Sichuan Anning Iron and Titanium (SZ:002978) Guohai Securities·2024-04-23 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][22]. Core Insights - The company achieved a revenue of 1.856 billion yuan in 2023, a year-on-year decrease of 7.0%, and a net profit attributable to shareholders of 936 million yuan, down 14.5% year-on-year [2][17]. - The company aims to increase its titanium concentrate production target for 2024, anticipating significant growth in annual performance [8][20]. - The global supply of titanium concentrate remains tight, with limited new production capacity expected in the short term, which may benefit the company's market position [7][18]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 479 million yuan, a year-on-year decrease of 1.4% and a quarter-on-quarter decrease of 9.9% [2][17]. - For Q1 2024, the company achieved a revenue of 445 million yuan, a slight increase compared to the previous year, with a net profit of 230 million yuan, down 0.57% year-on-year [2][6]. - The company’s gross profit margin for 2023 was 66.59%, reflecting a decline from previous years [17][77]. Production and Sales Data - The company’s titanium concentrate production in 2023 was 494,700 tons, a slight increase of 0.33% year-on-year, while the sales volume of titanium concentrate was 493,000 tons, down 3.90% year-on-year [20][17]. - The average selling price of titanium concentrate in 2023 was 2,330 yuan per ton, a decrease of 3.11% year-on-year [17][20]. Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 2.134 billion yuan, 2.341 billion yuan, and 3.152 billion yuan respectively, with net profits expected to be 1.110 billion yuan, 1.152 billion yuan, and 1.369 billion yuan [10][22]. - The company is expected to maintain a leading position in the domestic titanium concentrate supply market, with a focus on vertical integration and resource acquisition strategies [21][22].