NBJF(SH:603997) HTSC·2025-04-01 11:13Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 16.59 [8][9]. Core Views - The company achieved a revenue of RMB 22.255 billion in 2024, a year-on-year increase of 3.17%, but reported a net loss attributable to shareholders of RMB -566.8 million, a significant decline of 378.01% year-on-year [1][5]. - The company is expected to benefit from a strong order book in its seating business, entering a harvest period, and is positioned to operate more efficiently after the divestiture of TMD assets and cost-cutting measures in Europe [1][4][3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of RMB 22.255 billion, with a year-on-year growth of 3.17%. However, it faced a net loss of RMB -566.8 million, a drastic decline from the previous year [1][7]. - The fourth quarter of 2024 saw revenue of RMB 5.349 billion, down 5.03% year-on-year and 9.33% quarter-on-quarter, with a net loss of RMB -34.864 million [1]. Business Segments - The seating segment achieved a revenue of RMB 6.43 billion in 2024, a year-on-year increase of 60.3%, and reached breakeven for the first time, with 330,000 units delivered [2]. - The Glamer segment reported a revenue of RMB 16.1 billion in 2024, a decline of 9.1%, and a net loss of RMB -625 million, primarily due to the divestiture of the TMD business and restructuring costs in Europe [3]. Future Outlook - The company is expected to see significant performance improvements in 2025 due to ongoing global business integration and cost reduction initiatives [4]. - New projects in the seating business with major clients are anticipated to drive revenue and profitability growth in 2025 [2][4]. Earnings Forecast and Valuation - Revenue projections for 2025-2027 are set at RMB 23.482 billion, RMB 26.748 billion, and RMB 32.743 billion, respectively, with net profit estimates of RMB 655.71 million, RMB 990.84 million, and RMB 1.363 billion [5][7]. - The report assigns a 32x PE ratio for 2025, reflecting a 30% premium due to expected rapid growth in net profit [5].