NBJF(SH:603997) HTSC·2025-04-30 09:32Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company achieved a turnaround in Q1 2025, reporting revenue of 5.037 billion RMB, a year-over-year decrease of 4.73%, but a significant increase in net profit attributable to shareholders of 104 million RMB, up 447.56% year-over-year [1][2] - The integration of Grammer has contributed significantly to the company's profitability, with Grammer's Q1 revenue at 487 million EUR and a notable improvement in operating EBIT [2][4] - The company has a robust order book in its seating business, indicating a positive outlook for future performance [1][3] Summary by Sections Financial Performance - Q1 2025 gross margin improved to 16.32%, with a net margin of 2.09%, reflecting a significant enhancement in profitability [2] - The company expects revenue growth from 2025 to 2027, projecting revenues of 23.482 billion RMB, 26.748 billion RMB, and 32.743 billion RMB respectively, with net profits of 655.71 million RMB, 990.84 million RMB, and 1.363 billion RMB [5][7] Employee Incentives - The company announced an employee stock ownership plan aimed at incentivizing key personnel in the seating division, with performance targets set for revenue and net profit [3] Strategic Developments - The strategic restructuring of Grammer, including the divestment of unprofitable segments, is expected to enhance the company's operational flexibility and profitability [4] - The seating projects have expanded to include major clients, and new business lines are gradually ramping up production [4]