NBJF(603997) Changjiang Securities·2024-11-12 14:54Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a Q3 revenue of 5.9 billion yuan, representing a year-on-year increase of 7.2%, while the net profit attributable to shareholders was -590 million yuan, a significant decline of 915.6% year-on-year [2][3]. - The decline in net profit is attributed to short-term factors such as the sale of TMD LLC, but the company is expected to improve its profitability in the future as it reduces burdens and benefits from the rapid growth of its seating business [3][4]. - The company is positioned as a rising star in the domestic seating market, with strong order volumes and expected profitability from its passenger car seating projects [4]. Summary by Sections Financial Performance - In Q3, the company's gross margin was 14.1%, down 1.0 percentage points year-on-year and 0.3 percentage points quarter-on-quarter [3]. - The company incurred asset impairment losses of 250 million yuan and credit impairment losses of 20 million yuan in Q3, primarily due to losses from the sale of TMD LLC and provisions for bad debts [3]. - The projected net profits for 2024-2026 are -470 million yuan, 900 million yuan, and 1.33 billion yuan, respectively, with corresponding PE ratios of 17.3X and 11.7X for 2025-2026 [4]. Market Position - The company has a strong order backlog and is expected to see significant profit elasticity as overseas integration efforts yield results [4]. - The company is leveraging its production and R&D efficiency, along with high self-manufacturing rates, to penetrate global automotive markets [4].