibers and rubber. Demand is related to real estate, construction and decoration, automobiles, home appliances, plastic products and export markets.
• In 2025, domestic sales accounted for 56.43% of titanium dioxide sales value and overseas sales accounted for 43.57%. The relatively high export ratio makes overseas sales an important market channel.
• Downstream applications for phosphate ore and yellow phosphorus include phosphate fertilizers, feed additives, thermal-process phosphoric acid, organophosphorus pesticides, phosphorus-based flame retardants, electronic chemicals and lithium iron phosphate-related new energy materials.
• The five largest customers accounted for combined sales of RMB 2.825 billion in 2025, or 36.28% of total annual sales. The largest customer accounted for 12.16%; Wengfu International Trade Co., Ltd. accounted for 8.03%; and Hefei Gotion High-tech Kehong New Energy Technology Co., Ltd. accounted for 4.63%. These concentration figures are based on the 2025 annual report. Some customers were disclosed anonymously as “Customer One” and “Customer Three,” making the customer structure impossible to fully verify. The latest annual report should be used as the reference.
• Titanium dioxide is highly commoditized, and customers generally have considerable pricing power. During periods of ample supply, downstream coatings, plastics and trading customers may request price reductions, longer payment terms or increased rebates. The company’s selling prices generally follow industry market prices, limiting its independent pricing power.
• As of December 31, 2025, accounts receivable were RMB 1.151 billion, equivalent to 14.79% of annual operating revenue and approximately 3.23x net profit attributable to the parent. Accounts receivable were approximately RMB 966 million in 2024, or approximately 14.05% of operating revenue, indicating an increase in the ratio of receivables to revenue. Inventory was RMB 1.762 billion at the end of 2025, accounting for 9.04% of total assets and increasing substantially from 2024. The annual report attributed this mainly to capacity release and higher period-end inventory. These figures indicate that revenue expansion has been accompanied by greater working-capital usage and that customer bargaining power is not weak.
• The five largest customers accounted for 36.28% of total sales in 2025, while the five largest suppliers accounted for 25.81% of total procurement. Customer concentration was higher than supplier concentration but remained moderate. Customer data came from the 2025 annual report, and some customers were disclosed anonymously, preventing complete verification of end-market distribution. Supplier data also follows the 2025 annual-report basis.

The company is in the upper part of the midstream but remains primarily a processing and manufacturing business. Its sizable titanium dioxide operations are affected by titanium concentrate, sulfuric acid, energy and industry selling prices, making margins vulnerable to cyclical fluctuations. Phosphate ore self-sufficiency and the “titanium dioxide ferrous sulfate by-product–iron phosphate” synergy provide some upstream and resource-utilization advantages. Future margin improvement will depend mainly on raw-material security and phosphate ore self-sufficiency, higher capacity utilization, product-mix optimization, cost control and by-product utilization, rather than on volume growth alone.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Second-quarter 2026 revenue and net profit are derived by subtracting first-quarter 2026 data from first-half 2026 data. They are not figures separately disclosed in the company’s quarterly financial statements. Net profit attributable to the parent excluding non-recurring items was RMB 364.07 million in the first half of 2026, up 65.20% year on year; basic EPS was RMB 0.1170, up 64.56%. Net profit attributable to the parent excluding non-recurring items was RMB 309.57 million in FY2025, down 29.19% year on year; basic EPS was RMB 0.0985, down 36.04%.

In 2025, the company grew revenue but experienced a significant decline in net profit attributable to the parent, with margins under pressure. In the first half of 2026, both revenue and profit returned to growth, and the growth rate of net profit attributable to the parent excluding non-recurring items exceeded that of reported net profit, indicating some operating support for the improvement. Net cash flow from operating activities during the same period was RMB 355.37 million, down 23.57% year on year, so the conversion of profit growth into cash flow requires attention. As of June 30, 2026, total assets were RMB 21.41993 billion, up 9.96% from the end of 2025; net assets attributable to shareholders of the listed company were RMB 13.22838 billion, up 10.07% from the end of 2025.

