Sichuan Anning Iron and Titanium (SZ:002978) KAIYUAN SECURITIES·2024-10-24 13:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a quarter-on-quarter improvement in Q3 performance, with a net profit of 2.44 billion yuan, reflecting a 17.42% increase compared to the previous quarter [3] - The company is optimistic about the sustained high prices of titanium concentrate and the recovery of iron concentrate profitability, alongside the steady progress of its titanium material project, which is expected to open up long-term growth opportunities [3] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 1.359 billion yuan, a year-on-year decrease of 1.26%, and a net profit attributable to shareholders of 683 million yuan, down 4.04% year-on-year [3] - In Q3 2024, the company recorded revenue of 514 million yuan, a year-on-year decline of 3.39% but a quarter-on-quarter increase of 28.34% [3] - The net profit for Q3 2024 was 244 million yuan, down 8.66% year-on-year but up 17.42% quarter-on-quarter [3] Price and Volume Analysis - The average market price for titanium concentrate in Q3 2024 was 2,379 yuan/ton, showing a slight decrease of 25 yuan/ton from Q2 [4] - The company's gross margin in Q3 2024 was 65.29%, a decrease of 4.04 percentage points from Q2, primarily due to the decline in the price of vanadium-titanium iron concentrate [4] Capital Increase and Project Progress - On October 20, the company announced the approval of a private placement to raise up to 1.704 billion yuan, with the net proceeds to be used for a project to produce 60,000 tons of energy-grade titanium (alloy) materials annually [4] - The company is actively extending its industrial chain and steadily advancing the titanium material project, which is expected to enhance long-term growth potential [4]