\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Event: the company released its 2021 annual report. During the reporting period, the company achieved an operating revenue of 11.759 billion yuan, a year-on-year increase of 15.01%, and the net profit attributable to shareholders of listed companies was 1.819 billion yuan, a year-on-year increase of 35.92%, achieving steady growth.
The core competitiveness of "industrial Internet" and "new infrastructure" has been continuously strengthened. In the past 21 years, the company's operating revenue of software development and engineering services was 8.502 billion yuan, a year-on-year increase of 19.10%, the operating revenue of service outsourcing was 3.121 billion yuan, a year-on-year increase of 8.87%, and the operating revenue of system integration was 129 million yuan. The pace of merger and reorganization of iron and steel enterprises represented by China Baowu has been accelerating. The "carbon peak" and "carbon neutralization" policies have led to 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. Focusing on the strategic business directions such as industrial Internet, new generation information infrastructure and "neck" project, the company has accelerated the cultivation of capabilities, linked resources and expanded territory, and actively created new core competitiveness and business growth points while maintaining the steady development of stock business.
The gross profit margin increased significantly and the cost investment expanded steadily. The gross profit margin of software development and engineering services was 27.60%, a year-on-year increase of 3.88 PCT, and the gross profit margin of service outsourcing was 46.72%, a year-on-year increase of 3.68 PCT, driving the overall business to increase significantly year-on-year. The company's investment in various expenses expanded steadily, and the expense rate increased year-on-year. Among them, the company added Shanghai Dzh Limited(601519) manufacturing, industrial Internet and big data R & D investment, with R & D expenses of 1.290 billion yuan, a year-on-year increase of 29.60%, and 1441 R & D personnel; Sales expenses and administrative expenses increased by 21.57% and 25.36% respectively.
Investment suggestion: guided by the national strategy and the upgrading strategy of Baowu group, the company has made multi-dimensional investment in industrial Internet platform, big data center, products and other products, and its core competitiveness has been continuously strengthened. We predict that the net profit attributable to the parent company in 20222024 will be RMB 2.422/30.10/3.676 billion and PE will be 30 / 24 / 20x, maintaining the "buy" rating of the company.
Risk warning: IDC and the progress of putting on the shelves are not as expected; The progress of product and technology research and development is less than expected; The landing progress of industrial Internet demand was less than expected.