3.2 Earnings Forecasts

As of September 12, 2026, the earnings-forecast page on 10jqka F10 showed no institutional earnings forecasts for 2026 or 2027. The page did not provide currently verifiable consensus expectations for 2026–2028 revenue, net profit attributable to the parent or EPS. Accordingly, a single website’s model estimate or a self-derived calculation should not be treated as an institutional consensus forecast.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was RMB 4.17, down 2.34% on the day. The 52-week price range was approximately RMB 4.13–6.19. Based on total shares outstanding of 3,774,292,438 disclosed in the 2026 interim report, total market capitalization was approximately RMB 15.74 billion. Based on 2025 net profit attributable to the parent of RMB 356.82 million, first-half 2026 net profit attributable to the parent of RMB 419.75 million and first-half 2025 net profit attributable to the parent of RMB 259.21 million, the latest twelve-month net profit attributable to the parent was approximately RMB 517.36 million, implying an approximate static P/E of 30.4x. First-half 2026 EPS was approximately RMB 0.111. Based on net assets attributable to shareholders of the listed company of RMB 13.22838 billion as of June 30, 2026 and the latest share count, book value per share was approximately RMB 3.50, implying a P/B ratio of approximately 1.19x. The above P/E and P/B figures are self-calculated based on publicly disclosed financial statements and the closing price; they are not valuation metrics directly disclosed by the exchange or the company. As of September 10, 2026, Lixinger reported a P/E excluding non-recurring items of 31.42x and a historical percentile of approximately 29.89%. Its 20th, 50th and 80th percentiles were approximately 29.49x, 38.08x and 48.54x, respectively. On this basis, the current P/E is below the historical median area of approximately 38x but above the historical low-percentile level of approximately 29.5x, placing valuation around the lower-to-middle part of its historical range. The 10jqka page showed a dynamic P/E of approximately 19.36x and first-half 2026 EPS of approximately RMB 0.12, but this dynamic P/E differs materially from the approximately 30x P/E calculated using TTM net profit attributable to the parent. The difference may arise from annualized first-half profit, profit excluding non-recurring items or another dynamic calculation, and the figures should not be compared directly. As of September 12, 2026, no research reports issued in the preceding six months carried Buy, Accumulate, Neutral, Reduce or Sell ratings. No recent valid target price or latest rating issued by a major broker and cross-verified through multiple sources was identified. Due to the lack of publicly verifiable institutional consensus earnings forecasts for 2026–2028, consensus P/E or PEG cannot be used for reliable valuation. Whether valuation can improve will depend mainly on the price cycles of titanium dioxide, yellow phosphorus and iron phosphate, the pace of volume growth in the new energy materials business, and whether profit growth can continue in the second half of 2026.

4. Recent News and Announcements

4.1 2026 Interim Report: Net Profit Attributable to the Parent Up 61.93% Year on Year

The company disclosed its 2026 interim report on August 5, 2026. First-half operating revenue was RMB 4.55734 billion, up 20.89% year on year; net profit attributable to shareholders of the listed company was RMB 419.75 million, up 61.93%; net profit excluding non-recurring items was approximately RMB 363.5 million, up 65.20%; net cash flow from operating activities was approximately RMB 355 million, down 23.57%; and basic EPS was approximately RMB 0.117. Growth was mainly related to the recovery in prices across the titanium dioxide, yellow phosphorus and iron phosphate industries, as well as synergies, scale effects and cost advantages among the titanium chemicals, phosphorus chemicals and new energy materials businesses.

4.2 2026 Interim Earnings Guidance

On July 15, 2026, the company disclosed its 2026 interim earnings guidance. It expects first-half 2026 net profit attributable to shareholders of the listed company to be RMB 394 million–466.59 million, representing year-on-year growth of 52%–80%; net profit excluding non-recurring items is expected to be RMB 341.59 million–396.69 million, up 55%–80%; and basic EPS is expected to be RMB 0.1099–0.1301. The guidance figures had not been audited by an accounting firm and represented preliminary estimates by the company’s finance department.

4.3 Sixth Employee Stock Ownership Plan Completed Non-Trading Transfer

The company’s sixth employee stock ownership plan acquired 188,000,000 shares through a non-trading transfer, representing approximately 4.9387% of total shares outstanding. Total subscription funds were RMB 864.8 million, and the transfer price was RMB 4.60 per share. Participants included non-independent directors, senior management and other employees, with no more than 200 participants. The shares came from the company’s special share-repurchase account. After completion of the transfer, 32,379,745 shares remained in the repurchase account.

