Baosight(600845) 中泰证券·2024-06-21 01:30Investment Rating - The report maintains a "Buy" rating for Baoxin Software (600845 SH) [1] Core Views - Baoxin Software is a leading domestic industrial software company specializing in steel industry digitalization It benefits from industry consolidation capacity optimization and intelligent manufacturing which open up incremental space for informatization and automation transformation [7] - The company is accelerating its expansion into non-steel markets and has made breakthroughs in large-scale PLC and industrial robotics which are expected to become new growth drivers [7] - Baoxin Software is expected to achieve net profits of 3 146 billion yuan 3 942 billion yuan and 5 087 billion yuan in 2024 2025 and 2026 respectively with EPS of 1 09 yuan 1 37 yuan and 1 76 yuan [3] Financial Projections - Revenue is projected to grow by 22% 23% and 25% in 2024 2025 and 2026 respectively reaching 15 695 billion yuan 19 302 billion yuan and 24 170 billion yuan [1] - Net profit is expected to grow by 23% 25% and 29% in the same period [1] - The current stock price corresponds to a PE ratio of 30X 24X and 19X for 2024-2026 [8] Business Overview - Baoxin Software is a subsidiary of Baowu Group and has a comprehensive layout in informatization automation and robotics Its business covers industrial software automation robotics smart transportation and new-generation information infrastructure [13][14] - The company has a strong presence in the steel industry and is expanding into non-steel markets such as transportation non-ferrous metals pharmaceuticals and chemicals [19] - Baoxin Software has a rich product matrix in industrial software including MES ERP and PLC and has achieved significant breakthroughs in large-scale PLC and industrial robotics [19][20] Industry Trends - The domestic PLC market is expected to grow from 15 4 billion yuan in 2021 to 19 3 billion yuan in 2026 with a CAGR of 4 7% [34] - The industrial internet market is also growing rapidly with the domestic market size reaching 1 37 trillion yuan in 2023 and expected to continue expanding [43] - The domestic industrial software market is expected to grow steadily with a CAGR of 13 1% from 2012 to 2023 reaching 282 4 billion yuan in 2023 [28] Key Developments - Baoxin Software has signed contracts with Guangxi Hongwang and Gangdi Technology for the application of its self-developed PLC products [20] - The company is actively exploring new business models such as BOO and RaaS in the industrial robotics sector [2] - Baoxin Software is leveraging its resources in the IDC sector and is planning to expand its data center business with the development of AIGC [2]