Baolong Automotive(SH:603197) Donghai Securities·2024-05-08 03:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has achieved rapid growth in its annual performance, with significant expansion in overseas markets and a strong focus on new business development [1][10] - The company's mature businesses continue to grow steadily, while new businesses are experiencing substantial increases in revenue [10][11] - The company has received multiple project approvals from global automotive manufacturers, enhancing its market presence [1][3] Summary by Relevant Sections Financial Performance - In 2023, the company reported revenue of 58.97 billion yuan, a year-on-year increase of 23%, and a net profit attributable to shareholders of 3.79 billion yuan, up 77% year-on-year [25] - The gross profit margin for 2023 was 27.40%, with a slight increase of 0.60 percentage points year-on-year [3] - For Q1 2024, the company achieved revenue of 14.83 billion yuan, a 25% increase year-on-year, but net profit decreased by 27% to 0.68 billion yuan [25] Business Segments - The TPMS and related products generated sales of 1.911 billion yuan, a 29% increase, while new businesses like air suspension and sensors saw revenue growth of 175% and 45%, respectively [10][11] - The company has established a European R&D and manufacturing center in Hungary to enhance local production capabilities [1][3] Future Outlook - The company expects net profits for 2024-2026 to be 4.94 billion yuan, 6.74 billion yuan, and 8.59 billion yuan, respectively, with corresponding EPS of 2.33 yuan, 3.18 yuan, and 4.05 yuan [11] - The report indicates that the company is well-positioned to benefit from the increasing demand for air suspension systems and has a robust order book [18]