4.4 Existing Share Repurchase Completed; Remaining Shares in the Repurchase Account Not Eligible for Dividends

The company’s 2025 share-repurchase plan was completed on January 23, 2026. A total of 68,061,950 shares were repurchased, representing 1.7880% of total shares outstanding. The highest and lowest transaction prices were RMB 5.09 and RMB 4.12 per share, respectively, and the total transaction amount was approximately RMB 300.00 million, excluding transaction fees. As of the equity-distribution implementation announcement on August 11, 2026, 32,379,745 shares remained in the repurchase account and were not eligible for profit distribution.

4.5 2026 Interim Cash Dividend Implemented

Based on 3,774,292,438 shares outstanding after deducting repurchased shares, the company distributed a cash dividend of RMB 0.20 per 10 shares. Total cash dividends amounted to RMB 75,485,848.76, representing 17.98% of first-half 2026 net profit attributable to shareholders of the listed company. This was part of the employee stock ownership arrangement involving previously repurchased shares and the subsequent dividend implementation, rather than a new share-repurchase plan.

4.6 Proposed 600,000-Tonne-Per-Year Iron Phosphate Project

On August 12, 2026, the company disclosed its intention to construct a 600,000-tonne-per-year iron phosphate project through its wholly owned subsidiary Gansu Dongfang Titanium Industry Co., Ltd. Phase I will include a 400,000-tonne-per-year facility and Phase II a 200,000-tonne-per-year facility. Total investment for both phases is expected to be RMB 5.4618551 billion, funded through internal resources and self-raised funds, among other sources. Phase I is expected to be completed and commissioned within 18 months of construction commencement, while Phase II will be decided prudently based on the performance of Phase I and market conditions. The company highlighted uncertainty regarding the investment amount, filing, environmental approvals, financing and construction schedule. The transaction does not constitute a related-party transaction or a material asset restructuring.

4.7 Proposed 400,000-Tonne-Per-Year Titanium Dioxide and 1.4-Million-Tonne-Per-Year Heptahydrate Ferrous Sulfate Project

The company plans to inject RMB 260 million into its controlled subsidiary Guizhou Zhonghe Phosphorus Chemical Co., Ltd. and construct a 400,000-tonne-per-year titanium dioxide and 1.4-million-tonne-per-year heptahydrate ferrous sulfate project. Total investment is expected to be RMB 5.5383257 billion, with a construction period of no more than 36 months, excluding site-leveling work. The total capital increase will be RMB 400 million, of which the company will contribute RMB 260 million and Guizhou Phosphate Wanheng New Energy Co., Ltd. will contribute RMB 140 million. The ownership percentages will remain unchanged after the capital increase. The company owns 65% of Guizhou Zhonghe Phosphorus Chemical, while Guizhou Phosphate Wanheng New Energy owns 35%. The project does not constitute a related-party transaction or a material asset restructuring. The actual investment amount, approvals, financing arrangements and construction schedule remain uncertain.

4.8 Extension of Employee Stock Ownership Plan Terms

The 2026 interim report disclosed that the original term of the 2020 employee stock ownership plan, which was scheduled to expire on August 16, 2026, had been extended to August 16, 2027. The original term of the fifth employee stock ownership plan, which was scheduled to expire on September 29, 2026, had been extended to September 29, 2027.

4.9 Company Name Changed to Titan Energy Chemical

The company changed its name from “CNNC HUA YUAN Titanium Dioxide Co., Ltd.” to “Titan Energy Chemical Co., Ltd.” The security code remains 002145 and the listing venue remains the Shenzhen Stock Exchange. The name change reflects the company’s strategic adjustment toward coordinated development of titanium chemicals, phosphorus chemicals and new energy materials; it does not represent a change in the listed-company entity.

