LB Group(002601) 长城证券·2024-11-07 00:44Investment Rating - The report maintains a "Buy" rating for Longbai Group, indicating an expectation of stock price appreciation relative to the industry index by over 15% in the next six months [6][16]. Core Views - Longbai Group's performance has shown a quarter-on-quarter increase despite a decline in titanium dioxide and sponge titanium prices, attributed to sales growth and upstream titanium ore resource layout [2][6]. - The company is expected to expand its titanium ore resource reserves, providing a solid raw material guarantee for future production [4][6]. Financial Performance Summary - For the first three quarters of 2024, Longbai Group reported operating revenue of 20.866 billion yuan, a year-on-year increase of 2.98%, and a net profit attributable to shareholders of 2.564 billion yuan, up 19.68% year-on-year [1]. - The third quarter of 2024 saw operating revenue of 7.075 billion yuan, a year-on-year increase of 0.87% and a quarter-on-quarter increase of 8.78% [1]. - The company's net profit for the third quarter was 842 million yuan, down 4.29% year-on-year but up 9.33% quarter-on-quarter [1]. Revenue and Profit Forecast - Revenue projections for Longbai Group are 29.313 billion yuan for 2024, 32.316 billion yuan for 2025, and 36.853 billion yuan for 2026, with year-on-year growth rates of 9.5%, 10.2%, and 14.0% respectively [6][10]. - Net profit forecasts are 3.351 billion yuan for 2024, 3.995 billion yuan for 2025, and 4.809 billion yuan for 2026, with corresponding growth rates of 3.9%, 19.2%, and 20.4% [6][11]. Cost and Expense Analysis - Sales expenses decreased by 5.60% year-on-year, with a sales expense ratio of 1.84% [3]. - Financial expenses increased by 58.36% year-on-year, with a financial expense ratio of 1.44% [3]. - Research and development expenses decreased by 20.89% year-on-year, with a research expense ratio of 4.20% [3]. Cash Flow Overview - The net cash flow from operating activities for the first three quarters of 2024 was 2.592 billion yuan, up 13.61% year-on-year [3]. - The net cash flow from investing activities was -1.078 billion yuan, an increase of 44.39% year-on-year [3]. - The net cash flow from financing activities was -889 million yuan, a decrease of 338.01% year-on-year [3].