NBJF(SH:603997) Guoxin Securities·2025-11-07 12:22Investment Rating - The investment rating for the company is "Outperform the Market" [5][27]. Core Insights - The company reported a net profit of 0.97 billion yuan in Q3 2025, a significant turnaround from a loss in the same period last year, with a quarter-on-quarter growth of 97% [7][12]. - Revenue for Q3 2025 was 56.08 billion yuan, reflecting a year-on-year decline of 4.94% but a quarter-on-quarter increase of 2.23% [7][12]. - The improvement in profitability is attributed to ongoing cost reduction and efficiency measures, as well as the realization of scale effects in the seating business [7][12]. - The gross profit margin for Q3 2025 was 16.48%, up 2.4 percentage points year-on-year and 2.09 percentage points quarter-on-quarter [12]. - The company has made significant progress in its passenger car seat business, achieving a revenue of 19.84 billion yuan in the first half of 2025, which is a year-on-year increase of 100% [20][22]. Summary by Sections Financial Performance - In Q3 2025, the company achieved a net profit margin of 1.73%, a year-on-year turnaround and a quarter-on-quarter increase of 0.84 percentage points [12]. - The company’s operating expenses as a percentage of sales for Q3 2025 were 1.34% for sales, 6.67% for management, 3.73% for R&D, and 1.69% for financial expenses [12]. - The company expects to realize net profits of 5.04 billion yuan, 9.40 billion yuan, and 12.76 billion yuan for the years 2025, 2026, and 2027 respectively [27]. Business Development - The passenger car seat market is a significant opportunity, with the company positioned as a leading player in the domestic market, having secured 24 projects with global clients as of July 31, 2025 [20][21]. - The company is expanding its product offerings, including hidden electric air vents and car refrigerators, which are expected to contribute to growth [24][26]. - The company has established multiple seating production bases across China and is also expanding its global footprint through partnerships, including a joint venture in Germany to supply BMW [21][22]. Market Position - The company is positioned to benefit from the ongoing trend of domestic substitution in the passenger car seat market, which is currently dominated by foreign players [20][24]. - The company’s competitive advantages include cost efficiency and rapid response capabilities, which are critical in the customer-driven sales model of the automotive parts industry [20][24].