龙佰集团：内外压力趋紧，公司逆势提升

Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. Core Views - The company reported a revenue of 20.88 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 3.0%. The net profit attributable to shareholders was 2.56 billion RMB, up 19.7% year-on-year, and the net profit after deducting non-recurring gains and losses was 2.53 billion RMB, an increase of 22.9% year-on-year [3][4]. - In Q3 2024, the company achieved a revenue of 7.08 billion RMB, which is a 0.8% year-on-year increase and an 8.8% quarter-on-quarter increase. The net profit attributable to shareholders was 840 million RMB, down 4.3% year-on-year but up 9.3% quarter-on-quarter [3][4]. - The company plans to distribute a cash dividend of 3 RMB per 10 shares to all shareholders, totaling 710 million RMB [3]. Summary by Sections Financial Performance - The company’s gross margin for the first three quarters of 2024 was 26.9%, an increase of 0.5 percentage points year-on-year. The net profit margin was 12.2%, up 1.3 percentage points year-on-year, while the expense ratio decreased by 1.1 percentage points to 11.0% [4]. - The company has significant technical advantages in areas such as improving titanium ore quality, deep processing, new product development, and clean production [4]. Market Conditions - Despite weak domestic and international demand for titanium dioxide and excess supply pressure, the company managed to achieve a quarter-on-quarter revenue increase of 8.8% in Q3 2024 by leveraging its titanium ore resource advantages and enhancing marketing efforts [3][4]. - The company anticipates increased operational pressures in Q4 2024 due to tariff impacts and new domestic capacity releases, but the titanium ore supply remains tight, providing a stable support for the company's fundamentals [4]. Product Development - The company has produced six new or upgraded grades of titanium dioxide in the first half of the year, with five grades already recognized by customers. It is also developing eight new or upgraded grades [5]. - The company is positioned as a global leader in integrated titanium dioxide production and is expanding into the renewable energy sector, which is expected to open new growth avenues [5]. Future Profit Projections - The company’s projected net profits for 2024, 2025, and 2026 are 3.14 billion RMB, 3.78 billion RMB, and 4.63 billion RMB, respectively, maintaining a "Buy" rating [5].