LB Group(002601) 东兴证券·2025-02-13 05:58Investment Rating - The report maintains a "Strong Buy" rating for Longbai Group [2][5]. Core Views - Longbai Group is a leading enterprise in the titanium dioxide industry, with a production capacity of 1.51 million tons of titanium dioxide and 80,000 tons of sponge titanium, both ranking first globally. The company utilizes both sulfate and chloride processes for titanium dioxide production, with its chloride process technology being internationally competitive while effectively reducing production costs [3]. - The company has a comprehensive integrated advantage in the titanium dioxide industry chain, controlling high-quality mineral resources and deep processing capabilities. It has multiple mining rights to ensure stable supply of titanium concentrate for production [3][4]. - The titanium dioxide industry is currently at a cyclical low in profitability, but there are expectations for marginal improvement. Demand is anticipated to recover due to ongoing macroeconomic policy support in China, which may lead to a rebound in the industry's long-term profitability [4]. Financial Forecasts - The company forecasts net profits of 3.615 billion, 4.225 billion, and 4.877 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.52, 1.77, and 2.05 yuan. The current stock price corresponds to P/E ratios of 12, 10, and 9 times for the same years [5][6]. - Revenue is projected to grow from 26.794 billion yuan in 2023 to 37.138 billion yuan in 2026, with growth rates of 10.92%, 10.86%, 11.51%, and 12.12% for the respective years [6]. Company Overview - Longbai Group is a large diversified enterprise group focused on the research, manufacturing, and deep integration of new materials such as titanium, zirconium, and lithium. Its products are sold in over 100 countries and regions across six continents [7]. - The company has established a green industrial chain from mineral extraction and processing to the manufacturing of titanium dioxide and titanium metals, with production bases located in several provinces in China [7].