\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Event overview
On March 9, 2022, Shanghai Baosight Software Co.Ltd(600845) released the announcement of 2021 annual performance express, and the company achieved a total operating revenue of 11.759 billion yuan in 2021, with a year-on-year increase of 23.6%; The net profit attributable to the parent company was 1.819 billion yuan, a year-on-year increase of 39.9%, exceeding our previous expectations. In addition, on September 3, 2021, Shanghai Baosight Software Co.Ltd(600845) announced that it had completed the purchase of 75.73% equity of Pegasus Zhike, and Pegasus Zhike had become a holding subsidiary of Shanghai Baosight Software Co.Ltd(600845) holding. If we consider the consolidation of Pegasus Zhike in 2021, according to the disclosure of the performance express, after retroactive adjustment, the company's total operating revenue and net profit attributable to the parent company in 2021 will increase by 15.01% and 35.92% respectively under the same caliber.
The general trend of integration and upgrading of iron and steel industry has brought strong growth momentum to the company
1) the reorganization and integration of central enterprises in the field of iron and steel brings great opportunities to Baoxin. On January 19, the State Information Office held a press conference on the economic operation of central enterprises in 2021. Peng Huagang, Secretary General of the state owned assets supervision and Administration Commission of the State Council and spokesman, said: in 2021, Angang's restructuring of Benxi Iron and steel, Baowu's restructuring of TISCO and other projects were successfully implemented, and the restructuring and integration of iron and steel and other fields will be steadily promoted in the future. According to the State Council's iron and steel industry integration policy, by 2025, 60% - 70% of China's iron and steel industry will be concentrated in about 10 group enterprises. According to the data of the Ministry of industry and information technology, the CR10 share of the iron and steel industry was only 39.38% in 2020, so the industry concentration still has nearly doubled the growth space. The demand for informatization, intellectualization, unification and transparency, upgrading and transformation and payment ability have been continuously improved, creating a historic opportunity for the company.
2) the adjustment of classified quota of related party transactions shows that the downstream demand of the company is strong. On January 22, Shanghai Baosight Software Co.Ltd(600845) issued the announcement on adjusting the classification quota of daily connected transactions in 2021. The announcement showed that the actual amount of connected transactions between Shanghai Baosight Software Co.Ltd(600845) and the subsidiaries of the actual controller Baowu group would exceed the expected amount at the beginning of 2021 due to the increased demand for automation and informatization. We believe that Baowu group's accelerated M & A integration and smart manufacturing has brought huge demand for orders, which has greatly increased the income of the company's related parties in recent years. According to the company's announcement, the income from Shanghai Baosight Software Co.Ltd(600845) related party transactions in 2020 was 3.781 billion yuan, a year-on-year increase of 27.18%, with a record growth rate. It is expected that the proportion of related party transaction revenue in revenue will remain high in the next 3-5 years.
3) industrial software and industrial Internet help steel enterprises improve quality, reduce cost and increase efficiency. Through MES system and other production control industrial software, steel enterprises can use algorithms to combine the real-time product data in production and in stock, guide suppliers and inventory management, and form automatic, classified and full real-time advanced production scheduling functions around product orders, so as to improve capacity utilization. With the help of ERP system and other operation and management industrial software, iron and steel enterprises can realize the integration of material flow information (logistics) and financial capital information (capital flow), help enterprises improve capital operation level, establish efficient supply chain, optimize inventory, reduce cost, improve customer service level, and significantly improve enterprise operation efficiency. The industrial Internet will connect automation equipment and information resources with high digitization, promote steel enterprises to build a "cross space" interoperability and integration system of "one headquarters and multiple bases", and effectively improve the coordination ability after reorganization and integration.
The net profit attributable to the parent company exceeded expectations due to the change of business structure and the increase of gross profit margin
Baoxin soft's net profit attributable to its parent company in 2021 increased by 39.9% year-on-year respectively, exceeding expectations. We believe that the change of business structure is mainly responsible for the increase of gross profit margin. According to the third quarterly report of the company in 2021, the business development of Baowu group and the improvement of smart manufacturing demand in recent years have increased the revenue of automation, informatization and cloud services with high gross profit margin. In addition, the change in the policy of adding and deducting R & D expenses led to a year-on-year decrease in income tax expenses and an increase in the company's net profit.
Investment advice
We expect the company to achieve operating revenue of RMB 11.759147.36/18.616 billion and net profit attributable to parent company of RMB 1.819/22.86/2.933 billion in 2021 / 22 / 23 Shanghai Baosight Software Co.Ltd(600845) its own strength is excellent, and it is located in many high-quality tracks, with high visibility and strong certainty for future growth. Maintain the investment rating of Buy-A and give a six-month target price of 60 yuan, which is equivalent to 40 times the dynamic P / E ratio in 2022.
Risk warning: IDC cabinet construction, shelf availability and future demand are not as expected; The promotion of industrial Internet platform was less than expected.
