LB Group(SZ:002601) Huachuang Securities·2024-09-06 16:57Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 24.45 CNY per share, compared to the current price of 16.12 CNY [2]. Core Insights - The company achieved a revenue of 13.804 billion CNY in the first half of 2024, a year-on-year increase of 4.09%, and a net profit attributable to shareholders of 1.721 billion CNY, up 36.40% year-on-year. In Q2 alone, revenue was 6.510 billion CNY, a year-on-year increase of 3.59% but a quarter-on-quarter decrease of 10.75% [2]. - The production and sales of titanium dioxide continue to grow, with a significant increase in export growth. The company produced 649,600 tons of titanium dioxide in the first half of 2024, a year-on-year increase of 9.70%, with sales of 599,600 tons, a year-on-year increase of 3.70% [2]. - The company is expanding its production capacity, particularly in titanium ore, which is expected to enhance future growth. A strategic cooperation agreement was signed with Sichuan Resources Group to develop the Honggen South Mine, which has substantial reserves [2]. Financial Summary - The company forecasts net profits of 3.880 billion CNY, 4.603 billion CNY, and 5.455 billion CNY for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 20.3%, 18.6%, and 18.5% [3][9]. - The projected P/E ratios for 2024, 2025, and 2026 are 10x, 8x, and 7x respectively, with a target P/E of 15x for 2024 based on comparable company valuations [2][3].