NBJF(SH:603997) ZHONGTAI SECURITIES·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company's Q4 performance met expectations, with a significant turning point in global seat replacement and scaling [1]. - The company is expected to achieve a revenue of 21.57 billion yuan in 2023, representing a year-on-year growth of 20.1%, and a net profit of 204 million yuan, marking a return to profitability [5][9]. - The report highlights the company's strong position in the domestic and global automotive seat market, with a projected domestic market size of 150 billion yuan by 2025 and a global market size of 300 billion yuan [9]. Summary by Sections Financial Performance - The company forecasts a revenue of 21.57 billion yuan for 2023, up 20.1% year-on-year, driven by recovery in major automotive markets and new passenger car seat production [9]. - The net profit is expected to be 204 million yuan, recovering from a loss in the previous year due to asset impairment [9]. - The report notes that the company's subsidiary, Grammer, also returned to profitability in 2023, with an operating EBIT of 0.57 billion euros [9]. Market Position - The company is positioned as a leading player in the passenger car seat market, with a significant market share and potential for domestic and global replacement [9]. - The report emphasizes the large market potential, with a current domestic market of 100 billion yuan and a global market of 300 billion yuan, expected to grow at a CAGR of 17% [9]. Profitability Forecast - The report slightly adjusts the profit forecast, expecting net profits of 204 million yuan in 2023, 430 million yuan in 2024, and 1.14 billion yuan in 2025, with growth rates of 109% and 169% for 2024 and 2025, respectively [9][19]. - The company is expected to maintain a PE ratio of 36X for 2024 and 14X for 2025, reflecting its strong growth potential [9].