LB Group(002601) 国泰君安·2024-06-23 10:01Investment Rating - Maintains an "Overweight" rating for the company [2][4] Core Views - The titanium dioxide industry saw a year-on-year increase in exports in May, with the company benefiting from significant resource and cost advantages [2] - The company's titanium dioxide capacity is 1.51 million tons/year, ranking first globally, and it has over 1 million tons/year of titanium concentrate capacity [2] - The company is progressing with the Fengyuan technical renovation project and plans to invest in a scandium-vanadium new materials industrial park [2] Financial Summary - Revenue for 2022A was 24,155 million yuan, with a growth rate of 17.2% [2] - Net profit attributable to the parent company for 2022A was 3,419 million yuan, a decrease of 26.9% [2] - EPS for 2022A was 1.43 yuan, with a ROE of 16.4% [2] - Revenue is expected to grow to 36,079 million yuan by 2026E, with a net profit of 5,661 million yuan [2] Export and Industry Performance - In May 2024, titanium dioxide exports were 149,300 tons, a year-on-year increase of 3.11%, accounting for 36.92% of national production [2] - The average export price in May 2024 was 2,299.82 USD/ton, a year-on-year increase of 1.21% [2] - The industry's operating rate in May was 84.13%, with a production volume of 404,400 tons, a year-on-year increase of 23.51% [2] Market and Valuation - The target price is adjusted to 23.68 yuan, based on a 13.90x PE valuation for 2024 [2] - The current price is 18.65 yuan, with a 52-week price range of 15.60-22.98 yuan [4] - The company's total market capitalization is 44,504 million yuan, with a P/E ratio of 13.02 for 2022A [5] Growth Projects - The company is advancing the Fengyuan technical renovation project [2] - Plans to invest in a scandium-vanadium new materials industrial park, including a 2,500 tons/year high-purity vanadium pentoxide project and a 20,000 cubic meters/year vanadium electrolyte project [2] Financial Ratios - ROE is expected to increase from 16.4% in 2022A to 19.6% by 2026E [2] - The net debt ratio is 65.04%, with a P/B ratio of 1.8 [5] - The dividend yield is expected to increase from 6.4% in 2022A to 7.0% by 2026E [7]