# LB Group (002601.SHE)

Canonical: https://gigainvestors.com/s/002601.SHE

Analysis as of: 2026-10-16T07:37:33.119Z. Financial observations: FY2008–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 13.93 per share; close as of 2026-10-15.

Estimated value: low CNY 21.08 per share, central CNY 28.34 per share, high CNY 32.93 per share. Buy at or below the central value CNY 28.34 per share. Valuation as of 2026-10-16T07:37:33.119Z; scenarios are not confidence intervals.

Expected annual return: 17.8% at the stated quote. About 17.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.30×

- FY2018: 0.26×

- FY2019: 0.27×

- FY2020: 0.20×

- FY2021: 0.27×

- FY2022: 0.17×

- FY2023: 0.15×

- FY2024: 0.11×

- FY2025: 0.09×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 21.4%

- ROIC, second-lowest year: 6.7%

- Typical minus recent gross margin: 11.6 pp

- Typical gross margin (annual median): 32.7%

- Recent gross margin (lower of latest and 3-year median): 21.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.0%

- ROIC including acquisitions, ten-year median: 14.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.1%

- FY2017: 28.9%

- FY2018: 25.1%

- FY2019: 27.3%

- FY2020: 29.5%

- FY2021: 39.4%

- FY2022: 17.7%

- FY2023: 11.5%

- FY2024: 8.3%

- FY2025: 6.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 17B

- Net income, five-year total: CNY 15B

- Return on incremental invested capital: 235.7%

- Working capital / revenue, annual change: -3.6 pp

- Working capital / revenue, change between three-year averages: -22.2 pp

- Working capital / revenue, final three-year average: 4.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.65×

- FY2025: 2.08×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 25.1% vs 8.3%

- Per-share earnings: 0.73 to 0.91 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.0%

- Ordinary dilution, 5-year annual growth: 3.1%

- Market cap gain: CNY 39B

- Cumulative retained earnings: CNY 4.4B

- Diluted shares, 10-year annual growth: 13.0%

- Diluted shares, 5-year annual growth: 3.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.8%

- Per-share value change: CNY 0.18

- Per-share value, starting three-year median: CNY 0.73

- Per-share value, ending three-year median: CNY 0.91

- Buybacks concentrated in cheaper years (correlation): 0.64

- Average buyback yield: 0.7%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 8.4B

- Cumulative net income, 10 years: CNY 25B

- ROIC, first three-year median: 25.1%

- ROIC, last three-year median: 8.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.73

- FY2017: CNY 1.27

- FY2018: CNY 1.12

- FY2019: CNY 1.30

- FY2020: CNY 1.12

- FY2021: CNY 1.98

- FY2022: CNY 1.44

- FY2023: CNY 1.35

- FY2024: CNY 0.91

- FY2025: CNY 0.52

### accounting: pass

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 0.69×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.36×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.1%

- FY2017: 0.6%

- FY2018: 1.2%

- FY2019: 2.3%

- FY2020: -2.4%

- FY2021: 0.8%

- FY2022: 0.4%

- FY2023: -0.3%

- FY2024: -2.5%

- FY2025: -4.2%

## Holders

## Price story

Down 51% since Dec 2021 · sales -5.5%

Story as of 2026-10-16T10:00:09.206Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.3% a year for ten years

### Sales · FY2024–2025

sales -5.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.1B 

- FY2017: CNY 10B 

- FY2018: CNY 10B 

- FY2019: CNY 11B 

- FY2020: CNY 14B 

- FY2021: CNY 21B 

- FY2022: CNY 24B 

- FY2023: CNY 27B 

- FY2024: CNY 28B 

- FY2025: CNY 26B 

### Gross margin · FY2025

gross margin 21.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.3% 

- FY2017: 45.1% 

- FY2018: 41.2% 

- FY2019: 41.6% 

- FY2020: 35.3% 

- FY2021: 41.7% 

- FY2022: 30.1% 

- FY2023: 26.1% 

- FY2024: 24.4% 

- FY2025: 21.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are CNY 26 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2025: revenue 25987541896.57; grossProfit 5485680047.48; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002601.SHE: LB Group Co., Ltd. manufactures high-performance titanium dioxide pigments in China and internationally. It also offers sponge titanium, zirconium products, and lithium battery cathode, and anode materials. The company provides its products under the Snow Lotus and Xuelian brands. Its products are used in coatings, plastics, ink, and paper applications. The company was formerly known as Lomon Billions Group Co., Ltd. and changed its name to LB Group Co., Ltd. in July 2021. LB Group Co., Ltd. was founded in 1955 and is headquartered in Jiaozuo, China.

