LB Group(SZ:002601) EBSCN·2024-08-28 23:37Investment Rating - The report maintains a "Buy" rating for Longbai Group (002601.SZ) [2][5] Core Views - In the first half of 2024, Longbai Group achieved a revenue of 13.792 billion yuan, a year-on-year increase of 4.1%, and a net profit attributable to shareholders of 1.721 billion yuan, up 36.4% year-on-year [1] - The company has signed a strategic cooperation agreement with Sichuan Resources Group to deepen its upstream resource layout, which is expected to enhance its raw material supply capabilities [1][2] Summary by Sections Financial Performance - In H1 2024, the titanium dioxide business generated revenue of 9.385 billion yuan, a 6.8% increase year-on-year, with a gross margin improvement of 7.7 percentage points to 33.5% [1] - The company sold 599,600 tons of titanium dioxide in H1 2024, a 3.7% increase year-on-year, with international sales accounting for 58.6% of total sales [1] - The production of titanium concentrate reached 1.0456 million tons, a significant increase of 73.0% year-on-year, ensuring a stable supply of raw materials [1] Strategic Developments - The strategic cooperation with Sichuan Resources Group involves collaboration in the vanadium-titanium magnetite mining and processing sectors, aiming to explore new opportunities in the vanadium-titanium industry [1] - The partnership will prioritize the supply of titanium concentrate to Longbai Group, enhancing its resource acquisition capabilities both domestically and internationally [1] Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been adjusted downward due to recent narrowing of titanium dioxide profit margins and the impact of anti-dumping measures in the EU [2] - Expected net profits for 2024, 2025, and 2026 are 3.517 billion yuan (down 12.3%), 4.375 billion yuan (down 14.2%), and 4.924 billion yuan (down 16.7%) respectively [2]