NBJF(SH:603997) GF SECURITIES·2024-05-03 07:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 15.01 CNY per share, indicating a potential upside from the current price of 13.27 CNY [15][54]. Core Views - The company is positioned as a leader in the global passenger vehicle interior and commercial vehicle seating markets, with significant growth potential following the acquisition of Grammer and entry into the passenger vehicle seating market [52][54]. - The company reported a revenue of 21.57 billion CNY in 2023, a year-on-year increase of 20.1%, and achieved profitability with a net profit of 204 million CNY, marking a turnaround from previous losses [19][54]. - The company is expected to see continued growth in earnings per share (EPS), projected at 0.38 CNY, 0.77 CNY, and 1.07 CNY for the years 2024, 2025, and 2026 respectively, reflecting a compound annual growth rate in net profit of 87.7% [54]. Financial Summary - The company achieved a gross margin of 14.8% and a net margin of 1.0% in 2023, both showing improvements year-on-year [22]. - The revenue forecast for the upcoming years is as follows: 25.39 billion CNY in 2024, 31.39 billion CNY in 2025, and 37.10 billion CNY in 2026, with respective growth rates of 17.7%, 23.6%, and 18.2% [3][54]. - The company’s EBITDA is projected to grow from 1.53 billion CNY in 2023 to 2.85 billion CNY by 2026 [3][54]. Segment Performance - The subsidiary Grammer turned profitable in 2023, contributing a net profit of 22 million CNY, while the main division achieved a net profit of 196 million CNY, a year-on-year increase of 166.3% [19][54]. - The revenue from the main division reached 40.1 billion CNY, with a significant contribution from emerging businesses, particularly passenger vehicle seating, which generated 6.55 billion CNY [19][54].