NBJF(SH:603997) Huachuang Securities·2024-08-18 02:08Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 13.3 CNY [1][2] Core Views - The company has shown significant improvement in its seating business, with a notable reduction in losses and an expectation of substantial profits by 2025 [1] - The company is expanding its market presence in China and improving the operations of its European subsidiary, Grammer [1] - The overall automotive market conditions are expected to improve in the second half of 2024, which may positively impact the company's performance [1] Financial Performance Summary - In Q2 2024, the company achieved revenue of 5.7 billion CNY, a year-on-year increase of 7.4% and a quarter-on-quarter increase of 8.2% [1] - The net profit attributable to the parent company for Q2 2024 was 34 million CNY, representing a year-on-year increase of 52% and a quarter-on-quarter increase of 79% [1] - The company delivered 89,000 complete seats in the first half of 2024, with revenue from passenger car seats reaching 897 million CNY, a year-on-year increase of 630% [1][2] Future Projections - The company is projected to achieve net profits of 330 million CNY, 890 million CNY, and 1.23 billion CNY for the years 2024, 2025, and 2026 respectively, with year-on-year growth rates of 60%, 174%, and 37% [1][2] - The passenger car seating business is expected to contribute 5.5 to 6 billion CNY in revenue and 200 to 300 million CNY in net profit by 2025 [1] Market Position and Strategy - The company has secured 18 projects for passenger car seats as of July 31, 2024, and is expected to benefit from multiple orders entering the production cycle in 2024 and 2025 [1] - The company is also expanding its other new businesses, with significant orders in air outlet products and vehicle refrigerators [1]