LB Group(002601) 华创证券·2024-11-10 13:52Investment Rating - The report maintains a "Strong Buy" rating for Longbai Group (002601) with a target price of 23.85 CNY per share [1]. Core Views - Longbai Group's revenue for the first three quarters of 2024 reached 20.885 billion CNY, a year-on-year increase of 2.97%, while the net profit attributable to shareholders was 2.564 billion CNY, up 19.68% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 7.081 billion CNY, reflecting a year-on-year growth of 0.85% and a quarter-on-quarter increase of 8.77% [1]. - The report highlights strong export orders for titanium dioxide, despite a slight decline in prices, indicating robust demand in the market [1]. - The company is expanding its production capacity in the titanium ore segment, which is expected to contribute to future growth [1]. Financial Summary - For 2024-2026, the forecasted net profit attributable to shareholders is 3.261 billion CNY, 3.790 billion CNY, and 4.566 billion CNY, representing year-on-year growth rates of 1.1%, 16.2%, and 20.5% respectively [2][5]. - The projected P/E ratios for 2024, 2025, and 2026 are 14x, 12x, and 10x respectively, with a target price based on a historical valuation of 15x P/E for 2025 [1][5]. - The company’s total revenue is expected to grow from 26.794 billion CNY in 2023 to 34.939 billion CNY in 2026, with a compound annual growth rate of approximately 9% [2][5]. Market Position - Longbai Group is positioned as a global leader in titanium dioxide and sponge titanium production, with a strong cost advantage compared to overseas competitors [1]. - The company has a significant market share and is expected to maintain its pricing power due to its concentrated titanium ore resources [1].