Baolong Automotive(SH:603197) Huaan Securities·2025-12-03 12:18Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company's sensor business continues to grow rapidly, with a potential inflection point in performance expected. In the first three quarters of 2025, the company achieved revenue of 6.048 billion yuan, a year-on-year increase of 20.32%, while the net profit attributable to shareholders was 198 million yuan, a decrease of 0.95% year-on-year [5] - The third quarter of 2025 saw revenue of 2.098 billion yuan, a year-on-year increase of 13.85% and a quarter-on-quarter increase of 2.59%. However, the net profit attributable to shareholders was 63 million yuan, down 36.92% year-on-year but up 59.99% quarter-on-quarter [5] - The company's core business is experiencing strong growth, particularly in smart suspension, TPMS, and sensor businesses, which are driving overall growth. The company is also focusing on high-intensity R&D to achieve breakthroughs in core technology areas [7] Financial Performance Summary - For the third quarter of 2025, the gross margin was 21.34%, down 3.27 percentage points year-on-year but up 0.86 percentage points quarter-on-quarter. The net profit margin was 3.02%, up 0.41 percentage points year-on-year and up 2.30 percentage points quarter-on-quarter [6] - The company expects net profits attributable to shareholders for 2025-2027 to be 304 million, 467 million, and 557 million yuan, respectively, corresponding to P/E ratios of 25, 16, and 14 times [8] - The company is projected to achieve revenue of 70.25 billion yuan in 2024, with a year-on-year growth of 19.1%, and is expected to reach 87.77 billion yuan in 2025, with a growth rate of 24.9% [11]