LB Group(002601) 国泰君安·2024-04-06 16:00Investment Rating - The report maintains an "Accumulate" rating for Longbai Group (002601) with a target price of 25.00 CNY, up from the previous target of 22.86 CNY [1][2]. Core Insights - The report highlights a slight year-on-year increase in titanium dioxide exports, driven by strong demand, which enhances the industry's overall prosperity [1]. - The company is positioned as a leader in titanium dioxide production in China, with significant production capacity and a robust supply chain [1][2]. - The report notes that the price of titanium dioxide has shown resilience, with a month-on-month increase of 2.06% in April [1]. Summary by Sections Company Overview - Longbai Group is a large inorganic fine chemical group focused on the research, development, and manufacturing of titanium and zirconium fine powder materials [2]. Financial Performance - The report projects revenue growth from 26,281 million CNY in 2023E to 29,928 million CNY in 2024E, reflecting a growth rate of approximately 10% [2]. - Net profit attributable to shareholders is expected to increase from 3,083 million CNY in 2023E to 4,062 million CNY in 2024E, indicating a growth of about 32% [2]. Market Dynamics - The report indicates that the average export price of titanium dioxide in February 2024 was approximately 2,201 USD/ton, showing a year-on-year increase of 3.97% [1]. - The report emphasizes that the company's production capacity is the largest in the country, with a significant portion of its production linked to the titanium concentrate supply [1][2]. Valuation Metrics - The report provides a comparison of valuation metrics, indicating a PE ratio of 15.49 for 2023E and a projected PE of 11.75 for 2024E [2]. - The report also notes a dividend yield of 5.2% for 2023E, expected to increase to 6.3% by 2025E [2].