Baosight(SH:600845) KAIYUAN SECURITIES·2024-07-21 07:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][12]. Core Views - The report highlights that recent government policies are significantly promoting equipment upgrades and digital transformation, which will drive the demand for the company's domestic manufacturing products [5]. - The company is positioned to benefit from the national emphasis on technological innovation and domestic substitution, particularly as a state-owned enterprise [6]. - The company is recognized as a leading domestic PLC provider, with a comprehensive layout in the domestic manufacturing industry chain, indicating potential for long-term growth in domestic substitution [7]. Financial Summary - The company's projected net profits for 2024, 2025, and 2026 are estimated to be 3.07 billion, 4.01 billion, and 5.29 billion yuan respectively, with corresponding P/E ratios of 30.0, 22.9, and 17.4 times [5]. - Revenue is expected to grow from 12.92 billion yuan in 2023 to 20.38 billion yuan in 2026, reflecting a compound annual growth rate (CAGR) of approximately 22.8% [8]. - The gross margin is projected to improve from 36.9% in 2023 to 43.3% in 2026, while the net profit margin is expected to increase from 19.8% to 26.0% over the same period [8].