LB Group(SZ:002601) Guoxin Securities·2024-06-19 04:02Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][3]. Core Viewpoints - The company's share buyback plan demonstrates confidence in its future stable development and recognition of its value, aiming to establish a long-term incentive mechanism to attract and retain talent [2][4]. - The investment in the anti-vanadium new materials industrial park is expected to enhance the company's market competitiveness and profitability, aligning with national strategies for promoting new energy development and achieving carbon neutrality [2][7]. - The EU's anti-dumping investigation may negatively impact the company's market share in the EU, but its core competitiveness remains strong due to cost advantages and high self-sufficiency rates, allowing it to explore other markets and overseas capacity [2][10]. - The domestic market prices for titanium dioxide and titanium concentrate have shown an increase year-on-year, with the average price of titanium dioxide at approximately 16,353 RMB/ton, up 4% year-on-year [15]. Summary by Sections Share Buyback - On June 17, 2024, the company approved a share buyback plan using its own funds, with a total amount expected between 100 million to 200 million RMB, at a price not exceeding 32.10 RMB/share, targeting a buyback of 3.115 million to 6.231 million shares, representing 0.13% to 0.26% of the total share capital [2][4]. Investment in New Materials - The company plans to invest 1.08 billion RMB in the construction of an anti-vanadium new materials industrial park in Jiaozuo, which will include projects for high-purity vanadium pentoxide, vanadium electrolyte, aluminum balls, and new high-performance aluminum alloys [2][7]. Market Conditions - The EU's proposed tariffs of 39.7% on titanium dioxide may affect the company's sales in the EU, but the overall impact is expected to be limited as the company's exports to the EU account for less than 10% of its total titanium dioxide sales [10]. - The average price of titanium concentrate remains strong, providing a safeguard for the company's profitability despite recent price declines in titanium dioxide during the off-season [15]. Financial Forecast - The company is projected to maintain a solid position in the titanium dioxide industry, with net profit forecasts for 2024-2026 at 4.01 billion, 4.75 billion, and 4.88 billion RMB, respectively, corresponding to EPS of 1.68, 1.99, and 2.05 RMB [3][18].