Key Points Industry and Company * **Company**: Jiefeng Co., Ltd. * **Industry**: Automotive seating and interior components Core Views and Arguments * **Revenue and Profitability**: Jiefeng reported revenue of 5.9 billion RMB in Q3 2024, up 7% YoY, but net profit was -5.9 billion RMB, a significant decline from the previous year. This was primarily due to large write-offs in Q3, including the sale of TMD, European layoffs, and impairment charges. * **TMD Sale**: The sale of TMD had a negative impact on the company's performance, with an estimated impact of 2.5 billion RMB. TMD had been a drag on Glamor's performance, with annual losses of 200-300 million RMB, accounting for 70-80% of the losses in the Americas. * **European Layoffs**: Layoffs in Europe resulted in approximately 2 billion RMB in expenses, mainly due to the poor performance of the European automotive industry. Additionally, there were intermediary fees of about 20 million RMB. * **Highway Car Impairment**: Impairment charges for Highway Car had a negative impact of over 30 million RMB, mainly due to the uncertain future of the Highway Car OEM. * **Traditional and New Business**: Traditional businesses such as headrests and armrests remained stable, with EBITDA profit margins between 15-17%. New businesses such as passenger car seats achieved revenue of 1.1 billion RMB, exceeding the budget, with a profit contribution of over 20 million RMB and a profit margin of 2%, also exceeding the budget. Air vents achieved revenue 30% higher than expected and remained profitable. The car refrigerator began contributing revenue in Q2 and turned positive in Q3, achieving several million RMB in profit, ahead of the budget. * **Glamor China**: Glamor China was the main profit contribution area, with stable revenue growth. However, the impairment charge for Highway Car affected the EBITDA profit margin, which fell slightly. If the impairment charge is excluded, the profit margin is expected to be similar to last year, around 10%. Glamor's performance in Europe and the Americas in Q3 was affected by the decline in industry beta, showing a year-on-year decline trend. The company took measures such as layoffs to respond to the decline in industry beta. * **New Projects**: Jiefeng has several new projects coming online in Q4 and next year, including Shanhai T1, FAW Volkswagen Tiguang, Chery iPad123, Audi PP platform models, Geely models, and new energy vehicle brands such as Xpeng and Li Auto. These models are expected to contribute significantly to revenue growth. * **Customer Strategy**: Jiefeng focuses on head customers, including new energy vehicle brands, joint ventures, and leading domestic brands. This strategy ensures stability and long-term cooperation. * **Competitive Advantage**: Jiefeng has a significant competitive advantage in the passenger car seat market, including high product quality, strong customer expansion capabilities, and efficient management. The company also continues to invest in capacity expansion and cost optimization. Other Important Points * **Factory Capacity**: Jiefeng has sufficient factory capacity, with many factories under construction or not yet fully operational. The company carefully plans capacity based on customer demand to avoid low utilization rates and high costs. * **Investment in New Projects**: Jiefeng plans to invest in a new seat research and development center in Shanghai next year, with an estimated investment of 4-5 billion RMB. * **Autonomous Driving**: Jiefeng is actively developing autonomous driving-related products and technologies, including autonomous driving seats and control systems. * **Global Market**: Jiefeng has a strong global presence, with operations in Europe, the Americas, and Asia. The company is committed to expanding its global market share and becoming a leading player in the automotive seating industry.

Key Points Industry and Company * **Company**: Xifeng Auto Seating Co., Ltd. (Xifeng) * **Industry**: Automotive seating market, particularly for passenger vehicles and commercial vehicles Core Views and Arguments * **Revenue Growth**: Xifeng reported revenue of 5.9 billion yuan in Q3 2023, a 7% increase year-on-year. * **Profitability**: Xifeng experienced a net loss of 590 million yuan in Q3 2023 due to several factors, including the sale of TMD, layoffs in Europe, and impairment of goodwill. * **TMD Sale**: The sale of TMD, a loss-making subsidiary, had a significant impact on the company's financial performance in Q3 2023. * **Europe Layoffs**: Layoffs in Europe were necessary due to the decline in the automotive industry's beta in that region. * **New Business Performance**: Xifeng's new business, particularly in passenger vehicle seating, performed well in Q3 2023, exceeding budgeted expectations. * **China Region Performance**: Xifeng's China region continued to contribute significantly to the company's profitability, with stable revenue growth and a healthy EBIT margin. * **Competitive Landscape**: Xifeng faces competition from established foreign players in the mid-to-high-end automotive seating market. The company emphasizes its technical capabilities and cost competitiveness. Other Important Points * **Capital Expenditure**: Xifeng plans to invest approximately 4-5 billion yuan in capital expenditures in 2024, primarily for the construction of a research and development center in Shanghai. * **Seat Components**: Xifeng has made progress in the development of seat components, including comfort keys and rear seat frames. The company is considering further investment in front seat frames as its scale grows. * **Captive Supply**: Xifeng has established captive supply arrangements for certain components, such as front seat frames, to improve cost competitiveness. * **Future Outlook**: Xifeng remains optimistic about the growth prospects of the automotive seating market and its own business. The company expects to continue expanding its market share and profitability in the coming years.

