LB Group(002601) 新浪财经·2025-04-24 00:39Core Viewpoint - The company's 2024 performance fell short of expectations, while 1Q25 results slightly exceeded market expectations, primarily driven by better sales of titanium dioxide products [1][3]. Financial Performance - In 2024, the company reported revenue of 27.5 billion yuan, a year-on-year increase of 2.8%, and a net profit of 2.169 billion yuan, corresponding to earnings per share of 0.91 yuan, which represents a decline of 32.79% year-on-year [1]. - The gross margin in 4Q24 was 19%, showing a significant decline of 8.6 percentage points year-on-year and 6.8 percentage points quarter-on-quarter [1]. - The net cash flow from operating activities for 2024 was 3.8 billion yuan, an increase of 11.54% year-on-year [1]. - In 1Q25, revenue was 7.06 billion yuan, a year-on-year decrease of 3.21%, with a net profit of 686 million yuan, corresponding to earnings per share of 0.29 yuan, down 27.9% year-on-year [3]. Product Performance - Titanium dioxide revenue in 2024 grew by 6.82% to 18.98 billion yuan, with sales volume increasing by 8.25% to 1.255 million tons, despite a 1.3% decline in average price to 15,130 yuan per ton [2]. - The gross margin for titanium dioxide improved by 2.83 percentage points to 31.35% [2]. - Revenue from iron products decreased by 24.5% to 1.942 billion yuan, with sales volume down 30.8% to 3 million tons, leading to a gross margin decline of 8.34 percentage points to 40.81% [2]. - Sponge titanium revenue increased by 16.7% to 2.65 billion yuan, with sales volume up 42.6% to 66,900 tons, but the price fell by 18% to 39,600 yuan per ton, resulting in a gross margin drop of 14.77 percentage points to 3.11% [2]. Development Trends - The company has a relative advantage in titanium dioxide exports, particularly in regions with fast-growing demand such as India and Brazil, due to the lowest anti-dumping tax rate among domestic companies [4]. - The joint development of the Hongge North Mine and the Xujia Gou Iron Mine is ongoing, with expectations for new titanium ore capacity to gradually release by 2026, which will drive profit growth [4]. Profit Forecast and Valuation - Due to declining gross margins for titanium dioxide and sponge titanium products, the profit forecast for 2025 has been reduced by 26% to 2.8 billion yuan, with a 2026 profit forecast of 4.24 billion yuan [5]. - The current stock price corresponds to a price-to-earnings ratio of 14.3x for 2025 and 9.5x for 2026, with a target price of 23 yuan, indicating a potential upside of 36% [5].