NBJF(603997) KAIYUAN SECURITIES·2024-11-04 05:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has seen a revenue increase of 6.07% year-on-year for the first three quarters of 2024, with total revenue reaching 169.06 billion yuan. However, it reported a net loss attributable to shareholders of 5.32 billion yuan due to the sale of its U.S. TMD business and integration costs from Grammer [3][4] - The sale of the U.S. TMD business is expected to incur a loss of 2.8 to 3.8 billion yuan, but it is anticipated to improve profitability in the long term by allowing the company to focus on its core business [4][5] - The company has secured 19 contracts for passenger car seats, indicating a strong order backlog and potential for revenue growth as production ramps up [5] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 59.00 billion yuan, a year-on-year increase of 7.20% and a quarter-on-quarter increase of 3.15%. The net loss for the quarter was 5.85 billion yuan, primarily due to the sale of TMD and increased expense ratios [4] - The company’s revenue for 2024 is projected to be 24.738 billion yuan, with a year-on-year growth of 14.7%. The net profit attributable to shareholders is expected to be -5.13 billion yuan for 2024, improving to 8.11 billion yuan in 2025 and 12.99 billion yuan in 2026 [6] Business Strategy - The company is focusing on its passenger car seat business, which is expected to grow significantly due to the integration of Grammer, enhancing its technology, brand, and customer resources [5] - The divestiture of the U.S. TMD business is part of a strategy to streamline operations and improve profitability, particularly in the Americas [5] Market Position - The company has established itself as a key supplier in the passenger car seat market, leveraging its service efficiency and brand strength to penetrate both new and traditional automotive manufacturers [5]