| 证券代码：603997 | 证券简称：继峰股份 公告编号：2024-085 | | --- | --- | | 转债代码：110801 | 转债简称：继峰定 01 | 宁波继峰汽车零部件股份有限公司 关于为控股子公司提供担保的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 被担保人名称：宁波继峰汽车零部件股份有限公司（以下简称"公司"） 的控股子公司 Grammer Jifeng Automotive Seating CZ s.r.o.（以下简称"格拉默继 峰座椅（捷克）"） 公司本次为格拉默继峰座椅（捷克）提供担保的金额为 400 万欧元。截 至本公告披露日，公司实际为格拉默继峰座椅（捷克）提供的担保余额为 400 万欧元（含本次）。 截至本公告披露日，公司无逾期对外担保的情况。 特别风险提示：公司及控股子公司对外担保总额超过最近一期经审计净 资产 100%，敬请广大投资者注意投资风险。 一、担保情况概述 （一）本次担保基本情况 为落实乘用车座椅业务全球化战略，公司控股子公司格拉默继峰座椅（捷克） ...

| 证券代码：603997 | 证券简称：继峰股份 公告编号：2024-084 | | --- | --- | | 转债代码：110801 | 转债简称：继峰定 01 | 宁波继峰汽车零部件股份有限公司 关于"继峰定 01"付息公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 宁波继峰汽车零部件股份有限公司(以下简称"本公司")于 2019 年 11 月 18 日发行的可转换公司债券将于 2024 年 11 月 18 日开始支付自 2023 年 11 月 18 日至 2024 年 11 月 17 日期间的利息。根据本公司《宁波继峰汽车零部件股份有 限公司发行可转换公司债券、股份及支付现金购买资产并募集配套资金暨关联交 易报告书》（以下简称"《报告书》"）有关条款的规定，现将有关事项公告如 下： 一、可转债发行上市概况 （一）债券简称：继峰定 01 （七）债券利率：第一年为 3.00%、第二年为 3.00%、第三年为 3.00%、第 四年为 3.00%、第五年为 3.00%、第六年为 3.00%。计息起始日为 ...

