LB Group(002601) 华创证券·2024-05-22 03:02Investment Rating - The report upgrades the investment rating to "Strong Buy" due to the expected strong performance in the titanium dioxide export market [2][4]. Core Views - The company reported a revenue of 26.765 billion yuan in 2023, a year-on-year increase of 11%, while the net profit attributable to shareholders decreased by 5.64% to 3.226 billion yuan. The fourth quarter of 2023 saw a significant increase in net profit by 340.6% year-on-year [1][2]. - The company benefits significantly from the export demand for titanium dioxide, with a total production capacity of 1.51 million tons and a revenue of 17.768 billion yuan from titanium dioxide in 2023, reflecting a year-on-year growth of 9.83% [1][2]. - The report anticipates that the company will achieve net profits of 4.329 billion yuan, 5.109 billion yuan, and 6.103 billion yuan for the years 2024, 2025, and 2026, respectively, indicating a growth rate of 33.2%, 18.1%, and 19.6% [2][3]. Financial Summary - In 2023, the total revenue was 26.794 billion yuan, with a year-on-year growth of 10.9%. The net profit attributable to shareholders was 3.226 billion yuan, down 5.6% year-on-year [3][7]. - The projected revenue for 2024 is 34.106 billion yuan, with an expected growth rate of 27.3% [3][7]. - The earnings per share (EPS) for 2024 is estimated to be 1.81 yuan, with a price-to-earnings (P/E) ratio of 12 [3][7].