\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Key investment points
Performance summary: the company achieved a revenue of 11.76 billion yuan in 2021, a year-on-year increase of 15.0%; The net profit attributable to the parent company was 1.82 billion yuan, a year-on-year increase of 35.9%.
The results meet expectations and maintain strong profitability. In 2021, the company achieved a revenue of 11.76 billion yuan, a year-on-year increase of 35.9%, with significant performance growth, mainly due to: (1) the acceleration of merger and reorganization of Baowu group and the significant increase of the company's software development revenue; (2) With the use of industrial Internet platform, IDC sector continued to raise the company's overall gross profit margin.
Policies boost the development of the industry and bring business increment to the group. Driven by the national supply side reform and other policies, the digital economy is booming. The proposal of national strategies such as "new infrastructure", "industrial chain security" and "independent control" has brought important development opportunities for the company, and the demand for industrial Internet and intelligent manufacturing continues to improve. The company relies on Baosteel Group and benefits from Baowu M & A and digital transformation. The company's software development business orders continue to increase, superimposed with excellent product technical strength, and the performance growth is highly deterministic.
Consolidate its own advantages and comprehensively promote the research and development of domestic high-end products. After years of development, the company has formed core competitive advantages in technological innovation, comprehensive integration and business construction. The company adheres to the R & D route and comprehensively improves its products and R & D capabilities in emerging technology fields such as industrial Internet, big data, cloud computing and. At the same time, as an information high-tech company and software provider under the central enterprise, the company responds to policies, actively assumes responsibilities, seizes the opportunities of industry development and domestic substitution, comprehensively promotes the research and development of high-end products, and constantly makes breakthroughs in domestic substitution of key core technologies and solving the difficult problem of "neck sticking" in the industry.
Break through the "neck" status quo of PLC industry and open up new growth space. Facing the extremely high threshold of large-scale PLC in the metallurgical industry, with its profound technical and experience advantages accumulated in its 40 year development history and the first release Bureau in PLC, the company has promoted the large-scale and industrialized development of domestic independent and controllable high-end control system and successfully solved the "neck" technical problem in the industry. In 2021, the company's service outsourcing business (IDC) revenue was about 3.12 billion yuan, with a year-on-year increase of 8.9% and a gross profit margin of 46.7%, far exceeding the industry average. IDC business has rich resource reserves in the core regions of the country, and will continue to expand the layout of IDC in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.53 yuan, 1.97 yuan and 2.51 yuan respectively, and the net profit attributable to the parent company will reach a compound growth rate of 28.1% in the next three years. Considering the company's extensive industrial layout, excellent product technical strength and high-quality customer resources, it is expected that the company's order volume will increase significantly in 2022. The company is valued at 45 times in 2022, corresponding to the target price of 68.85 yuan. It is covered for the first time and given a "buy" rating.
Risk warning: customer expansion is less than expected, order risk of key customers and other risks.