Investment Rating - The report maintains a "Buy" rating for the company [1][9] Core Views - The company reported a revenue of approximately 16.906 billion yuan for the first three quarters of 2024, a year-on-year increase of about 6.07%, while the net profit attributable to the parent company was approximately -532 million yuan, a year-on-year decrease of about 445.02% [1] - The company plans to sell 100% equity of TMD LLC for an initial transaction price of 40 million USD, which aligns with its strategic plan to enhance the quality and efficiency of overseas assets [1] - The company is expanding its new business categories, including hidden electric air outlets and vehicle refrigerators, which are expected to become new growth points [1] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of approximately 5.9 billion yuan, a year-on-year increase of about 7.20% and a quarter-on-quarter increase of about 3.15% [1] - The gross profit margin for Q3 2024 was approximately 14.08%, a decrease of 1.02 percentage points year-on-year and 0.29 percentage points quarter-on-quarter [1] - The net profit margin for Q3 2024 was approximately -11.69%, a decrease of 13.05 percentage points year-on-year and 12.23 percentage points quarter-on-quarter [1] Client Performance - Major clients showed strong production performance, with NIO EC6, NIO ES6, and Li Auto L6 producing approximately 8,600, 26,900, and 76,800 units respectively in Q3 2024, with year-on-year changes of +313.77%, -11.79%, and +78.97% [1] Business Outlook - The company expects revenue for 2024, 2025, and 2026 to be approximately 23.87 billion, 28.13 billion, and 32.51 billion yuan, representing year-on-year growth rates of 10.7%, 17.8%, and 15.6% respectively [2] - The net profit attributable to the parent company is projected to be approximately -438 million, 853 million, and 1.231 billion yuan for 2024, 2025, and 2026, with year-on-year growth rates of -314.7%, +295.0%, and +44.2% respectively [2]

Investment Rating - The report maintains an "Outperform the Market" rating for the company [2][20][25] Core Views - The company successfully divested its North American loss-making assets, which is expected to accelerate performance release in 2025 [1][20] - The seating business is ramping up production, with the company achieving profitability in its seating segment during Q3 2024 [1][4] - The company has made significant progress in securing global customers and expanding its production capacity for passenger car seats [1][15] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 16.9 billion yuan, a year-on-year increase of 6%, and a net profit attributable to shareholders of -532 million yuan [1][4] - In Q3 2024, the company achieved revenue of 5.9 billion yuan, a year-on-year increase of 7.2% and a quarter-on-quarter increase of 3.2%, with a net profit of -585 million yuan [1][4] - The company has adjusted its profit forecasts for 2024 downwards while increasing forecasts for 2025 and 2026, expecting net profits of -464 million yuan, 915 million yuan, and 1.33 billion yuan respectively [20][24] Business Development and Market Position - The company has delivered 89,000 sets of seating products in the first half of 2024, generating revenue of 899 million yuan, which is a significant increase compared to the previous year [1][14] - The company has established a strong order book with 18 projects for passenger car seats as of July 31, 2024, including a significant contract with BMW for seat assembly [1][15] - The domestic market for passenger car seats presents substantial opportunities for local suppliers, as over 80% of the global market is currently dominated by foreign companies [1][17] Cost and Margin Analysis - The company has incurred a total of 300 million yuan in impairment provisions due to the divestiture of TMD assets and other adjustments [1][20][23] - The management expenses increased by 230 million yuan in Q3 2024 due to restructuring and severance costs associated with the integration of Gramer [1][20] - The overall gross margin is expected to improve as the company ramps up its domestic seating business, with projections of 15%, 16%, and 18% for 2024-2026 [22][24]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company is experiencing short-term disruptions in Q3 2024, but there are signs of long-term growth potential ahead [1] - The company reported a net profit attributable to shareholders of 204 million in 2023, with a significant decline expected in 2024, projecting a net loss of 446 million [2][3] - The report emphasizes the importance of 2024 as a critical growth point for the company, with increasing certainty regarding performance inflection points [1] Financial Performance Summary - Revenue for the first three quarters of 2024 is projected to be 16.906 billion, a year-on-year increase of 6.3% [1] - The company’s gross profit margin for Q3 2024 is reported at 14.1%, a decrease of 1.0 percentage points year-on-year [1] - Operating income for Q3 2024 is expected to be 5.9 billion, reflecting a year-on-year decline of 6.19% [1] Financial Forecasts - The company’s revenue is forecasted to grow from 21.571 billion in 2023 to 33.669 billion by 2026, with a compound annual growth rate (CAGR) of approximately 23.9% [2][3] - The net profit attributable to shareholders is expected to recover from a loss of 446 million in 2024 to a profit of 1.212 billion by 2026 [2][3] - The report projects a gradual improvement in gross profit margin from 14.8% in 2023 to 16.5% in 2026 [4] Key Financial Ratios - The report indicates a projected return