LB Group(002601)2024-09-02 11:30Investment Rating - The report maintains a "Strong Buy" rating for Longbai Group [2] Core Views - Longbai Group's core business, particularly in titanium dioxide and sponge titanium, has shown good growth, contributing to the company's overall performance [2] - The company is actively expanding its upstream mineral resources to strengthen its integrated supply chain advantages [2] - The report adjusts profit forecasts for 2024-2026, predicting net profits of 36.15 billion, 42.25 billion, and 48.77 billion respectively, with corresponding EPS of 1.52, 1.77, and 2.05 [2] Financial Performance - In the first half of 2024, Longbai Group achieved revenue of 137.91 billion, a year-on-year increase of 4.10%, and a net profit of 17.21 billion, up 36.40% year-on-year [2] - The titanium dioxide business revenue grew by 6.78% to 93.85 billion, with sales volume increasing by 3.7% to 599,600 tons [2] - Sponge titanium revenue increased by 21.47% to 13.19 billion, with sales volume rising by 60.32% to 30,800 tons [2] Production Capacity and Resource Development - Longbai Group is a leading player in the titanium dioxide industry, with a production capacity of 1.51 million tons for titanium dioxide and 80,000 tons for sponge titanium, ranking among the top globally [2][3] - The company is developing joint mining projects to significantly enhance its controlled resources of vanadium-titanium magnetite, laying a solid foundation for future raw material supply [2] Strategic Partnerships - Longbai Group has signed a strategic cooperation framework agreement with Sichuan Natural Resources Group to collaborate in various fields, including mining, vanadium-titanium industry, and titanium concentrate trade [2]