Baolong Automotive(SH:603197) HUAXI Securities·2024-07-09 13:02Investment Rating - The report maintains a "Buy" rating for the company, predicting that the stock price will outperform the Shanghai Composite Index by 15% or more during the forecast period [29]. Core Viewpoints - The market perceives air suspension as a comfort product, but it also protects batteries, enhances handling, and reduces noise, making it a necessary trend under consumption upgrades and smart technology [44]. - The report estimates that the market space for air suspension assemblies will reach 23.1 billion yuan by 2025, and the market for CDC dampers will reach 31.5 billion yuan by 2030 [44]. - The company is expected to be the first domestic supplier to achieve mass production of both air springs and CDC dampers, indicating significant growth potential [52]. Company Overview - The company, founded in 1997, has undergone four development phases, with a focus on intelligent and lightweight components since 2009 [57][85]. - It has a balanced global layout with production bases and R&D centers in various countries, including the USA, Germany, and Hungary, employing over 5,600 people [46][58]. - The company has a rich customer base, providing products and services to over 2,000 clients across more than 50 countries and regions [58]. Financial Performance - The company's revenue for the air suspension business in 2023 was 701 million yuan, a year-on-year increase of 175%, while the sensor business revenue was 531 million yuan, up 45% year-on-year [69]. - Revenue projections for 2024, 2025, and 2026 are 7.5 billion yuan, 9.9 billion yuan, and 11.8 billion yuan, respectively, with net profits expected to be 450 million yuan, 690 million yuan, and 980 million yuan [22][68]. - The report indicates a continuous high investment in R&D, with a focus on improving operational efficiency and profitability [73][79]. Market Trends - The report highlights that the configuration rate of air suspension in new models is expected to decline due to price competition, but the technology's benefits will drive its adoption in the long term [44]. - The CDC dampers are currently dominated by foreign suppliers, presenting a significant opportunity for domestic alternatives [51].