Sichuan Anning Iron and Titanium (SZ:002978) Guohai Securities·2024-08-21 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][7][31] Core Views - The titanium concentrate market remains strong, with the company achieving a dividend payout ratio of 46% in the first half of 2024 [1][6] - The company reported a slight decline in net profit by 1.26% year-on-year, amounting to 438 million yuan, while revenue increased marginally by 0.07% to 846 million yuan [3][4] - The average price of titanium concentrate increased by 3.51% year-on-year to 2085 yuan/ton in the first half of 2024, indicating a stable pricing environment [2][4] Financial Performance Summary - In the first half of 2024, the company achieved a net profit of 438 million yuan, a decrease of 1.26% year-on-year, with a return on equity (ROE) of 7.08% [3][6] - The sales gross margin improved to 67.92%, up by 2.14 percentage points year-on-year, while the net profit margin decreased slightly to 51.85% [3][4] - The company’s cash flow from operating activities was 476 million yuan, down 2.08% year-on-year [2][19] Revenue and Profit Forecast - The company is projected to achieve revenues of 1.9 billion yuan, 2.11 billion yuan, and 2.92 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 958 million yuan, 1 billion yuan, and 1.215 billion yuan [7][31] - The price-to-earnings (P/E) ratios are expected to be 10.3, 9.9, and 8.1 for the same years, indicating a favorable valuation outlook [7][31] Dividend Policy - The company plans to distribute a cash dividend of 5.00 yuan per share, resulting in a total payout of 200 million yuan, reflecting a dividend payout ratio of 45.62% [6][31]