NBJF(603997) 国信证券·2024-11-05 07:11Investment Rating - The report maintains an "Outperform the Market" rating for the company [2][20][25] Core Views - The company successfully divested its North American loss-making assets, which is expected to accelerate performance release in 2025 [1][20] - The seating business is ramping up production, with the company achieving profitability in its seating segment during Q3 2024 [1][4] - The company has made significant progress in securing global customers and expanding its production capacity for passenger car seats [1][15] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 16.9 billion yuan, a year-on-year increase of 6%, and a net profit attributable to shareholders of -532 million yuan [1][4] - In Q3 2024, the company achieved revenue of 5.9 billion yuan, a year-on-year increase of 7.2% and a quarter-on-quarter increase of 3.2%, with a net profit of -585 million yuan [1][4] - The company has adjusted its profit forecasts for 2024 downwards while increasing forecasts for 2025 and 2026, expecting net profits of -464 million yuan, 915 million yuan, and 1.33 billion yuan respectively [20][24] Business Development and Market Position - The company has delivered 89,000 sets of seating products in the first half of 2024, generating revenue of 899 million yuan, which is a significant increase compared to the previous year [1][14] - The company has established a strong order book with 18 projects for passenger car seats as of July 31, 2024, including a significant contract with BMW for seat assembly [1][15] - The domestic market for passenger car seats presents substantial opportunities for local suppliers, as over 80% of the global market is currently dominated by foreign companies [1][17] Cost and Margin Analysis - The company has incurred a total of 300 million yuan in impairment provisions due to the divestiture of TMD assets and other adjustments [1][20][23] - The management expenses increased by 230 million yuan in Q3 2024 due to restructuring and severance costs associated with the integration of Gramer [1][20] - The overall gross margin is expected to improve as the company ramps up its domestic seating business, with projections of 15%, 16%, and 18% for 2024-2026 [22][24]