\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Key investment points
Company announcement: the company released the annual report of 2021. During the accounting period, it acquired Pegasus Zhike and restated and adjusted the comparative consolidated statements in the early stage. The annual revenue was RMB 11.759 billion, with a year-on-year increase of 15.01% after adjustment, and the net profit attributable to the parent company was RMB 1.819 billion, with a year-on-year increase of 35.92% after adjustment. The net profit attributable to the parent company after deducting non recurring profits and losses was RMB 1.718 billion, with a year-on-year increase of 38.95% after adjustment. The net operating cash flow was 1.928 billion yuan, an increase of 25.68% year-on-year after adjustment. It is proposed to increase 3 shares for every 10 shares to all shareholders and distribute a dividend of 10 yuan (including tax).
The core business of software informatization grew rapidly and its profitability continued to improve. In terms of business, the revenue of software development and engineering services was 8.502 billion yuan, the revenue of service outsourcing (including IDC) was 3.121 billion yuan, and the revenue of system integration was 129 million yuan, with a year-on-year increase of 19.1% / 8.87% / – 39.4% respectively. The comprehensive gross profit margin was 32.52%, a year-on-year increase of 3.39 PCT, of which the gross profit margin of software development and engineering services was 27.60%, a year-on-year increase of 3.88 PCT, mainly due to the increase in the proportion of automation and information business, and the rapid growth of automation business. The gross profit margin of service outsourcing was 46.72%, with a year-on-year increase of 3.68 PCT, and the listing rate of IDC increased. In terms of expenses, the rates of sales / management / financial expenses were 1.75% / 2.81% / – 0.38% respectively, with a year-on-year increase of -0.01 / + 0.62 / + 0.25 PCT respectively. The sales expense ratio continued to be optimized. The management expense was RMB 330 million, with a year-on-year increase of 25.36%, of which the amortization of equity incentive cost increased by 54 million. In addition, under the influence of the epidemic in 2020, the company enjoyed special subsidies from Baowu group and national social security relief policies, resulting in a low base. The annual R & D expenditure was 1.29 billion yuan, with a year-on-year increase of 29.6%, and the R & D expenditure rate was 10.97%, with a year-on-year increase of one PCT, and continued to increase investment in Shanghai Dzh Limited(601519) manufacturing, industrial Internet and big data. The company further integrated the group’s information assets and completed the consolidation of Pegasus Zhike under the same control. The net profit of the target company in 2021 was 848569 million. In 2021, the revenue from providing labor services and selling goods in related party transactions between the company and related parties totaled 6.565 billion, a year-on-year increase of 40%.
China’s leader in intelligent manufacturing, enabling digital transformation in steel and other fields. The “double carbon” policy led to the opening of a new round of “supply side reform” and promoted the continuous growth of the demand for digital intelligence transformation of China’s iron and steel industry. Baowu Group continues to purchase and restructure, which will further bring the company’s new order demand. The company’s products and services in MES, EMS, tandem cold rolling, operation and maintenance services have the first market share in the field of iron and steel. At the same time, the company deeply implemented the strategies of independent and controllable core technology, new infrastructure and industrial chain security, promoted the development of relevant components of industrial Internet platform, and successively released data platform, business platform and artificial intelligence platform during the year. In July 2021, combined with its own industrial Internet platform, the company launched its independently developed PLC products, whose 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, so as to comprehensively promote the large-scale and industrialized development of domestic independent controllable high-end control and system. With the help of intelligent means, the company helps “carbon peak” and “carbon neutralization”, deeply studies the digital solutions and process equipment technology of energy conservation, environmental protection and resource utilization in the iron and steel industry, and develops intelligent systems, intelligent equipment and intelligent models conducive to energy conservation and emission reduction. In addition to the iron and steel field, the company has also deeply cultivated the intelligent transportation business and launched the smart subway “3 + 1” solution and smart hot metal transportation solution based on the industrial Internet system to meet the needs of the digital economy
Baozhiyun phase V began to be delivered gradually, and IDC was oriented to the national market. Following strategic customers, the company continued to promote the business layout of baozhiyun across the country. In 2021, the company obtained new energy consumption indicators in Shanghai. Phase V of baozhiyun gradually began to be delivered, constantly consolidating the scale advantage of Shanghai base. In addition to Jiangsu Xuancang, Wuhan and other first tier cities, the company will gradually promote the industrial layout of Jiangsu Xuancang, Wuhan and other surrounding cities. 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. The implementation of the above projects is expected to promote the company to become a national data center operator. In the context of the gradual tightening of energy consumption indicators in the East and the west, the management of non-compliance IDC is strengthened, the core cities have sufficient and stable power supply conditions and low land cost, and the large-scale, centralized and high-quality data center location will become a scarce advantageous resource. The data center assets arranged by the company in the early stage are expected to be revalued. In terms of cloud, baozhiyun has been upgraded to a multi node and distributed Cloud Architecture. The “cloud core” one + suite has realized the digital management of cloud services, network services and operation and maintenance services, and the national node layout has been further accelerated.
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. Considering the phased slowdown of Internet demand for IDC, we adjusted the profit forecast. It is estimated that the net profit of the company from 2022 to 2024 will be 2.268 billion / 2.907 billion / 3.53 billion (the original forecast from 2022 to 2023 was 2.365 billion and 3.021 billion), and the EPS will be 1.49 yuan / 1.91 yuan / 2.32 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
