LB Group(SZ:002601) Haitong Securities·2024-09-02 09:46Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company achieved a revenue of 13.792 billion yuan in the first half of 2024, representing a year-on-year growth of 4.10%. The total profit reached 2.114 billion yuan, up 34.96%, and the net profit attributable to shareholders was 1.721 billion yuan, increasing by 36.40% [5][6]. - The company sold 599,600 tons of titanium dioxide in the first half of 2024, a growth of 3.70% year-on-year, with domestic sales accounting for 41.39% and international sales for 58.61% [5]. - The company continues to strengthen its integrated supply chain layout, with titanium dioxide production capacity of 1.51 million tons per year and sponge titanium capacity of 80,000 tons per year, ranking among the top globally [5][6]. Financial Performance Summary - The company’s revenue for 2023 is projected at 26.794 billion yuan, with a year-on-year growth of 10.9%. The net profit is expected to be 3.226 billion yuan, reflecting a decline of 5.6% [7][9]. - The earnings per share (EPS) for 2024 is estimated at 1.59 yuan, with a projected growth in net profit to 3.795 billion yuan in 2024, representing a growth of 17.6% [7][9]. - The gross margin is expected to improve from 26.7% in 2023 to 28.0% in 2024, indicating a positive trend in profitability [9][10]. Strategic Developments - The company signed a strategic cooperation framework agreement with Sichuan Resources Group, which includes collaboration in mining rights and resource development [6]. - The company has made significant investments in expanding its production lines, including a 400,000-ton chloride titanium dioxide production line and various green manufacturing projects [5][6].