NBJF(SH:603997) Yong Xing Zheng Quan·2024-07-26 01:30Investment Rating - The report initiates coverage with a "Buy" rating for the company [19][43]. Core Viewpoints - The company is positioned as a passenger car interior expert aiming to become a global leader in automotive seating, benefiting from increasing consumer demand for intelligent and comfortable seating [6][17]. - The automotive seating market in China is projected to grow from approximately 97.9 billion yuan in 2023 to about 115.4 billion yuan by 2026, with an annual growth rate of around 5.63% [2][45]. - The company has successfully expanded its product offerings and global presence following the acquisition of Grammer in 2019, with significant revenue growth expected in the coming years [13][18]. Summary by Sections Company Overview - The company was established in 1996 and initially focused on passenger car seat headrests and armrests, gaining entry into the supply chains of various domestic and international automakers. The acquisition of Grammer in 2019 allowed for product diversification and global expansion [13][24]. Market Dynamics - The automotive seating market is primarily dominated by foreign and joint venture manufacturers, with domestic brands gradually rising. The top five manufacturers held a combined market share of 67% in 2022, indicating substantial room for domestic alternatives [2][54]. Financial Performance - In 2023, the company reported revenue of 21.57 billion yuan, a year-on-year increase of 20.06%. The revenue from commercial vehicle and passenger vehicle seating was approximately 6.49 billion yuan and 0.66 billion yuan, respectively [17][18]. - Revenue projections for 2024, 2025, and 2026 are estimated at 24.63 billion yuan, 30.06 billion yuan, and 34.04 billion yuan, reflecting year-on-year growth rates of 14%, 22%, and 13% respectively [18]. Competitive Landscape - The competitive landscape shows that foreign brands like Lear and Adient dominate the market, while domestic brands are beginning to establish their presence. The report highlights the increasing market share of domestic manufacturers as they leverage technological advancements and customer relationships [53][54]. Growth Drivers - The report identifies that the upgrade of seating configurations and the increasing value per vehicle are significant growth drivers. The value of intelligent seating with features like ventilation and massage is expected to increase by approximately 50% compared to standard seats [50][74].