4.10 No New Material Regulatory or M&A Announcement Identified as of September 12, 2026

As of September 12, 2026, no material company announcement newly disclosed in September 2026 was identified. No new regulatory letter, inquiry letter, disciplinary action, company-level regulatory penalty, material share repurchase, change in holdings by the controlling shareholder or material asset restructuring announcement issued between July and September 2026 was identified either. The CSRC administrative penalty reproduced by some media outlets in late August 2026 was a historical penalty imposed in 2024, rather than a new administrative penalty imposed on Titan Energy Chemical in 2026. The project investment, project-company capital increase and equity arrangements disclosed by the company in August 2026 were explicitly stated not to constitute a material asset restructuring.

5. Share Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, 002145 closed at RMB 4.17, close to the intraday low of RMB 4.13 and the 52-week low shown by some market-data sources. From September 1 to September 11, the share price fell approximately 5.0% cumulatively. The close was below the MA5, MA10 and MA20; MACD was below the zero axis with DIF below DEA, indicating an overall weak technical picture. RSI6 of approximately 33.9–34 indicated that the stock was approaching the lower boundary of the weak range but had not formed a clear bullish divergence. The estimated lower Bollinger Band was approximately RMB 4.19, and the latest close was slightly below it. Whether the stock can find support around RMB 4.13–4.17 is the key short-term focus. Trading volume rose to approximately 47.11 million shares on September 11, with trading value of approximately RMB 196 million, but the move was downward and institutional fund flows were negative, making the pattern closer to a high-volume decline than a high-volume advance.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, recent historical prices and technical indicators. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Sideways consolidation (relatively high subjective weight, approximately 60%; this is a subjective judgment based on current technical conditions and fund flows, not a statistical probability): The observed price range would be approximately RMB 4.13–4.32. The trigger would be the stock holding support near RMB 4.13 while volume fails to expand continuously and the price cannot decisively break above RMB 4.27–4.32. If volume falls back to approximately 25–35 million shares and the price oscillates between RMB 4.17 and RMB 4.27, the technical picture would be closer to a weak range-bound consolidation, with no confirmation of a trend reversal.
• Weak downward move (medium subjective weight; this is a subjective judgment based on current technical conditions and fund flows, not a statistical probability): The observed price range would be approximately RMB 4.03–4.13. The trigger would be a high-volume break below RMB 4.13 accompanied by continued net institutional outflows, or simultaneous weakness in chemical raw materials, titanium dioxide and other related sectors. If trading value expands above approximately RMB 200 million while the close remains below RMB 4.13, the stock may retest the low near RMB 4.03 shown by some data sources. Because the RMB 4.03 low has not been consistently confirmed across multiple sources for the latest trading day, the downside scope remains uncertain.
• Stronger rebound (low subjective weight; this is a subjective judgment based on current technical conditions and fund flows, not a statistical probability): The observed price range would be approximately RMB 4.27–4.50. The trigger would be a move back above RMB 4.27–4.32 accompanied by trading value consistently above approximately RMB 200 million, clearly higher volume than recent normal levels and a shift in institutional funds from net outflows to sustained net inflows. A further break above RMB 4.39 could lead to a recovery toward RMB 4.45–4.50. A low-volume rebound that stalls near RMB 4.27 would be more consistent with a weak technical bounce.

③ Fund Flow and Liquidity Background

As of September 11, 2026, daily trading value was approximately RMB 196 million, turnover was approximately 1.24% and volume was approximately 47.11 million shares. Recent daily volume ranged from approximately 26.56 million to 47.11 million shares, while the normal recent volume described in the minutes was approximately 26–39 million shares. On most trading days in late August, turnover was approximately 0.8%–1.0%, rising to approximately 1.2%–1.5% during periods of greater volatility in mid-August. As of June 30, 2026, the ten largest free-float shareholders collectively held approximately 1.94 billion shares, or approximately 50.97% of free-float shares. The largest shareholder, Wang Zelong, held approximately 1.295 billion shares, or approximately 34.01% of total shares outstanding. Institutional holdings totaled approximately 602 million shares, or approximately 15.82% of free-float shares; funds accounted for approximately 1.58% of free-float shares. Institutions or institutional channels visible among the ten largest free-float shareholders included the Central Enterprise Rural Industry Investment Fund, Hong Kong Securities Clearing Company Limited and the Penghua CSI Subdivided Chemical Industry Theme ETF. The concentration is mainly attributable to the controlling shareholder, the employee stock ownership plan and certain industrial or capital institutions, while the proportion held by public funds is relatively limited. Shareholder data are as of June 30, 2026, more than two months before the September 11 close, and the holdings structure may have changed during this period. The data should therefore be viewed as medium-term ownership background rather than a substitute for the latest fund-flow data. With turnover of approximately 1.24% and recent trading values at the stated levels, the stock is not an extremely illiquid micro-cap, but short-term participation is average. The high-volume decline indicates that higher trading activity has not yet translated into an upward breakout.

