Longbai Group's revenue in the first three quarters of 2023 was 20.262 billion yuan, a year-on-year increase of 12.38%

Recently, 002601.SZ released its report for the first three quarters of 2023. Data show that from January to September 2023, Longbai Group achieved revenue of 20.262 billion yuan, an increase of 12.38 percent over the same period last year; the net profit belonging to shareholders of listed companies was 2.142 billion yuan. Of this total, revenue contributed 7.014 billion yuan in the third quarter, up 24.59 percent from the same period last year, while the net profit attributed to shareholders of listed companies was 880 million yuan, up 28.9 percent from the previous quarter.

Longbai Group is mainly engaged in the production and sales of titanium dioxide, titanium sponge, zirconium products, lithium cathode materials and other products. in the field of titanium industry, Longbai Group has formed a production capacity of 1.51 million tons of titanium dioxide and 50, 000 tons of sponge titanium per year. both rank first in the global industry. By the end of 2022, the company is the world's largest producer of titanium dioxide.

In terms of product price, since 2022Q3, the demand for titanium dioxide has been depressed, and the price difference has bottomed out, reaching 2023. In 2006, under the promotion of real estate insurance delivery and insurance delivery, as well as the steady recovery of demand in other areas, the price gap of titanium dioxide ushered in the repair. Titanium dioxide market in the "gold nine silver ten" peak season demand, volume and price rise, superimposed titanium concentrate price rise, new production capacity, jointly promote performance improvement. Longbai Group has the integration of "titanium ore-titanium dioxide-sponge titanium", actively arranges the upstream titanium ore links, and shows that the mining industry is revitalized, the resources of vanadium-titanium magnetite are doubled, and Image, a shareholding company of Dongfang zirconium industry, is involved. Signed an agreement with Sheffield Resources Co., Ltd. to acquire McCauls ore project to develop titanium concentrate raw materials and effectively ensure the supply of raw materials.

In 2023, Longbai Group aims to enhance the ability of market competition and cooperation, comprehensively implement the thinking of benchmarking, comprehensively practice its internal skills, reduce costs and increase efficiency, and enhance the ability of enterprises to support production and operation from many aspects such as project expansion.

During the reporting period, the company increased its investment in projects such as sponge titanium, new energy and titanium concentrate upgrading, and actively explored new growth points, laying a solid foundation for sustainable development in the future. by the end of September 2023, the company's projects under construction totaled 7.82 billion yuan, an increase of 34.93% over January 2023. Among them, sponge titanium, after the company's new project is completed and put into production, the sponge titanium production capacity will reach 80,000 tons / year; in addition, the company has set up a joint venture with Zhejiang Yongjin to jointly build a 60,000 ton / year titanium alloy new material project. further improve the layout of the titanium industry.

In terms of new energy, Longbai Group has entered the field of new energy batteries through new projects, cooperation, acquisitions and other ways. The company has planned an annual production capacity of 200000 tons of battery material grade ferric phosphate project, an annual production capacity of 200000 tons of lithium-ion battery materials industrialization project, an annual output of 100000 tons of artificial graphite anode materials for lithium-ion batteries, with an annual output of 20%. Ten thousand tons of lithium ion battery anode materials integration project, 150000 tons / year electronic grade lithium iron phosphate project. Among them, 100000 tons of iron phosphate, 50, 000 tons of lithium iron phosphate, 25000 tons of graphite negative electrode, 50, 000 tons of graphitization has entered the stage of mass production. In this regard, the company will give full play to the advantages of "titanium-lithium coupling" and "large chemical industry, low cost" to open up a new growth curve in the field of new energy.

In terms of R & D investment, Longbai Group, through multi-directional and omni-directional international cooperation, employs foreign industry experts to participate in all kinds of technological innovation work, keeps in line with the highest international level, and enhances the company's international competitiveness in the field of middle and high-end titanium dioxide. From January to September 2023, the company's R & D expenses totaled 1.108 billion yuan, providing a strong backing for the company's technological leadership and product innovation. The R & D project being carried out by the company will also greatly enhance the comprehensive competitiveness of the company in the field of titanium-zirconium industry chain, providing the core driving force for the company to achieve green and high-quality development.

Taking into account the company's titanium dioxide price repair, sponge titanium production capacity gradually released, as China's only through the titanium industry chain advantage protruding, profit is expected to grow, to maintain Longbai Group's "buy" rating.

Professionals said that in the future, with its strong business ability, technical strength and innovation ability, Longbai Group is expected to continue to maintain a leading position; in addition, with the gradual completion and production of projects under construction, the company will also usher in new business growth points to achieve sustained and steady development.