LB Group(SZ:002601) KAIYUAN SECURITIES·2024-08-28 07:11Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a significant year-on-year increase in performance for H1 2024, with revenue reaching 13.804 billion yuan, up 4.09% year-on-year, and net profit attributable to shareholders at 1.721 billion yuan, up 36.40% year-on-year [4][5] - The report highlights the potential for capacity expansion in the mining sector, particularly for titanium and iron concentrates, which are expected to contribute significantly to future earnings [5] - Despite a decline in profitability due to falling prices of iron concentrates and reduced sales of titanium dioxide, the company remains optimistic about the recovery of titanium dioxide profitability in H2 2024, driven by seasonal demand [4][5] Financial Performance Summary - For H1 2024, the company achieved a net profit of 1.721 billion yuan, with a quarterly breakdown showing Q2 net profit at 770 million yuan, reflecting a 12.85% year-on-year increase but a 19.00% quarter-on-quarter decline [4] - The company’s titanium dioxide sales totaled 599,600 tons in H1 2024, a 3.70% increase year-on-year, with domestic sales accounting for 41.39% and international sales 58.61% [4] - The projected net profits for 2024-2026 are 3.306 billion yuan, 3.520 billion yuan, and 4.687 billion yuan respectively, with corresponding EPS estimates of 1.39 yuan, 1.47 yuan, and 1.96 yuan [4][6] Capacity Expansion and Projects - The company is actively pursuing the integration of two mining projects, with expected production capacities for titanium and iron concentrates reaching 2.48 million tons and 7.6 million tons per year by 2025 [5] - An investment of 1.08 billion yuan is planned for the construction of a new materials project focusing on scandium and vanadium, which aims to enhance the company's value-added offerings [5]