If daily trading value reaches or exceeds approximately RMB 200 million for several consecutive sessions during the coming week, while the closing price moves above RMB 4.32 and institutional funds are no longer continuously net outflowing, this could be viewed as a verifiable sign of improved short-term buying support. If trading value expands above approximately RMB 200 million but the price breaks below RMB 4.13, the move would instead suggest the release of downside pressure rather than fund inflows.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: Monitor whether the RMB 4.13–4.17 area can stabilize and attract buying support.
• Observation framework, not a trading instruction: Monitor whether the share price can recover the RMB 4.27–4.32 moving-average resistance band.
• Observation framework, not a trading instruction: If RMB 4.32 is broken, observe whether trading value remains above approximately RMB 200 million rather than rising only in a one-day spike.
• Observation framework, not a trading instruction: Assess the nature of higher volume together with institutional fund flows; rising prices with net inflows would lean toward confirmation of a recovery, while falling prices with net outflows would lean toward the release of risk.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, broader market conditions and other factors. Technical indicators have inherent lags and limitations. This analysis does not guarantee actual future performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

China’s titanium dioxide industry exhibits a “one dominant player plus several strong competitors” structure, with overall domestic capacity relatively ample and price competition significant. Competition is shifting from simple capacity expansion toward scale, resources, process technology, environmental protection, overseas channels and comprehensive by-product utilization. At the end of 2025, Titan Energy Chemical had designed titanium dioxide capacity of approximately 700,000 tonnes per year, placing it among the large second-tier domestic producers. Titanium dioxide revenue still accounted for 75.57% of the company’s operating revenue.

6.2 Competitive Landscape

• Lomon Billions is the undisputed industry leader. At the end of 2025, its designed capacity was approximately 1.51 million tonnes per year. It has businesses spanning titanium ore, sulfuric-acid-process and chloride-process titanium dioxide, sponge titanium and new energy materials, with leading scale, resource and process integration.
• Titan Energy Chemical mainly uses the sulfuric-acid process and has advantages in scale, brand and export channels, but it still relies primarily on externally purchased titanium concentrate and has weaker resource self-sufficiency than Lomon Billions.
• Pangang Vanadium Titanium benefits from vanadium-titanium magnetite resources in the Panzhihua–Xichang region and has advantages in the comprehensive utilization of titanium concentrate, titanium dioxide, titanium slag and vanadium products.
• Lubei Chemical, GPRO Titanium Industry, Huiyun Titanium and Annada are medium-sized titanium dioxide producers, mainly using the sulfuric-acid process, and lag Lomon Billions and Titan Energy Chemical in scale and resource security.
• Key international competitors include Chemours, Tronox, Kronos and Venator, which have advantages in chloride-process technology, high-end products and global channels.
• Key industry pressures include weaker architectural-coating demand due to the real-estate adjustment, volatility in titanium concentrate and energy prices, competition from high-end chloride-process products, tighter environmental and energy-consumption requirements, and anti-dumping measures, trade barriers and international competition in export markets.

6.3 Major Competitors

Titan Energy Chemical’s relative advantages include approximately 700,000 tonnes per year of titanium dioxide capacity, resource synergies in Gansu and Guizhou, extension into the phosphate ore–yellow phosphorus value chain, and the resource coupling of titanium dioxide ferrous sulfate by-product into iron phosphate. Its relative weaknesses are continued reliance on externally purchased titanium concentrate, the absence of large-scale chloride-process capacity and substantial exposure to price-cycle effects due to ample titanium dioxide supply. Capacity data among comparable companies differ in terms of designed capacity, effective capacity and actual output. Some data come from publicly available 2024–2025 annual reports, rating reports and industry materials and should not be used to directly derive actual output or market share.

