LB Group(SZ:002601) Huajin Securities·2024-09-09 03:20Investment Rating - The investment rating for Longbai Group is maintained at "Buy" [1][3]. Core Views - Longbai Group's performance shows steady growth, with a focus on deepening resource and industrial chain advantages. In the first half of 2024, the company achieved revenue of 13.804 billion yuan, a year-on-year increase of 4.09%, and a net profit attributable to shareholders of 1.721 billion yuan, up 36.40% year-on-year [1][3]. - The company is actively responding to challenges in the titanium dioxide market, with a focus on maintaining a balanced supply-demand situation and optimizing production efficiency [1][3]. - Longbai Group is committed to innovation and reform, enhancing production capacity utilization rates and market share, which contributed to steady growth in performance during the first half of 2024 [1][3]. Summary by Sections Financial Performance - In 2024H1, Longbai Group's titanium dioxide revenue reached 9.385 billion yuan, a year-on-year increase of 6.78%, with a gross margin of 33.51%, up 7.67 percentage points. The production volume was 649,600 tons, a year-on-year increase of 9.70% [1][3]. - The company produced 154.82 million tons of iron concentrate in 2024H1, with a net profit margin of 36.04% [3]. - Revenue from new energy materials was 414 million yuan, down 25.48% year-on-year, while zirconium products revenue was 433 million yuan, down 17.81% year-on-year [1][3]. Market Dynamics - The titanium dioxide market in China experienced a rebound in prices due to increased stocking demand, although competition pressure remains high as the market enters a seasonal downturn [1][3]. - The export volume of titanium dioxide from China reached 972,600 tons in 2024H1, a year-on-year increase of 16.31%, indicating competitive strength in the international market despite challenges such as potential tariffs from the EU [1][3]. Strategic Initiatives - Longbai Group is enhancing its industrial chain in scandium and vanadium materials, with plans to invest 1.08 billion yuan in a new materials industrial park [2][3]. - The company is focused on integrating its resource advantages and expanding its production capabilities, aiming to achieve an annual production of 7.6 million tons of iron concentrate and 2.48 million tons of titanium concentrate by the end of the 14th Five-Year Plan [3].