Investment Rating - The report maintains a "Buy" rating for Baolong Technology [2][5]. Core Views - The report expresses optimism about the overseas market prospects for Baolong Technology's intelligent suspension systems, despite the company's performance being under pressure in the first three quarters of 2025 [2][11]. Financial Summary - Total revenue for 2023 is projected at 5,897 million, with a growth rate of 23.4%. Revenue is expected to reach 7,025 million in 2024, 8,390 million in 2025, 9,903 million in 2026, and 11,541 million in 2027, with growth rates of 19.1%, 19.4%, 18.0%, and 16.5% respectively [4][12]. - Net profit attributable to shareholders is forecasted to be 379 million in 2023, decreasing to 303 million in 2024, then recovering to 343 million in 2025, 493 million in 2026, and 698 million in 2027, with respective growth rates of 76.9%, -20.1%, 13.4%, 43.5%, and 41.8% [4][12]. - Earnings per share (EPS) is expected to be 1.77 in 2023, dropping to 1.42 in 2024, and then rising to 1.61 in 2025, 2.31 in 2026, and 3.27 in 2027 [4][12]. Market Data - The target price for Baolong Technology is set at 44.98 yuan, with a current market capitalization of 8,042 million [5][6]. - The stock has traded within a range of 33.98 to 52.50 yuan over the past 52 weeks [6]. Strategic Developments - Baolong Technology has formed a strategic partnership with Weifu High-Tech to enhance its full active suspension systems, indicating a deepening focus on intelligent suspension technology [11]. - The company has secured multiple overseas contracts for its intelligent suspension products, including a significant contract for a high-end luxury SUV model [11].

Core Viewpoint - Baolong Technology's performance in the first three quarters of 2025 is under pressure, but the company is optimistic about the prospects of its intelligent suspension in overseas markets. The rating is maintained at "Buy" [1]. Financial Performance - Baolong Technology reported a revenue of 2.1 billion yuan in Q3 2025, representing a year-on-year increase of 14% and a quarter-on-quarter increase of 3% [2]. - The net profit attributable to shareholders in Q3 2025 was 60 million yuan, a year-on-year decrease of 37% but a quarter-on-quarter increase of 60% [2]. - The net profit margin stood at 3.5%, down 2.3 percentage points year-on-year and down 1.0 percentage point quarter-on-quarter [2]. Strategic Developments - Baolong Technology and Weifu High-Tech have formed a strong partnership to focus on fully active suspension systems, aiming to promote their widespread application in the automotive market [3]. - Baolong Technology has secured a product specification for intelligent suspension systems from a leading domestic high-end luxury SUV brand, with multiple overseas specifications also obtained [3]. - The company has entered trial production for electronic shock absorbers and is ramping up production for closed-loop air supply units, while also securing a specification for height sensors from a U.S. luxury electric vehicle brand [3].

Core Insights - Baolong Technology has secured project designations for wheel speed sensors and height sensors from leading domestic independent brands [1] - The wheel speed sensors will be mass-produced for 19 vehicle models by March 2026, while the height sensors will be mass-produced for 2 projects by December 2025 [1] - Both products have a lifecycle of 5 years [1]

Core Insights - Baolong Technology has secured a contract for the intelligent suspension system components for a high-end electric vehicle model from a well-known foreign EV startup, expanding on a previous contract for dual-chamber air spring electronic shock absorbers [2] - The total project lifecycle value of the intelligent suspension system exceeds 230 million yuan, with a lifecycle of 6 years and planned mass production in 2026 [2] - The closed air supply unit, developed in collaboration with partner Bost, features compact size, lightweight, low power consumption, and superior drying performance, along with excellent NVH performance and customizable development capabilities [2] - Baolong Technology has established an intelligent production line for closed air compressors at its Hefei park to meet the business development needs of the closed air supply unit [2] Additional Notes - In 2024, Baolong Technology secured its first overseas open air supply unit project in Europe, and this closed air supply unit marks its first overseas project [3]