龙佰集团（002601）：潜龙在渊，蓄势以待

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a total revenue of 27.54 billion yuan for 2024, reflecting a year-on-year increase of 2.8%. However, the net profit attributable to shareholders decreased by 32.8% to 2.17 billion yuan, with the net profit excluding non-recurring items also down by 32.8% to 2.10 billion yuan [6][10]. - In Q1 2025, the company achieved a revenue of 7.06 billion yuan, a year-on-year decline of 3.2% but a quarter-on-quarter increase of 6.1%. The net profit attributable to shareholders was 690 million yuan, down 27.9% year-on-year but recovering from a negative quarter-on-quarter result [6][10]. - The company plans to distribute a cash dividend of 5 yuan per 10 shares to all shareholders, totaling 1.19 billion yuan. Additionally, the chairman proposed a share buyback plan with a total fund of no less than 300 million yuan and no more than 500 million yuan for employee stock ownership plans or equity incentives [6][10]. Financial Performance - The company’s titanium dioxide sales reached 1.2545 million tons in 2024, an increase of 8.25% year-on-year, while sponge titanium sales rose by 42.57% to 66,900 tons. However, iron ore sales fell by 30.80% to 3.0022 million tons [10]. - The company is expected to achieve net profits of 2.48 billion yuan, 3.38 billion yuan, and 4.08 billion yuan for the years 2025, 2026, and 2027, respectively [10]. Market Strategy - The company is actively pursuing an overseas expansion strategy, adjusting its export focus towards emerging markets in the Middle East and Southeast Asia due to anti-dumping investigations affecting its international market space [10]. - The company aims to enhance its competitive strength by increasing its capital investment in its wholly-owned subsidiary, thereby supporting its external investments and business expansion [10]. Industry Outlook - The titanium dioxide industry is currently experiencing an imbalance in supply and demand, with prices showing slight fluctuations. However, the company anticipates a recovery in profitability due to increasing demand in sectors such as aerospace and medical [10].