NBJF(SH:603997) Minsheng Securities·2024-08-15 06:30Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 11.12 CNY per share [3][4]. Core Views - The company's H1 2024 revenue reached 11.006 billion CNY, a year-on-year increase of 5.47%, while the net profit attributable to shareholders was 53 million CNY, a decrease of 35.56% year-on-year. The Q2 2024 revenue was 5.719 billion CNY, up 7.41% year-on-year and 8.18% quarter-on-quarter, with a net profit of 34 million CNY, a year-on-year increase of 55.00% and a quarter-on-quarter increase of 79.47% [3][4]. - The company has successfully turned around its passenger car seat business, delivering 89,000 sets of seats in H1 2024, generating revenue of 899 million CNY, compared to 108 million CNY in the same period last year, reflecting several-fold growth [3][4]. - The company is actively expanding its product offerings in the intelligent cockpit sector, aiming to become a global leader in this market by leveraging its strategic partnerships and technological advantages [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved a gross margin of 14.52%, an increase of 0.32 percentage points year-on-year. The gross margin for Q2 2024 was 14.37%, a decrease of 0.15 percentage points year-on-year and 1.06 percentage points quarter-on-quarter [3][4]. - R&D expenses in H1 2024 amounted to 239 million CNY, a year-on-year increase of 14.43%, reflecting the rapid development of strategic emerging businesses centered around passenger car seats [3][4]. Market Position and Strategy - The company has established a strong foothold in the passenger car seat market, with 18 projects in hand as of July 31, 2024, with a total lifecycle value of 84-88.7 billion CNY. If these projects are mass-produced in the same year, they could generate annual revenue of 14-14.8 billion CNY, significantly increasing the company's revenue [4]. - The company is focusing on cost reduction and efficiency improvement measures, including optimizing production capacity and enhancing supply chain management, to boost profitability [4]. Future Outlook - The company is projected to achieve revenues of 24.25 billion CNY, 28.75 billion CNY, and 31.95 billion CNY for 2024, 2025, and 2026, respectively, with net profits of 332 million CNY, 845 million CNY, and 1.161 billion CNY for the same years [5][6]. - The report anticipates that the combined entity of the company and its partner, Grammer, will become a global leader in the intelligent cockpit market, driven by new product developments and customer expansions [4].