7. Risk Factors

• Titanium dioxide accounts for a high proportion of revenue, reaching 75.57% in 2025. Overall industry capacity remains relatively ample and products are highly commoditized. If price competition continues, volume growth may not offset declines in average selling prices and gross margin.
• The company still relies primarily on externally purchased titanium concentrate. In 2025, raw-material costs accounted for 65.96% of relevant titanium dioxide operating costs and energy costs for 16.50%. If titanium concentrate, sulfuric acid, electricity or steam prices rise without corresponding product-price pass-through, profitability could remain under pressure.
• Phosphorus chemicals are also cyclical. The gross margin of phosphorus chemicals declined 11.41 percentage points from 2024 in 2025. Yellow phosphorus is also affected by the costs of phosphate ore, coke, silica and substantial electricity. Falling prices or rising costs could weaken the segment’s contribution to overall profit.
• The iron phosphate business remains in its early volume-ramp phase, with revenue of only RMB 360 million in 2025. The proposed 600,000-tonne-per-year iron phosphate project has total investment of approximately RMB 5.462 billion and faces risks related to filing, environmental approvals, financing, construction progress, commissioning ramp-up and weaker-than-expected market absorption.
• The proposed 400,000-tonne-per-year titanium dioxide and 1.4-million-tonne-per-year heptahydrate ferrous sulfate project is expected to require total investment of approximately RMB 5.538 billion and have a construction period of no more than 36 months. Delays in approvals, financing or construction could postpone capacity release and increase capital usage. Concentrated commissioning of new capacity could also intensify supply pressure for the relevant products.
• The company’s working-capital usage has increased. At the end of 2025, accounts receivable were RMB 1.151 billion, or 14.79% of annual operating revenue, while inventory was RMB 1.762 billion. Accounts receivable were approximately 3.23x annual net profit attributable to the parent. Net cash flow from operating activities fell 23.57% year on year in the first half of 2026, warranting attention to collections, inventory and profit realization.
• The five largest customers accounted for 36.28% of total sales, while the largest customer accounted for 12.16%. Some customers were disclosed anonymously, making the customer structure and end-market distribution impossible to fully verify. Given the strong bargaining power of titanium dioxide customers, the company may face pressure from price reductions, longer payment terms or increased rebates.
• As of September 11, 2026, the share price was RMB 4.17, below several short-term moving averages, with weak MACD and net institutional fund outflows. If support near RMB 4.13 is broken on higher volume, the technical picture could weaken further. These technical indicators are approximate calculations based on historical market data and cannot represent future price performance.

8. Conclusion and Outlook

The company’s current core growth drivers are improvement in the prices of titanium dioxide, yellow phosphorus and iron phosphate, together with the release of existing capacity, value-chain synergies and by-product utilization. In the first half of 2026, the growth rate of net profit excluding non-recurring items exceeded that of net profit attributable to the parent, indicating some operating support for the earnings recovery. If titanium dioxide and phosphorus-chemical prices remain favorable, capacity utilization improves and the iron phosphate business gradually ramps up, the company’s profitability may continue to recover.

Over the medium to long term, the company plans to expand iron phosphate and titanium dioxide-related capacity, potentially strengthening its “sulfur–phosphorus–iron–titanium–lithium” value-chain footprint. However, the projects are large in scale, and capital expenditure, financing arrangements, construction schedules and absorption of new capacity will materially affect actual returns. Because titanium dioxide remains the main source of revenue, the company’s earnings sensitivity remains high to product prices and titanium concentrate, sulfuric acid and energy costs. New energy materials have not yet become the main source of profit.