on equity (ROE) of -8.7% in 2024, improving to 17.0% by 2026 [4] - The price-to-earnings (P/E) ratio is expected to decrease from 74.83 in 2023 to 13.89 by 2026, indicating a potential increase in valuation attractiveness [4] - The company’s debt-to-equity ratio is projected to improve from 302.9% in 2023 to 236.2% by 2026, reflecting better financial stability [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][9] Core Views - The company's Q3 2024 performance was impacted by the struggles of its subsidiary, Grammer, but it is laying a solid foundation for future growth [4] - Despite a decline in net profit due to asset impairment and increased management costs, the company is expected to optimize its business structure in North America and Europe, which will enhance overall profitability in the future [4] - The company has successfully turned around its Changzhou seat factory, contributing positively to its performance, with a significant increase in orders and operational efficiency [5] Financial Performance Summary - In Q3 2024, the company achieved revenue of 5.9 billion yuan, a year-on-year increase of 7.2%, but reported a net loss attributable to shareholders of 585 million yuan, a decline of 915.63% year-on-year [2][4] - The company expects to achieve revenues of 23.85 billion, 28.05 billion, and 31.58 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 11%, 18%, and 13% [7] - The forecasted net profit attributable to shareholders for 2024 is -477 million yuan, with subsequent recoveries to 810 million yuan in 2025 and 1.15 billion yuan in 2026, reflecting growth rates of -334%, 270%, and 42% respectively [7] Market Performance Summary - The company's stock has underperformed the CSI 300 index by 2.9% over the past month, but has outperformed by 18.6% over the past three months [3] - The current stock price is 13.30 yuan, with a 52-week price range of 9.41 to 15.08 yuan [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has seen a revenue increase of 6.07% year-on-year for the first three quarters of 2024, with total revenue reaching 169.06 billion yuan. However, it reported a net loss attributable to shareholders of 5.32 billion yuan due to the sale of its U.S. TMD business and integration costs from Grammer [3][4] - The sale of the U.S. TMD business is expected to incur a loss of 2.8 to 3.8 billion yuan, but it is anticipated to improve profitability in the long term by allowing the company to focus on its core business [4][5] - The company has secured 19 contracts for passenger car seats, indicating a strong order backlog and potential for revenue growth as production ramps up [5] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 59.00 billion yuan, a year-on-year increase of 7.20% and a quarter-on-quarter increase of 3.15%. The net loss for the quarter was 5.85 billion yuan, primarily due to the sale of TMD and increased expense ratios [4] - The company’s revenue for 2024 is projected to be 24.738 billion yuan, with a year-on-year growth of 14.7%. The net profit attributable to shareholders is expected to be -5.13 billion yuan for 2024, improving to 8.11 billion yuan in 2025 and 12.99 billion yuan in 2026 [6] Business Strategy - The company is focusing on its passenger car seat business, which is expected to grow significantly due to the integration of Grammer, enhancing its technology, brand, and customer resources [5] - The divestiture of the U.S. TMD business is part of a strategy to streamline operations and improve profitability, particularly in the Americas [5] Market Position - The company has established itself as a key supplier in the passenger car seat market, leveraging its service efficiency and brand strength to penetrate both new and traditional automotive manufacturers [5]

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 15.3 CNY, compared to the current price of 13.30 CNY [1][2]. Core Views - The company reported a revenue of 5.9 billion CNY in Q3 2024, representing a year-on-year increase of 7.2% and a quarter-on-quarter increase of 3.2%. However, the net profit attributable to shareholders was -585 million CNY, a year-on-year decline of 656 million CNY and a quarter-on-quarter decline of 619 million CNY [1][2]. - The revenue growth was driven by the ramp-up of the Ideal L6 seat production, with 100,000 sets produced by early September 2024, contributing approximately 300 million CNY to revenue [1][2]. - The decline in net profit was primarily due to one-time impairment losses and increased expenses, with a gross margin of 14.1%, down 1.0 percentage points year-on-year and 0.3 percentage points quarter-on-quarter [1][2]. - The report highlights that the company is expected to improve profitability significantly after the sale of TMD, which has been a major source of losses [1][2]. - The company anticipates substantial profit growth from its complete seat business, projecting revenues of 5.8 billion CNY and net profits of 290 million CNY by 2025 [1][2]. Financial Summary - The total revenue for 2023 is projected at 21.571 billion CNY, with a year-on-year growth rate of 20.1%. For 2024, the revenue is expected to be 23.072 billion CNY, reflecting a growth rate of 7.0% [2][3]. - The net profit attributable to shareholders is forecasted to be -452 million CNY in 2024, a significant decline from 204 million CNY in 2023, with a recovery expected in 2025 to 920 million CNY [2][3]. - The report provides a detailed financial forecast, including earnings per share (EPS) expected to be -0.36 CNY in 2024, with a recovery to 0.73 CNY in 2025 and 0.98 CNY in 2026 [2][3].