LB Group(002601) 中原证券·2024-09-19 10:39Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [15]. Core Insights - The company reported a revenue of 13.792 billion yuan for the first half of 2024, representing a year-on-year growth of 4.10%. The net profit attributable to shareholders was 1.721 billion yuan, up 36.40% year-on-year, with a basic earnings per share of 0.72 yuan [2][3]. - The recovery in titanium dioxide prices has driven growth in the company's performance, with domestic prices rising from 14,967 yuan/ton to 16,050 yuan/ton in 2023, a 7.23% increase. The average price in the first half of 2024 was 16,174 yuan/ton, up 4.62% year-on-year [2][3]. - The company has strengthened its competitive position through vertical integration, acquiring several upstream titanium resources, which has improved its cost structure and resource security [6][3]. Financial Performance - The company's gross margin for the first half of 2024 was 27.53%, an increase of 2.42 percentage points year-on-year, while the net margin improved by 2.95 percentage points to 12.47% [3]. - The titanium dioxide business achieved a gross margin of 33.51%, up 7.67 percentage points year-on-year, contributing significantly to the overall profitability [3]. - The company produced 1.049 million tons of titanium concentrate in the first half of 2024, a 73.00% increase year-on-year, all of which was used internally [6]. Future Outlook - The company anticipates a recovery in performance in the second half of 2024, driven by seasonal demand and improved product competitiveness [6]. - Earnings per share (EPS) are projected to be 1.47 yuan and 1.64 yuan for 2024 and 2025, respectively, with corresponding price-to-earnings (PE) ratios of 10.95 and 9.80 based on the closing price of 16.11 yuan on September 18, 2024 [6].