### Why customers stay

Margins ranged from 21.1% to 26.1% during 2023–25; it earns 21.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2023: grossProfit / revenue = 26.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2024: grossProfit / revenue = 24.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2025: grossProfit / revenue = 21.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); 10-year return on capital observations [[2016,0.051123172868468715],[2017,0.28900650001709094],[2018,0.25136557628872525],[2019,0.27274576352028984],[2020,0.295382664874929],[2021,0.39417799408858795],[2022,0.17735490051418545],[2023,0.11461951877129849],[2024,0.08278237757938217],[2025,0.06708748349223777]]; median 0.21436023840145535. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2016: growth capex 0; upkeep 193838873; owner earnings 666151237. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2017: growth capex 0; upkeep 164253667; owner earnings 3214815741. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2018: growth capex 0; upkeep 454774097; owner earnings 2726521700. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2019: growth capex 46241489; upkeep 956113834; owner earnings 2593975285. Growth capex / owner earnings = 0.0178264955982416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2020: growth capex 0; upkeep 955929236; owner earnings 2437841226. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2021: growth capex 1288017376; upkeep 1470067624; owner earnings 4672797686.534. Growth capex / owner earnings = 0.2756415882741488.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2022: growth capex 2990601080; upkeep 1687960400; owner earnings 3417191917.516119. Growth capex / owner earnings = 0.8751633365016858.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2023: growth capex 457393299.30999994; upkeep 2483303250; owner earnings 3225777966.8672795. Growth capex / owner earnings = 0.14179317485828025.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2024: growth capex 0; upkeep 1582633930; owner earnings 3572046263.6318088. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); FY2025: growth capex 0; upkeep 1903231022.09; owner earnings 2589402705.8700004. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); Dividend observations: [[2016,791882866],[2017,1551679811],[2018,2666476091],[2019,1937165438],[2020,2052341097],[2021,2903517000],[2022,3157219346],[2023,2777241660.25],[2024,2932723726],[2025,1965930447.55]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 47.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002601.SHE SharesStats.PercentInsiders = 47.22 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.3% yearly over ten years; actual growth was 21.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:33.119Z); Ten-year compound average after fade. Initial solved rate -0.07263296954469983. Price 13.93; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.15868807303130142 → FY2025 1.081894833306361. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 14.35 per share

