NBJF(SH:603997) KAIYUAN SECURITIES·2024-09-24 06:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is a leading player in the automotive seat industry, with significant growth potential driven by the recovery of its subsidiary, Grammer, and the increasing demand for passenger car seats [1][2] - The passenger car seat market is expected to grow significantly, with projections of reaching 337.9 billion yuan globally and 112.8 billion yuan domestically by 2027 [2] - The company has successfully integrated Grammer, enhancing its technological capabilities and customer base, which has led to a substantial increase in orders from both new energy vehicle manufacturers and traditional automakers [2][3] Summary by Sections Company Overview - The company has established itself as a global leader in automotive interior components, particularly in headrests, with over 25% market share [13] - Following the acquisition of Grammer in 2019, the company expanded its product offerings to include passenger car seats and commercial vehicle seats, achieving a global production and sales network [13][19] Market Potential - The automotive seat market is characterized by high barriers to entry and is currently dominated by foreign companies, presenting opportunities for domestic suppliers to capture market share due to the rise of electric and intelligent vehicles [2][19] - The average selling price (ASP) of passenger car seats is projected to exceed 4,000 yuan, indicating a high value component within the automotive industry [2] Financial Performance - The company expects to see a steady increase in net profit from 0.63 billion yuan in 2024 to 1.30 billion yuan in 2026, with corresponding earnings per share (EPS) rising from 0.05 yuan to 1.03 yuan [1][4] - Revenue is projected to grow from 21.57 billion yuan in 2023 to 32.10 billion yuan in 2026, reflecting a compound annual growth rate (CAGR) of approximately 15.7% [4] Operational Efficiency - The company has implemented cost reduction and efficiency improvement measures across its operations, which have begun to yield positive results, particularly in the profitability of Grammer [3][19] - The integration of Grammer is expected to enhance the company's overall profitability as it continues to streamline operations and reduce costs [3][19] Future Outlook - The company is well-positioned to capitalize on the growing demand for high-value automotive components, particularly in the context of the ongoing shift towards electric and intelligent vehicles [19][25] - The successful launch of new products, such as electric air vents and integrated armrests, is expected to contribute significantly to revenue growth in the coming years [25]