LB Group(002601) 华创证券·2025-05-12 14:13Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][7][17]. Core Views - The company has turned profitable in Q1 2025, with significant growth expected in the mining sector by 2026 [2]. - The company is positioned as a leader in titanium dioxide and sponge titanium production, with strong cost advantages and global pricing power [7]. - The report highlights the stability of titanium dioxide prices and the company's robust production capacity, which is expected to support future earnings [7]. Financial Performance Summary - Revenue Forecast: - 2024A: 27,539 million - 2025E: 30,386 million (10.3% YoY growth) - 2026E: 34,954 million (15.0% YoY growth) - 2027E: 39,100 million (11.9% YoY growth) [3][8] - Net Profit Forecast: - 2024A: 2,169 million - 2025E: 2,824 million (30.2% YoY growth) - 2026E: 3,821 million (35.3% YoY growth) - 2027E: 4,256 million (11.4% YoY growth) [3][8] - Earnings Per Share (EPS): - 2024A: 0.91 - 2025E: 1.18 - 2026E: 1.60 - 2027E: 1.78 [3][8] - Valuation Ratios: - Price-to-Earnings (P/E) ratios are projected at 18 for 2024, decreasing to 9 by 2027 [3][8]. Market Position and Strategy - The company has a strong market position with a titanium dioxide production capacity that ranks first globally, and it is actively expanding its titanium ore resources [7]. - A strategic partnership with Sichuan Resource Group aims to enhance the company's control over mineral resources, which is expected to solidify its market position [7]. - The report notes that the company’s operational efficiency and production capacity are superior to industry averages, with a utilization rate of 85.79% in 2024 [7].