LB Group(SZ:002601) Guohai Securities·2024-08-31 07:30Investment Rating - The report maintains a "Buy" rating for the company [1][9][36] Core Insights - The company achieved record high production and sales of titanium dioxide in the first half of 2024, with a significant increase in net profit [4][6][9] - The average selling price of titanium dioxide rose by 4.03% year-on-year, contributing to the overall revenue growth [4][6] - The company is positioned as a global leader in the titanium dioxide market, with advanced production technologies and a strong market share [7][9] Financial Performance - In the first half of 2024, the company reported revenue of 137.92 billion yuan, a year-on-year increase of 4.10%, and a net profit of 17.21 billion yuan, up 36.40% [3][4] - The gross profit margin improved to 27.53%, reflecting a 2.43 percentage point increase year-on-year [3][4] - The company’s return on equity (ROE) reached 7.19%, an increase of 1.45 percentage points compared to the previous year [3][4] Segment Performance - Titanium dioxide products generated revenue of 93.85 billion yuan, a 6.78% increase year-on-year, with a gross margin of 33.51% [4][11] - Iron products saw a revenue decline of 17.54% year-on-year, while sponge titanium products increased by 21.47% [4][11] - The company produced 64.96 million tons of titanium dioxide in the first half of 2024, a 9.70% increase year-on-year [4][11] Price Trends - The average price of titanium dioxide in Q2 2024 was 16,166.29 yuan per ton, reflecting a 3.52% increase year-on-year [6][9] - The average price of titanium concentrate was 2,094.31 yuan per ton, up 3.75% year-on-year [6][9] Future Outlook - The company is expected to achieve revenues of 295 billion yuan in 2024, with net profits projected at 36 billion yuan, indicating strong growth potential [9][36] - The report highlights the company's competitive advantages in production technology and resource availability, supporting its growth trajectory [7][9]