Baosight(SH:600845) KAIYUAN SECURITIES·2024-07-11 01:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][12]. Core Views - The Shanghai government is promoting technological innovation and the development of smart vehicles, which is expected to benefit the company significantly [2]. - The demand for the company's Shanghai Baozhi Cloud Intelligent Computing Center is anticipated to increase due to the push for autonomous driving and smart vehicle applications [2]. - The company's projected net profits for 2024-2026 are estimated to be 3.07 billion, 4.01 billion, and 5.29 billion yuan respectively, with corresponding PE ratios of 28.2, 21.6, and 16.3 times [2]. Company Development - The company's domestic substitution strategy focuses on three main lines: product end, industry end, and globalization [3]. - Product End: The company is one of the few in China with proprietary large PLCs, gradually expanding into three-electric control systems, industrial robots, and AI models [3]. - Industry End: The company is starting to penetrate private steel enterprises and plans to expand into state-owned enterprises and other industries [3]. - Globalization: The company has launched a stainless steel cold-rolled project in Indonesia and plans to establish a subsidiary in Saudi Arabia [3]. Client Recognition - Hongwang Group, a major player in the stainless steel industry, has repeatedly utilized the company's domestic products, showcasing strong recognition of the company's capabilities [4]. Financial Forecast - The company's revenue is projected to grow from 12.916 billion yuan in 2023 to 20.38 billion yuan in 2026, with a year-on-year growth rate of 22.8% [5]. - The net profit is expected to increase from 2.554 billion yuan in 2023 to 5.294 billion yuan in 2026, reflecting a year-on-year growth rate of 32.1% [5]. - The gross margin is forecasted to improve from 36.9% in 2023 to 43.3% in 2026 [5].