Baosight(SH:600845) KAIYUAN SECURITIES·2024-07-18 13:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected performance that will exceed the market by over 20% [5][12]. Core Insights - The company is positioned as a rare domestic leader in large PLC (Programmable Logic Controller) manufacturing, benefiting from the national push for domestic substitution in high-tech sectors [5]. - The company has developed over 200 core process algorithms over nearly a decade and launched its self-developed large PLC in July 2021, marking the beginning of domestic substitution in this market [5]. - The report forecasts the company's net profit attributable to shareholders for 2024-2026 to be 30.7 billion, 40.1 billion, and 52.9 billion yuan respectively, with corresponding P/E ratios of 29.2, 22.4, and 16.9 times [5]. Financial Summary - The company's revenue for 2024 is projected to be 14.083 billion yuan, with a year-over-year growth of 9.0% [8]. - The net profit for 2024 is expected to be 3.068 billion yuan, reflecting a year-over-year increase of 20.1% [8]. - The gross margin is anticipated to improve to 38.3% in 2024, with a net margin of 21.8% [8]. - The return on equity (ROE) is projected to reach 24.5% in 2024, increasing to 32.1% by 2026 [8]. Market Position and Strategy - The company is focusing on three main lines for domestic substitution: product development centered on large PLCs, expansion into state-owned enterprises, and global outreach with projects in Indonesia and plans for a subsidiary in Saudi Arabia [7]. - Recent government policies supporting digital and intelligent transformation are expected to boost demand for the company's domestic manufacturing products [6].