Overall, the company’s fundamentals are in a phase where earnings recovery and capacity expansion are proceeding in parallel. However, the share price remains in a weak range in the short term, and current valuation lacks support from consensus expectations. Investors should focus on whether profit growth can convert into cash flow, whether titanium dioxide gross margin can improve, whether the iron phosphate projects can proceed as planned, and how the stock performs technically around the RMB 4.13 support level and the RMB 4.27–4.32 resistance range.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-04-29/1225225962.PDF
• Titan Energy Chemical Co., Ltd. 2025 Annual Report
• Titan Energy Chemical (002145)_Company Announcements_Titan Energy Chemical: 2025 Annual Report_Sina Finance
• [[Research Report]: CNNC Titanium Dioxide Institutional Research Notes](https://www.fxbaogao.com/detail/4249191?utm_source=openai)
• [2026 Outlook: Analysis of China’s Titanium Dioxide Industry Output, Imports and Exports, and Key Companies: First-Ever Output Decline Signals a Deep Adjustment Turning Point, While Divergence Between Domestic and Overseas Markets Reshapes Global Competition [Chart]_Zhiyan Consulting](https://www.chyxx.com/industry/1265853.html?utm_source=openai)
• Huiyun Titanium (300891)_Company Announcements_Huiyun Titanium: 2026 Issuer Credit Rating Report_Sina Finance
• [Positive

▪ The company’s raw-material supply is stable, and its products continue to maintain good competitiveness. The company’s production base is located in an area with sulfur pyrite reserves and grades that rank first in Asia](https://static.cninfo.com.cn/finalpage/2025-06-26/1223998355.PDF?utm_source=openai)

• Titan Energy Chemical (002145)_Company Announcements_Titan Energy Chemical: 2026 Interim Report_Sina Finance
• Titan Energy Chemical (002145)_Company Announcements_Titan Energy Chemical: 2025 Annual Report Summary_Sina Finance
• Titan Energy Chemical (002145)_Stock Quote_Stockstar
• Security Code: 002145  Security Name: Titan Energy Chemical  Announcement No.: 2026-025
• Titan Energy Chemical (002145) Earnings Forecast_F10_10jqka Financial Services
• Titan Energy Chemical (002145) - Stock Market Center - Sohu Securities
• Titan Energy Chemical (002145) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Titan Energy Chemical (002145) P/E|Valuation|Fundamentals - Lixinger
• Titan Energy Chemical (002145) Latest Developments_F10_10jqka Financial Services
• Titan Energy Chemical (002145)_Company Announcements_Titan Energy Chemical: 2026 Interim Report Summary_Sina Finance
• Titan Energy Chemical (002145) Announcements (All) - Lixinger
• Titan Energy Chemical: First-Half 2026 Net Profit Up 61.93%; Proposed Cash Dividend of RMB 0.2 per 10 Shares_Eastmoney
• https://static.cninfo.com.cn/finalpage/2026-06-30/1225394209.PDF
• https://disc.static.szse.cn/download/disc/disk03/finalpage/2026-08-11/76a78114-6e3e-470c-bee5-24eeb54f6039.PDF
• Titan Energy Chemical (002145) Stock Price, Quotes, News and Financial Data_Sina Finance
• https://disc.static.szse.cn/download/disc/disk03/finalpage/2026-08-12/8263c5ea-d795-4f71-824c-f9b1f67b0917.PDF
• https://static.cninfo.com.cn/finalpage/2026-08-12/1225469294.PDF
• CSRC Administrative Penalty Decision (Wang Zelong, Hong Haowei, CITIC CICC, CITIC Securities, Haitong Securities, Han Yuchen)_China Securities Regulatory Commission
• Titan Energy Chemical (002145) Latest Developments_F10_10jqka Financial Services
• Titan Energy Chemical (002145) Stock Price and News - Google Finance
• Titan Energy Chemical (002145) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Titan Energy Chemical (002145.SZ) Stock Quotes_Historical Data_Institutional Funds - Dabolang Data
• Titan Energy Chemical (002145.SZ) Stock Quotes_Historical Data_Institutional Funds - Dabolang Data
• Titan Energy Chemical Institutional Funds Net Outflow of RMB 37.71 Million on September 11; Nearly Flat with the Broader Market Over the Past Five Days - Economic Observer

This report was automatically researched, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; MA and Bollinger Bands are approximate calculations based on publicly available historical closing prices, while MACD and RSI are the latest available technical snapshots. Some indicators may not be synchronized with the September 11 close and may be subject to timeliness differences. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.