\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Event summary
Shanghai Baosight Software Co.Ltd(600845) released its 2021 annual report on March 28, 2022. During the reporting period, the company achieved a total operating revenue of 11.759 billion yuan, a year-on-year increase of 15.01%; The total profit was 2.013 billion yuan, a year-on-year increase of 29.02%; The net profit attributable to the parent company was 1.819 billion yuan, a year-on-year increase of 35.92%; Realize the basic earnings per share of 1.216 yuan; The net interest rate is 16.23%.
During the reporting period, the company’s software development and engineering services achieved a revenue of about 8.502 billion yuan, a year-on-year increase of 19.10% and a gross profit margin of 27.60%; The service outsourcing business achieved a revenue of about 3.121 billion yuan, a year-on-year increase of 8.87% and a gross profit margin of 46.72%; System integration services achieved a revenue of about 129 million yuan, a year-on-year decrease of 39.40% and a gross profit margin of 9.77%.
Steel industry integration and upgrading, relying on Baowu to stimulate domestic demand
In 2021, the company’s software development and engineering services achieved a revenue of about 8.502 billion yuan, a year-on-year increase of 19.10% and a gross profit margin of 27.60%. As an information high-tech company under the central enterprise, the company has been deeply engaged in the steel sector for many years and provided technical support for the digital intelligence development of Baowu group through the independently developed industrial Internet platform. The business relationship between parent and subsidiary companies is high, and the company still accounts for a large proportion of the amount of related transactions of related subsidiaries. In 2021, the company’s related party transactions in related subsidiaries amounted to 2.555 billion yuan, with a year-on-year increase of 11.72%. The high boom steel cycle sector has driven the company’s performance growth.
At the same time, under the environment of steel enterprise restructuring led by the State Council, Baowu group has successfully completed the restructuring project of TISCO, provided the company with a large number of steel information order demand, and laid the foundation for the steady growth of the company’s revenue. In addition, in order to promote the healthy development of the iron and steel industry and fulfill the green mission of “carbon peak” and “carbon neutralization”, the company has planned the scheme of Carbon Asset Management System and carbon trading information platform, and established a “double carbon” innovation joint laboratory in cooperation with the industrial Research Institute of the Ministry of industry and information technology, which has effectively broken through the technology and business boundary by continuously optimizing the industrial Internet architecture system.
Break the current situation of “stuck neck” and comprehensively promote independent control
In July 2021, the company launched self-developed large-scale PLC products. By giving full play to the advantages of demand, products and services, the company comprehensively promoted the large-scale and industrialized development of domestic independent and controllable high-end control systems, and solved the “neck” technical problem of China’s industrial software; At the same time, the implementation plan of “10000 Siasun Robot&Automation Co.Ltd(300024) ” was launched to vigorously promote the development of Baoxin Siasun Robot&Automation Co.Ltd(300024) cloud platform, aiming to create an open and shared Siasun Robot&Automation Co.Ltd(300024) equipment ecosystem, open up Siasun Robot&Automation Co.Ltd(300024) upstream, middle and downstream industrial chains, and expand to other industrial fields; We predict that in the future, the company is expected to enter the first camp of Chinese PLC manufacturers and compete with overseas leading brands with high market share.
Break through the bottleneck and penetrate the PLC market, and IDC’s revenue is rising
In 2021, the company’s service outsourcing business (IDC) achieved a revenue of about 3.121 billion yuan, a year-on-year increase of 8.87% and a gross profit margin of 46.72%, far exceeding the industry average.
In October 2020, the company plans to purchase 75.73% equity of Pegasus Zhike held by Maanshan Iron and Steel Group, Maanshan Iron and steel investment, cornerstone fund, Suyan fund and Beijing Sifang by issuing A-share common shares and paying cash. In 2021, the net profit of Pegasus Zhike reached 848569 million yuan, which greatly promoted the coordinated development of the company’s IDC business. In addition, with the implementation of the policy of “counting from the east to the west”, the demand for industrial computing power limited by geography and resources will be released, which will provide greater demand increment for IDC market. In the future, the company will continue to expand the layout of IDC and promote the construction of Baozhi cloud nodes and the interconnection of cloud service nodes.
Investment suggestion: 2022 is the key period for the country to fully implement the 14th five year plan. The company adheres to the national strategy of serving the country, speeds up the research and development of mission products and comprehensively improves the intelligent industrialization. We predict that the operating revenue of the company from 2022 to 2024 will be 15.305, 19.704 and 24.899 billion yuan, the net profit attributable to the parent company will be 2.407, 2.774 and 3.409 billion yuan, the EPS will be 1.58, 1.82 and 2.24 yuan / share, and the corresponding PE will be 30, 26 and 21 times, maintaining the “recommended” rating.
Risk tip: the prosperity of the steel industry is lower than expected; Repeated covid-19 epidemic in China; The promotion effect of PLC products is less than expected; IDC demand increment is diverted by Western projects.
