\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 845 Shanghai Baosight Software Co.Ltd(600845) )
Announcement summary: the company released the first quarterly report of 2022, achieving a revenue of 2.498 billion yuan, a year-on-year increase of 23.76%, a net profit attributable to the parent of 455 million yuan, a year-on-year increase of 12.68%, deducting a net profit not attributable to the parent of 441 million yuan, a year-on-year increase of 20.03%, and an operating net cash flow of 1.046 billion yuan, a year-on-year increase of 141.31%.
The core business trend of software informatization is good, and the impact of the epidemic in the first quarter is limited. The overall performance of the company maintained a steady growth trend in the first quarter, and achieved good growth after deducting non net profit. Continue to improve working capital management, and the sales cash yield is higher than that in the same period last year. In terms of business structure in 2021, the proportion of automation and information business increased, the automation business grew rapidly, and the comprehensive gross profit margin increased by 3.39 PCT to 32.52%. The comprehensive gross profit margin of 2022q1 is 32.42%, which is stable compared with that of last year, with a certain increase on a month on month basis, and the R & D expense rate is 8.53%. It continues to increase investment in Shanghai Dzh Limited(601519) manufacturing, industrial Internet, big data and other fields. The company integrated the group’s information assets, completed the acquisition of Pegasus Zhike under the same control in 2021, and announced that it plans to acquire TISCO Xinzi. Through integration, it is conducive to improving the regional market share, stabilizing the regional market and improving the customer experience. 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. The company expects the operating revenue from related party transactions to reach about 9.1 billion in 2022, a year-on-year increase of 38.61%. From the perspective of the data center industry in the first quarter, the epidemic and Internet platform remediation affected the delivery and shelves of IDC. The company’s data center business is located in the core area, and we expect the overall growth to be stable.
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. According to the company’s disclosure, the delivery of phase V of baozhiyun began. Baozhiyunluojing “supercomputing hub” project is included in the list of new data center projects supported by Shanghai Municipal Commission of economy and information technology in 2021. In addition to Shanghai, the company actively promotes the industrial layout around first tier cities, and data center projects will be gradually implemented in Xuanhua, Hebei, Taicang, Jiangsu, Nanjing, Hubei and Wuhan. Hebei Baoxin will rely on the sufficient industrial power and water resources in Xuanhua Iron and steel plant, comprehensively utilize the industrial land resources to form a scale effect, and Nanjing Baoxin will select the Meigang plant. Baoxin Wuhan IDC central area is planned in three stages. 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. Under the background of the East West calculation and the gradual tightening of energy consumption indicators in the East, 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. In terms of cloud computing, 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.
PLC made in China replaces the pioneer, and intellectualization extends to the field outside metallurgy. The company focuses on the optimization and upgrading of iron and steel intelligent manufacturing, and ranks first in the market share of MES, EMS, tandem cold rolling, operation and maintenance services and other products and services in the field of iron and steel. The company is the first batch of enterprises engaged in PLC in China. After years of research and development, the company released relevant products in July 2021. Its 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. At present, the global PLC market is dominated by European, American and Japanese manufacturers. According to PwC’s strategic data, Siemens accounted for 44.3% of China’s PLC market in 2020, and Siemens, Mitsubishi, Omron, Rockwell, Delta and Schneider accounted for more than 83%. According to Zhiyan consulting data, China’s PLC market will reach 10.28 billion in 2019. Under the background of intelligent manufacturing upgrading, the market scale will continue to grow and there is a broad space for domestic substitution. The company ranked 11th in the evaluation of the development effectiveness of cross industry and cross field industrial Internet platform by the Ministry of industry and information technology in 2021, up 2 places over the previous year. In the future, the company will continue to strengthen R & D, improve the comprehensive strength of products in combination with industrial Internet platform, and realize the industrialization of China’s high-end control system.
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 into the leader of the third-party data center. We expect the net profit of the company from 2022 to 2024 to be 2.268 billion / 2.907 billion / 3.53 billion, and EPS to 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’s delivery and launch progress is lower than expected; Risks caused by epidemic situation to production and operation
