\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Event overview
On March 28, 2022, Shanghai Baosight Software Co.Ltd(600845) issued the announcement of 2021. The company achieved a total operating revenue of 11.759 billion yuan in 2021, an increase of 15.01% year-on-year; The net profit attributable to the parent company was 1.819 billion yuan, a year-on-year increase of 35.92%; The net profit deducted from non parent company was RMB 1.718 billion, with a year-on-year increase of 38.95%. The overall performance of the company was in line with the express expectations previously disclosed.
A new round of “supply side reform” in the iron and steel industry has been launched
In 2021, the pace of merger and reorganization of iron and steel enterprises represented by China Baowu continued to accelerate, and the “carbon peak” and “carbon neutralization” policies led the industry to start a new round of “supply side reform”. The improvement of industry concentration and the pressure of energy conservation and emission reduction have not only improved the overall strength, operation level and payment ability of iron and steel enterprises, but also promoted the transformation needs of China’s iron and steel industry from automation to informatization and intelligence, and then to unified and transparent digital intelligence, which has brought huge growth power to Baoxin service Baowu, continuously improve the proportion of related party transactions, and then enable the whole iron and steel industry.
The field of industrial software continues to lead the industry and regional development
As a leading application solution and service provider in China’s industrial software industry, Baoxin focuses on steel, nonferrous metals, chemical and other industries, and takes multiple production control industrial software as the core to build a new “process control + digital intelligence” dual driven intelligent manufacturing solution; Based on the technical concept of operation and management industrial software, it provides characteristic products and SaaS services such as comprehensive office, group management and control, supply chain management, diversified manufacturing ERP, bulk e-commerce transactions, logistics and Industrial Finance in the field of enterprise governance and production services. On the other hand, the company actively complied with the industrial software policy guidance of Shanghai, and continued to improve the industrial software R & D and product supply capacity. In the sub business in 2021, the revenue growth of software development and engineering services was the highest, and the gross profit margin also increased by 3.88 percentage points.
Industrial Internet + IDC “new infrastructure” two wheel drive
Industrial Internet and IDC data center are two important components of “new infrastructure”. Baoxin has clearly established its development strategy as: to become a leading industrial Internet service provider in the field of industrial ecosystem by making platforms and services; Become a first-class industrial Internet technology company by making brands and industries. This shows that it attaches importance to the industrial Internet. In 2021, the company promoted the development of relevant components of industrial Internet platform as planned, and successively released data middle platform, business middle platform and artificial intelligence middle platform during the year; Plan and develop domestic SCADA software for distributed whole process of metallurgical industry, and form pilot application; Strengthen the support of industrial Internet platform for cross industry, cross space and cross man-machine interface interoperability and integration, and create intelligent manufacturing version 2.0 upgrade. In terms of data center, the company continued to deploy baozhiyun business nationwide in 2021, the construction of baozhiyun IDC phase V project in Shanghai was carried out smoothly, and the market promotion in Hebei, Nanjing, Wuhan and Ma’anshan was steadily promoted.
Break through PLC import dependence in the “neck” field
In July 2021, Baoxin released and launched its independently developed metallurgical production line PLC products in combination with its industrial Internet platform, giving full play to its demand advantages, product advantages and service advantages, and comprehensively promoting the large-scale and industrialized development of domestic independent controllable high-end control system. The research on large-scale PLC of the company began in 2010 and carried out research on steel rolling and high-speed control related technologies through school enterprise cooperation; In 2013, the company began to independently design PLC products and continuously improve the level of localization and independent control; In 2016, the company’s PLC products were successfully verified in the cooperation of single stand processor and continuous rolling mill. According to the company’s disclosure, redundant PLC is expected to be developed in the second half of this year, and cloud PLC is currently in the verification stage of relevant basic technologies.
Investment advice
We expect the company to realize operating revenue of RMB 147.04/184.90/23.025 billion and net profit attributable to parent company of RMB 2.362/30.19/3.912 billion in 2022 / 23 / 24 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 62.16 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.
