NBJF(SH:603997) Guoxin Securities·2024-04-30 10:32Investment Rating - The report maintains a "Buy" rating for the company [5][38][39] Core Insights - The company achieved a revenue of 21.57 billion yuan in 2023, a year-on-year increase of 20.1%, and a net profit of 204 million yuan, recovering from a loss of 1.42 billion yuan in 2022 [1][7] - In Q1 2024, the company reported a revenue of 5.29 billion yuan, a year-on-year increase of 3.5%, but a net profit decline of 68.2% year-on-year [1][7] - The company is focusing on cost reduction and efficiency improvement measures, which are expected to enhance profitability [1][15] Revenue and Profitability - The company’s revenue is projected to grow from 24.31 billion yuan in 2024E to 32.87 billion yuan in 2026E, with a compound annual growth rate of approximately 14.2% [4][25] - The net profit is expected to increase significantly from 423 million yuan in 2024E to 1.17 billion yuan in 2026E, reflecting a strong recovery trajectory [4][25] Business Segments - The company’s seat division generated a revenue of 40.13 billion yuan in 2023, a year-on-year increase of 58.4%, with a net profit of 196 million yuan, up 166.4% [1][15] - The Gramer division achieved a revenue of 17.72 billion yuan in 2023, with a net profit of 22 million yuan, marking a return to profitability [1][8] Market Position and Strategy - The company is expanding its production capacity for passenger car seats and has successfully delivered 65,000 seat products to customers from May to December 2023 [1][33] - The company is establishing a joint venture in Germany with Gramer to expand its global seat business, particularly targeting European OEMs like BMW [1][33][34] - There is significant potential for domestic substitution in the passenger car seat market, as over 80% of the global market is currently dominated by foreign companies [1][48] Financial Metrics - The company’s EBIT margin improved from 1.7% in 2022 to 3.2% in 2023, with expectations to reach 5.9% by 2026E [4][25] - The return on equity (ROE) is projected to rise from 5.0% in 2023 to 23.9% in 2026E, indicating a strong recovery in profitability [4][25] Conclusion - The report suggests a downward revision of profit forecasts due to increased upfront investments in the passenger car seat business and the integration of overseas acquisitions, while maintaining a bullish outlook with a "Buy" rating [1][25][38]