Baolong Automotive(SH:603197) Haitong Securities·2024-04-30 11:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Insights - The company has experienced significant growth in 2023, with revenue from air suspension, sensors, and TPMS increasing by 175%, 45%, and 29% year-on-year respectively. This growth is driven by the rising sales of vehicles priced above 300,000 yuan, improved cost-performance of air suspension systems, and increased consumer acceptance of these products [4][5] - The company is focusing on expanding its production capacity and developing new products in the areas of intelligent and lightweight technologies, with new facilities in Hefei and Shanghai set to enhance production capabilities [19] Financial Performance and Forecast - The company achieved a revenue of 5.897 billion yuan in 2023, a year-on-year increase of 23%, and a net profit of 379 million yuan, up 76.9% year-on-year. The forecast for revenue in 2024, 2025, and 2026 is 7.677 billion yuan, 9.516 billion yuan, and 11.269 billion yuan respectively, with corresponding net profits of 517 million yuan, 736 million yuan, and 942 million yuan [5][18] - The earnings per share (EPS) are projected to be 2.44 yuan in 2024, 3.47 yuan in 2025, and 4.44 yuan in 2026, with a reasonable price-to-earnings (PE) ratio estimated between 25 to 30 times, leading to a target price range of 60.96 to 73.16 yuan for 2024 [5][6] Growth Drivers - The increasing electronic integration in vehicles is expected to drive demand for various types of sensors, including pressure, optical, speed, position, and acceleration sensors, marking a high growth period for the company's sensing products [4] - The company is also expanding its global footprint with new production facilities in Hungary to scale up its sensor and air suspension business [19]