\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Events
The company released the performance express for 2021, realizing an operating revenue of 11.759 billion yuan, a year-on-year increase of 15.01%, and a net profit attributable to the parent company of 1.819 billion yuan, a year-on-year increase of 35.92%.
Brief comment
1. Baowu group has strong demand for smart manufacturing, and the company’s annual performance meets market expectations.
The company released the performance express for 2021, achieving an operating revenue of 11.759 billion yuan, a year-on-year increase of 15.01%, a net profit attributable to the parent of 1.819 billion yuan, a year-on-year increase of 35.92%, a deduction of non net profit of 1.718 billion yuan, a year-on-year increase of 38.95%, a net profit attributable to the parent of about 15.47%, a year-on-year increase of 13.67%, a year-on-year increase of 1.8 percentage points.
In 2021q4, the company achieved an operating revenue of 4.354 billion yuan, a year-on-year increase of about 14%, a net profit attributable to the parent of 404 million yuan, a year-on-year increase of about 22%, a net interest rate attributable to the parent of about 9.28%, 8.71% in the same period last year, an increase of 0.57 percentage points year-on-year.
In 2021, benefiting from the promotion of integration and integration of Baowu group, the demand for smart manufacturing and smart operation increased, the company’s business income such as automation, informatization and cloud services increased, and its performance achieved rapid growth, which was in line with market expectations.
2. The industrial Internet opens a new growth space for information business, and PLC can be replaced by domestic products.
Baowu iron and steel merged in 2016, and then successively completed the acquisition of Masteel, TISCO, Chongqing Iron and steel, Xingang, etc., with a production capacity of more than 100 million tons. It is expected that Shanghai Baosight Software Co.Ltd(600845) will complete the information transformation. Baosteel said that it will continue to carry out M & a integration in specific fields in the future, and strive to achieve 50% or higher market share in subdivided fields in line with the national strategic direction. In the context of carbon neutrality, it is necessary to improve the informatization and intelligence of the iron and steel industry to improve production efficiency and reduce carbon emissions. The informatization supplement of Baosteel’s newly acquired capacity and the informatization upgrading of stock capacity will continue, and the company’s informatization and automation business is expected to benefit in the long term.
On February 17, the company reached a comprehensive strategic cooperation with Tencent cloud, and will carry out joint exploration in the fields of industry basic cloud platform construction, industrial Internet development, innovative solution research and development, so as to promote the digital transformation and upgrading of manufacturing enterprises. The company continues to increase the construction of industrial Internet platform. After completing the capacity of automation equipment and MES, ERP and other information software, the application of industrial Internet platform will improve the information level of iron and steel industry again. As a core member unit, the company has led or participated in the preparation of industry standards and group standards related to the industrial Internet platform of the iron and steel industry. At present, the company has provided intelligent manufacturing planning services for many iron and steel enterprises, continuously expanded the external market share, accelerated the promotion in the fields of rail transit, smart Park, nonferrous metals, chemical industry and other fields, and newly signed projects have been implemented one after another. We believe that in the 14th five year plan for the development of digital economy and the 14th five year plan for the development of deep integration of industrialization and industrialization, it is clearly proposed that the application penetration rate of industrial Internet platform should reach 45% in 2025, an increase of 30.3pp compared with 2020. The industrial Internet platform xin3plat independently developed by the company has been continuously selected as the double cross platform selected by the Ministry of industry and information technology, As the first tier platform enterprise in China’s industrial Internet industry, the company’s related businesses may fully benefit from the accelerated development of Enterprise Cloud and industrial Internet platform applications in the future.
The company has continuously expanded its capability boundary in the field of intelligent manufacturing and released large-scale PLC products independently developed. Redundant PLC and cloud PLC products are in the verification and R & D stage. As the core component in the field of industrial control, PLC products, especially large PLC products, are highly dependent on foreign manufacturers in the Chinese market. At present, the company is developing and testing a large-scale redundant PLC control system for the smelting area. It is expected to complete the research and development in the second half of this year. Yunhua PLC is in the stage of relevant basic technology verification. In the future, it will achieve comprehensive coverage in the fields of traditional PLC, DCS and MC series operation control, and continuously expand its R & D and manufacturing capacity in the fields of industrial software and industrial control system, Solve the “neck sticking” problem in more industrial fields. In recent years, Baowu group has a strong demand for smart manufacturing, which has become the main driving force for the development of relevant businesses of the company. On this basis, the company continues to expand its technical capacity. The scale of PLC products in the Chinese market exceeds 10 billion yuan, with strong substitution demand, which is expected to become a new growth point of the company’s business.
3. The project of “counting from the east to the west” was launched, and the scarcity of resources in the core area was further improved.
Recently, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration jointly issued a notice again, agreeing to start the construction of National Computing hub nodes in Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters, It marks the completion of the overall layout design of the national integrated big data center system, and the official and comprehensive start of the “counting from the east to the west” project. We believe that “counting from the east to the west”, as the supply side reform of IDC industry, will have a far-reaching impact on the future IDC market pattern. In the future, the IDC increment in hot areas of stock is expected to be very limited and the scarcity will be further strengthened.
In 2020, the company completed the delivery of baozhiyun IDC phase IV Building 3 project. By the end of 2020, the number of physical cabinets of baozhiyun IDC phase I to phase IV projects is expected to exceed 25000. At the same time, the company actively promoted the construction of baozhiyun Luojing base, Meishan base and other projects. After the completion of the project, more than 17000 physical cabinets will be added. In 2020, the company started the construction of baozhiyun IDC phase V project. While continuously consolidating the Shanghai base, the company will orderly carry out the reserve of core regional resources. In addition to the implementation of Xuanhua resources, the company will continue to carry out the market expansion of bases such as Nanjing, Wuhan and Ma’anshan. In terms of cloud computing service upgrading, the “cloud NETCORE” one + platform has been put into operation, Continue to promote the construction of Baozhi cloud nodes and the interconnection of cloud service nodes, and accelerate the national layout.
4. Investment suggestions: the company is in a leading position in the industry, its business development continues to improve, and maintains the “overweight” rating.
The company is in a leading position in the fields of IDC and industrial Internet, with rich reserves of resources in IDC core areas. Relying on the needs of strategic customers, the company actively carries out industrial layout, rapidly improves the business scale of smart manufacturing and smart city, and horizontally expands to various industries. The future performance is expected to grow rapidly. We estimate that the operating revenue of the company from 2022 to 2023 will be 15.865 billion yuan and 20.784 billion yuan respectively, with year-on-year growth rates of 34.92% and 31.01% respectively, and the net profit attributable to the parent company will be 2.326 billion yuan and 3.029 billion yuan respectively, with year-on-year growth rates of 27.88% and 30.22% respectively. The current market value (considering B shares) corresponding to PE is 31x and 24x respectively, maintaining the “overweight” rating.
5. Prompt of project delivery risk; The power on progress of the delivered IDC project is less than expected; The demand for steel digitization is less than expected; The expansion of industrial Internet business customers is less than expected.
