NBJF(SH:603997) Minsheng Securities·2024-07-05 04:30Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 10.23 CNY per share as of July 4, 2024, corresponding to a PE ratio of 34, 15, and 11 times for the years 2024, 2025, and 2026 respectively [4]. Core Views - The integration effects are becoming evident, with new products and customers accelerating expansion. The "Big Jifeng" (Jifeng + Grammer) is expected to become a global leader in smart cockpits. Projected revenues for 2024-2026 are 242.50 billion, 287.50 billion, and 319.50 billion CNY, with net profits of 3.82 billion, 8.67 billion, and 11.76 billion CNY respectively, leading to EPS of 0.30, 0.69, and 0.93 CNY [4][6]. Financial Forecasts - Revenue projections for the company are as follows: - 2023: 21,571 million CNY - 2024: 24,250 million CNY (growth rate of 12.4%) - 2025: 28,750 million CNY (growth rate of 18.6%) - 2026: 31,950 million CNY (growth rate of 11.1%) [8][10]. - Net profit forecasts are: - 2023: 204 million CNY - 2024: 382 million CNY (growth rate of 87.3%) - 2025: 867 million CNY (growth rate of 127.1%) - 2026: 1,176 million CNY (growth rate of 35.6%) [8][10]. - The company’s PE ratios are projected to decrease from 64 in 2023 to 11 in 2026, indicating improving valuation metrics over time [8][10]. Business Developments - The company has recently received a supplier nomination letter from a leading OEM for seat assembly projects, which is expected to start mass production in November 2025, with a total project lifecycle value of 2.7 billion CNY [6]. - The company has achieved significant milestones in expanding its seat assembly business, with a total of 12 projects in hand, amounting to a lifecycle total value of 748-795 billion CNY, which could potentially generate annual revenue of 125-133 billion CNY if all projects are mass-produced in the same year [6][8].