\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Company announcement: the company issued a performance express. In 2021, the company achieved a revenue of 11.759 billion yuan, a year-on-year increase of 15.01%, the net profit attributable to the parent company was 1.819 billion yuan, a year-on-year increase of 35.92%, the net profit deducting non recurring profits and losses attributable to shareholders of listed companies was 1.718 billion yuan, a year-on-year increase of 38.95%, and EPS was 1.22 yuan / share.
The annual performance slightly exceeded expectations, and the market share of software informatization continued to increase. The proportion of the company’s high gross profit business increased, and the change of R & D expense plus deduction policy led to the year-on-year decrease of the company’s income tax expense, and the annual net interest rate continued to increase. In a single quarter, 2021q4 achieved a revenue of 4.355 billion yuan, a year-on-year increase of 14.21%, and a net profit attributable to the parent company of 404 million yuan, a year-on-year increase of 21.69%. The revenue in a single quarter hit a new high in the early stage. In the fourth quarter, affected by product structure and other non recurring factors, it is generally the low point of the company’s quarterly profit margin in that year. The net profit margin of 2021q4 company increased year-on-year. In August 2021, the company completed the merger and acquisition of Pegasus Zhike under the same control, realized consolidation, and restated and adjusted the previous comparative consolidated statements. The continuous high growth of the company’s performance is mainly due to the promotion of the integration of Baowu group in 2021, the rapid growth of the demand for smart manufacturing and smart operation, the increase of the scale and proportion of the company’s business income such as automation, informatization and cloud service, which has become an important growth point of the company’s business profit. The data center business has developed steadily, Shanghai baozhiyun phase V has entered the delivery stage, and the data centers in Xuanhua, Taicang, Nanjing and Wuhan have made continuous progress.
The data center develops to the national market layout with point structure. In July 2021, the company again achieved the Shanghai energy consumption index, and baozhiyun phase V also entered the delivery stage, strengthening its scale advantage in Shanghai. In addition to Shanghai, data center projects in Xuanhua, Hebei, Taicang, Jiangsu, Nanjing, Wuhan, Hubei and other regions will be gradually implemented. Hebei Baoxin will rely on the sufficient industrial power and water resources in Xuanhua Iron and steel plant and comprehensively utilize the industrial land resources to form a scale effect. Nanjing Baoxin will build two buildings in Meigang plant, with a total of 7000 cabinets. Baoxin Wuhan IDC central area is planned in three stages. It aims to build 1800020A cabinets in 2023. After completion, it can become the largest single big data and cloud computing center in Central China. With the gradual implementation of the above projects, it will continue to promote the company to become a national data center operator. Under the background of the scarcity of land and the strict management of data in the East, it is expected that the company will gradually become the core data center with the advantages of sufficient energy consumption in the East and strict data management in the early stage.
PLC made in China replaces the pioneer, and intellectualization extends to the field outside metallurgy. The company focuses on the optimization and upgrading of iron and steel intelligent manufacturing, and ranks first in the market share of MES, EMS, tandem cold rolling, operation and maintenance services and other products and services in the field of iron and steel. The company is the first batch of enterprises engaged in PLC in China. After years of research and development, the company released relevant products in July 2021. Its performance indicators are comparable to the latest high-end series products of European and American manufacturers, and have been successfully verified in the multi stand tandem mill and high-speed processing line units with the highest control requirements in the metallurgical industry. At present, the global PLC market is dominated by European, American and Japanese manufacturers. According to PwC’s strategic data, Siemens accounted for 44.3% of China’s PLC market in 2020, and Siemens, Mitsubishi, Omron, Rockwell, Delta and Schneider accounted for more than 83%. According to Zhiyan consulting data, China’s PLC market will reach 10.28 billion in 2019. Under the background of intelligent manufacturing upgrading, it is expected to reach 16.03 billion by 2023, with broad domestic substitution space. The company ranked 11th in the evaluation of the development effectiveness of cross industry and cross field industrial Internet platform by the Ministry of industry and information technology in 2021, up 2 places over the previous year. In the future, the company will continue to strengthen R & D, improve the comprehensive strength of products in combination with industrial Internet platform, and realize the industrialization of China’s high-end control system.
Investment suggestion: Shanghai Baosight Software Co.Ltd(600845) is a leading enterprise in iron and steel informatization and intelligent manufacturing, helping China’s manufacturing industry to transform and upgrade, maintaining a high boom in software informatization and expanding the large PLC market. Relying on Baowu group’s scarce resource advantages and its own informatization ability, it has rapidly developed IDC business and become the leader of the third-party data center. The company’s performance continues to grow rapidly. Considering the consolidation of Pegasus Zhike and other factors, we expect the net profit of the company from 2021 to 2023 to be 1.827 billion / 2.365 billion / 3.021 billion, and the diluted EPS to be 1.20 yuan / 1.56 yuan / 1.99 yuan respectively, maintaining the “buy” investment rating.
Risk tip: the investment in information construction of iron and steel industry is lower than expected; IDC delivery and launch progress is lower than expected
