gamefifreetoearn| Financial experts: In the first quarter of 2024, results increased by 64.15%, gross profit margin increased to 28.35%, increased resource reserves and the coupling of titanium and lithium promoted continued growth

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Company revenue increased 11% to 267 in 2023Gamefifreetoearn.65 million yuanGamefifreetoearnNet profit decreased by 5.64% to 3.226 billion yuan. In 2024, Q1 income increased by 4.52% to 7.288 billion yuan, net profit increased by 64.15% to 951 million yuan, and the rebound in titanium dioxide prices contributed to performance growth. To maintain the "buy" rating, the EPS is expected to be 1.71,1.96,2.42 yuan respectively from 2024 to 2026. Risks include fluctuations in raw material prices.

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The company's performance increased significantly in 2023, and profits surged in the first quarter of 2024.

In 2023, the company's operating income was 26.765 billion yuan, an increase of 11% over the same period last year. Although the return net profit decreased by 5.64% to 3.226 billion yuan, the company's performance increased significantly in the first quarter of 2024. In the quarter, the company's operating income reached 7.288 billion yuan, up 4.52% from the same period last year, while its net profit reached 951 million yuan, a year-on-year increase of 64.15%.

The rise in the price of titanium dioxide has played a key role in supporting the company's profits.

The continuous recovery of titanium dioxide prices is the main driving force of the company's performance growth. The price of titanium dioxide rose to an average of 16400 yuan per tonne in the fourth quarter of 2023 and maintained a strong price of 16100 yuan per tonne in the first quarter of 2024, up 5 per cent from last year, although it fell slightly from a month earlier. As a result, the company's gross profit margin rose to 28.35% in the first quarter of 2024, up 5.25 percentage points from a year earlier.

With the coordinated development of resource reserve and industrial chain, the company has broad prospects in the future.

As the world's largest owner of sponge titanium production capacity and the third largest owner of titanium dioxide production capacity, the company is promoting projects such as "joint development of Honggebei Mining area and Xujiagou Iron Mine" to enhance self-sufficiency in resources. to ensure the stability and long-term development of the industry. At the same time, the by-product ferrous sulfate and surplus capacity caustic soda, sulfuric acid, steam and hydrogen are directly or indirectly used in the production of positive and negative materials for lithium batteries to achieve "titanium-lithium coupling". It is expected to significantly improve the company's cost advantage and performance through the synergy effect of the industrial chain.

Investors are advised to maintain a "buy" rating while paying attention to potential risks

Investors are advised to maintain a "buy" rating against the backdrop of the company's expected earnings per share of 1.71,1.96,2.42 yuan between 2024 and 2026. However, according to the risk tips, we should pay close attention to factors such as raw material price fluctuations, project schedule and safety and environmental risks, which may have an impact on the company's profitability and product prices.