Baolong Automotive(SH:603197) Donghai Securities·2024-11-01 08:00Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has a leading global market share in its mature business, with a robust order backlog in emerging sectors. The profit forecast remains unchanged, expecting net profits of 386 million yuan, 496 million yuan, and 647 million yuan for 2024-2026, with corresponding EPS of 1.82 yuan, 2.34 yuan, and 3.05 yuan, resulting in PE ratios of 21X, 16X, and 13X based on the closing price on October 31, 2024 [5] - The company plans to increase its investment in Shanghai Bobang to strengthen its cooperation in the air compressor sector. The air suspension business has established a strong market position in China, with ongoing expansions into electric control dampers and closed systems, enhancing the self-manufacturing rate of components [5] - The company has secured project approvals from various clients, including a well-known European OEM, marking a significant breakthrough in overseas expansion for its air suspension business [8][9] Financial Performance Summary - For Q3 2024, the company reported revenue of 1.843 billion yuan, a year-on-year increase of 20%, while net profit attributable to shareholders was 100 million yuan, a decrease of 35% year-on-year. For the first three quarters of 2024, total revenue reached 5.026 billion yuan, up 21% year-on-year, with a net profit of 249 million yuan, down 27% year-on-year [10] - The company's main revenue and profit figures for the years 2021 to 2026 are as follows: - Main revenue (million yuan): 3898 (2021), 4778 (2022), 5897 (2023), 7245 (2024E), 9298 (2025E), 11838 (2026E) - Net profit (million yuan): 268 (2021), 214 (2022), 379 (2023), 386 (2024E), 496 (2025E), 647 (2026E) - EPS (yuan): 1.27 (2021), 1.01 (2022), 1.79 (2023), 1.82 (2024E), 2.34 (2025E), 3.05 (2026E) [6][10]