- 2016-11: CNY 13.44 per share

- 2016-12: CNY 12.66 per share

- 2017-01: CNY 13.65 per share

- 2017-02: CNY 14.80 per share

- 2017-03: CNY 16.88 per share

- 2017-04: CNY 17.36 per share

- 2017-05: CNY 14.71 per share

- 2017-06: CNY 16.38 per share

- 2017-07: CNY 20.13 per share

- 2017-08: CNY 18.60 per share

- 2017-09: CNY 18.59 per share

- 2017-10: CNY 17.70 per share

- 2017-11: CNY 16.14 per share

- 2017-12: CNY 16.02 per share

- 2018-01: CNY 17.94 per share

- 2018-02: CNY 18.20 per share

- 2018-03: CNY 18.42 per share

- 2018-04: CNY 18.42 per share

- 2018-05: CNY 14.15 per share

- 2018-06: CNY 12.93 per share

- 2018-07: CNY 13.80 per share

- 2018-08: CNY 13.43 per share

- 2018-09: CNY 13.75 per share

- 2018-10: CNY 12.87 per share

- 2018-11: CNY 12.66 per share

- 2018-12: CNY 12.30 per share

- 2019-01: CNY 12.11 per share

- 2019-02: CNY 14.17 per share

- 2019-03: CNY 16.12 per share

- 2019-04: CNY 15.67 per share

- 2019-05: CNY 15.45 per share

- 2019-06: CNY 14.83 per share

- 2019-07: CNY 14.01 per share

- 2019-08: CNY 12.85 per share

- 2019-09: CNY 12.69 per share

- 2019-10: CNY 12.19 per share

- 2019-11: CNY 13.00 per share

- 2019-12: CNY 15.39 per share

- 2020-01: CNY 16.18 per share

- 2020-02: CNY 15.62 per share

- 2020-03: CNY 14.91 per share

- 2020-04: CNY 16.67 per share

- 2020-05: CNY 15.62 per share

- 2020-06: CNY 18.50 per share

- 2020-07: CNY 23.62 per share

- 2020-08: CNY 23.58 per share

- 2020-09: CNY 23.30 per share

- 2020-10: CNY 24.74 per share

- 2020-11: CNY 31.70 per share

- 2020-12: CNY 30.77 per share

- 2021-01: CNY 39.75 per share

- 2021-02: CNY 40.38 per share

- 2021-03: CNY 28.58 per share

- 2021-04: CNY 33.85 per share

- 2021-05: CNY 33.98 per share

- 2021-06: CNY 34.58 per share

- 2021-07: CNY 29.83 per share

- 2021-08: CNY 37.50 per share

- 2021-09: CNY 28.71 per share

- 2021-10: CNY 28.39 per share

- 2021-11: CNY 27.96 per share

- 2021-12: CNY 28.59 per share

- 2022-01: CNY 24.19 per share

- 2022-02: CNY 26.45 per share

- 2022-03: CNY 23.13 per share

- 2022-04: CNY 18.30 per share

- 2022-05: CNY 18.99 per share

- 2022-06: CNY 20.05 per share

- 2022-07: CNY 20.34 per share

- 2022-08: CNY 17.58 per share

- 2022-09: CNY 15.75 per share

- 2022-10: CNY 15.37 per share

- 2022-11: CNY 17.88 per share

- 2022-12: CNY 18.92 per share

- 2023-01: CNY 20.84 per share

- 2023-02: CNY 21.91 per share

- 2023-03: CNY 20.24 per share

- 2023-04: CNY 17.32 per share

- 2023-05: CNY 15.69 per share

- 2023-06: CNY 16.50 per share

- 2023-07: CNY 19.00 per share

- 2023-08: CNY 18.13 per share

- 2023-09: CNY 18.37 per share

- 2023-10: CNY 18.63 per share

- 2023-11: CNY 17.26 per share

- 2023-12: CNY 17.13 per share

- 2024-01: CNY 16.09 per share

- 2024-02: CNY 18.78 per share

- 2024-03: CNY 18.94 per share

- 2024-04: CNY 21.00 per share

- 2024-05: CNY 20.93 per share

- 2024-06: CNY 18.57 per share

- 2024-07: CNY 17.25 per share

- 2024-08: CNY 16.30 per share

- 2024-09: CNY 20.77 per share

- 2024-10: CNY 18.84 per share

- 2024-11: CNY 17.82 per share

- 2024-12: CNY 17.67 per share

- 2025-01: CNY 18.14 per share

- 2025-02: CNY 17.61 per share

- 2025-03: CNY 17.80 per share

- 2025-04: CNY 16.54 per share

- 2025-05: CNY 16.53 per share

- 2025-06: CNY 16.21 per share

- 2025-07: CNY 17.05 per share

- 2025-08: CNY 18.59 per share

- 2025-09: CNY 19.46 per share

- 2025-10: CNY 18.41 per share

- 2025-11: CNY 18.36 per share

- 2025-12: CNY 19.58 per share

- 2026-01: CNY 22.16 per share

- 2026-02: CNY 23.35 per share

- 2026-03: CNY 17.41 per share

- 2026-04: CNY 16.91 per share

- 2026-05: CNY 14.30 per share

- 2026-06: CNY 16.48 per share

- 2026-07: CNY 16.38 per share

- 2026-08: CNY 16.21 per share

- 2026-09: CNY 14.71 per share

- 2026-10: CNY 14.35 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.27 per share, central CNY 4.56 per share, high CNY 4.95 per share

- FY2017: low CNY 3.85 per share, central CNY 4.18 per share, high CNY 4.63 per share

- FY2018: low CNY 12.30 per share, central CNY 17.13 per share, high CNY 19.94 per share

- FY2019: low CNY 16.24 per share, central CNY 18.21 per share, high CNY 20.82 per share

- FY2020: low CNY 20.83 per share, central CNY 23.20 per share, high CNY 26.34 per share

- FY2021: low CNY 25.40 per share, central CNY 28.39 per share, high CNY 32.38 per share

- FY2022: low CNY 28.58 per share, central CNY 32.05 per share, high CNY 36.68 per share

- FY2023: low CNY 28.99 per share, central CNY 40.26 per share, high CNY 46.83 per share

- FY2024: low CNY 25.43 per share, central CNY 34.96 per share, high CNY 40.51 per share

- FY2025: low CNY 21.49 per share, central CNY 28.43 per share, high CNY 32.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:43:11.268Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations