Baolong Automotive(SH:603197) Soochow Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][18]. Core Views - The company has secured multiple new orders from leading domestic brands, with a total lifecycle value exceeding RMB 1.6 billion for air suspension products [18]. - The air suspension market is expected to grow significantly, with the penetration rate projected to increase as domestic production rates rise [19]. Financial Forecasts - Revenue projections for 2023-2025 are set at RMB 63.47 billion, RMB 78.10 billion, and RMB 95.04 billion, representing year-on-year growth rates of 33%, 23%, and 22% respectively [3]. - Net profit forecasts for the same period are RMB 3.94 billion, RMB 5.70 billion, and RMB 7.26 billion, with growth rates of 84%, 45%, and 27% respectively [3]. - The latest diluted EPS is projected to be RMB 1.86, RMB 2.69, and RMB 3.43 for 2023, 2024, and 2025 [3]. Order and Capacity Expansion - The company plans to issue convertible bonds to raise up to RMB 1.4 billion to expand air suspension production capacity [2]. - In the first half of 2023, the company achieved a production capacity of 300,000 units for passenger car air suspension systems, with a utilization rate of 63.03% [2]. Market Position - The company is positioned as a leading player in the air suspension market, benefiting from strategic partnerships with new energy vehicle manufacturers [18]. - The penetration rate for air suspension in new energy vehicles is currently at 18.49%, indicating significant growth potential as the market matures [19].