\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Event: on March 8, 2022, the company issued the announcement of 2021 annual performance express, realizing a total operating revenue of RMB 11.759 billion in 2021, a year-on-year increase of 15.01% (after adjustment); The net profit attributable to shareholders of listed companies was 1.819 billion yuan, with a year-on-year increase of 35.92% (after adjustment), which was in line with market expectations.
The transformation of Baowu digital intelligence continues to advance, and the proportion of high gross profit business is expected to increase significantly. 1) Considering the acquisition of Pegasus Zhike in August 2021, the company restated and adjusted the comparative consolidated statements in the previous period. In terms of revenue, the company achieved an operating revenue of 11.759 billion yuan in 2021, with a year-on-year increase of 15.01% (after adjustment) and 23.54% (before adjustment); Q4 achieved an operating revenue of 4.354 billion yuan in a single quarter, with a year-on-year increase of about 2.8% (after adjustment), in line with market expectations. 2) Compared with the growth rate of about 35% year-on-year in the first half of 2021 (after adjustment), the growth rate of the company in the second half of the year slowed down slightly. The main reason may be that some businesses were confirmed more in the second half of last year, especially the intelligent business with relatively low gross profit, resulting in a relatively high base of last year. At the same time, in terms of gross profit, according to the previous financial report, the gross profit margin of Q3 was 65.41%, an increase of 5.18 percentage points compared with the same period last year. It is expected that it is mainly due to the further increase in the proportion of automation, informatization and cloud service revenue with high gross profit margin. 3) In terms of profit, during the reporting period, the company realized a net profit attributable to the parent company of 1.819 billion yuan, with a year-on-year increase of 35.92% (after adjustment) and 39.82% (before adjustment); Q4 achieved a net profit attributable to the parent company of 404 million yuan in a single quarter, with a year-on-year increase of about 12.4% (after adjustment), which is mainly due to the promotion of integration of Baowu group in 2021, the growth of demand for smart manufacturing and smart operation, and the increase of business income scale such as automation, informatization and cloud services.
The overall cost rate remained stable, and R & D investment continued to strengthen. 1) According to the previous financial report, the overall expense rate of the company remained stable in 2021q3. In a single quarter, the company’s sales expense ratio was 1.81%, an increase of 0.09 percentage points over the same period last year; The management fee increased by 13.0% over the same period of last year; The financial expense ratio was – 0.19%, an increase of 0.05 percentage points over the same period last year. 2) In 2021q3, the company’s R & D expenses were 306 million yuan, a year-on-year increase of 7.55%; Accounting for about 10.89% of operating revenue, an increase of 0.31 percentage points over the same period last year. It is expected that the company will continue to increase R & D investment in industrial Internet, smart manufacturing and other aspects.
The steel industry and the software industry will have more space to upgrade and lead the growth of IDC. 1) In recent years, the merger and reorganization of the iron and steel industry has been promoted, driving the expansion of the demand for iron and steel information transformation. China Baowu has successively absorbed Baosteel, WISCO, Maanshan Iron and steel, Bagang, Shaoguan Iron and steel, Chongqing Iron and steel, Hubei iron and steel, Taiyuan Iron and steel, Kunming Iron and steel, Shangang and other enterprises, and many iron and steel enterprises outside Baowu system have a lot of information transformation needs, which brings a lot of demand for the company’s intelligent manufacturing information business. 2) With its profound accumulation in the field of informatization and automation in the iron and steel industry, the company’s software business continues to expand from MES, EMS and ERP to PLC, and the industrial software product line is constantly enriched, opening a new growth pole of the industrial control industry. Among them, the PLC launched in July 2021 has excellent performance, deeply implements the national strategies of “industrial chain safety” and “independent control”, and faces China’s industrial control market space of nearly 200 billion a year. 3) In 2021h1, the balance of construction in progress of the company was 146 million yuan, with a year-on-year increase of 210.18%, mainly due to the construction expenditure of 102 million yuan for phase V of baozhiyun IDC; According to the announcement of Shanghai Economic and Information Technology Commission, in July 2021, the company won another 3000 cabinet indicators in Shanghai. With the successive delivery of phase V, it is expected to contribute more revenue increment to the company; At the same time, relying on the experience of Shanghai IDC, the company has officially opened the layout of IDC and cloud computing service capabilities across the country. With resource advantages and industry-leading power control level, IDC business is expected to usher in greater development space.
Maintain the “buy” rating. Adjust the profit forecast according to key assumptions and recent announcements. It is estimated that the company will realize revenue of RMB 11.759 billion, RMB 15.370 billion and RMB 19.921 billion from 2021 to 2023 (RMB 11.904 billion, RMB 15.566 billion and RMB 20.177 billion in the early stage); The net profit attributable to the parent company was RMB 1.819 billion, RMB 2.402 billion and RMB 3.118 billion (RMB 1.682 billion, RMB 2.157 billion and RMB 2.716 billion in the previous period).
Risk tips: IDC demand slowdown risk, IDC construction progress is less than expected, the domestic substitution process of industrial software is less than expected, the information demand decline risk of downstream industries such as iron and steel, which is greatly affected by the operation status of Baowu group
