NBJF(SH:603997) ZHONGTAI SECURITIES·2024-09-26 02:30Investment Rating - The report maintains a "Buy" rating for the company with a market price of 11.66 CNY [2] Core Views - The company is expected to experience a significant turning point in profitability due to the divestiture of overseas loss-making assets, specifically the TMD subsidiary, which is projected to improve overall profitability [3][4] - The seating business has reached a profitability inflection point, entering a phase of scale production with multiple new client projects [4] - The company is positioned as a leader in domestic seating solutions, with strong growth potential in both domestic and global markets [4] Financial Forecast and Valuation - Revenue is projected to grow from 21,571 million CNY in 2023 to 33,603 million CNY by 2026, with a compound annual growth rate (CAGR) of approximately 16% [1] - Net profit is expected to increase significantly from 204 million CNY in 2023 to 1,447 million CNY in 2026, reflecting a growth rate of 27% in 2026 [1] - Earnings per share (EPS) is forecasted to rise from 0.16 CNY in 2023 to 1.14 CNY in 2026 [1] - The price-to-earnings (P/E) ratio is projected to decrease from 72.4 in 2023 to 9.0 in 2026, indicating improved valuation as profitability increases [1] Business Developments - The divestiture of TMD is expected to alleviate financial strain and enhance profitability in the Americas region for the company [3] - The seating business has achieved significant revenue milestones, with 6.55 billion CNY in 2023 and nearly 9 billion CNY in the first half of 2024, marking the first quarterly profit in Q2 2024 [4] - The company has secured a diverse range of clients, including new energy vehicle manufacturers and joint ventures, indicating a robust order backlog [4]