LB Group(002601) 华鑫证券·2024-11-12 23:49Investment Rating - The report maintains a "Buy" investment rating for the company [6] Core Views - The company has shown a quarter-on-quarter improvement in net profit for Q3, with a focus on enhancing its titanium ore resources to solidify its cost advantage [2][5] - Despite a decline in domestic titanium dioxide prices, the overall export volume continues to grow, supporting the company's revenue [3] - The company has effectively controlled its expenses, leading to a significant increase in cash flow [4] Summary by Sections Financial Performance - For the first nine months of 2024, the company achieved total revenue of 20.885 billion yuan, a year-on-year increase of 2.97%, and a net profit attributable to shareholders of 2.564 billion yuan, up 19.68% year-on-year [2] - In Q3 alone, the company reported revenue of 7.081 billion yuan, a year-on-year increase of 0.85% and a quarter-on-quarter increase of 8.77%, with a net profit of 842 million yuan, down 4.29% year-on-year but up 9.33% quarter-on-quarter [2] Market Dynamics - The average price of titanium dioxide in Q3 was 15,407 yuan per ton, reflecting a 4.70% decrease quarter-on-quarter, while the export volume of titanium dioxide increased by 11.66% year-on-year [3] - The price of titanium concentrate remained stable, with the average price in Q3 at 2,227 yuan per ton, up 0.85% quarter-on-quarter [3] Cost Management - The company has successfully reduced its total expense ratio to 10.99%, down 1.07 percentage points year-on-year, indicating effective internal management [4] - The net cash flow from operating activities in Q3 was 2.592 billion yuan, a year-on-year increase of 13.58% [4] Resource Strategy - The company is actively increasing its titanium ore resource reserves, recently acquiring exploration rights for a new titanium mine, which is expected to enhance its self-sufficiency and reduce reliance on external markets [5] - This strategy is anticipated to support profit growth as the self-sufficiency rate of raw materials improves [5] Profit Forecast - The company is projected to achieve net profits of 3.8 billion yuan, 4.5 billion yuan, and 5.3 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 12.2, 10.3, and 8.8 [6]