Baosight(SH:600845) Changjiang Securities·2024-07-29 06:01Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Insights - In the context of de-globalization, self-sufficiency is a core theme. As China's manufacturing industry evolves from expansion to enhancement, domestic industrial software companies like the report's subject are poised for significant growth opportunities. The company has developed its own large PLC after a decade of effort, achieving a breakthrough in the metallurgical industry and is now moving towards large-scale promotion [5][6]. - The company is expected to expand its product line (from PLC to three electric systems) and provide fully autonomous control system solutions, which will facilitate sustainable replacements in other process industries such as semiconductors and ports, leading to another leap in scale [5][6]. Summary by Sections Event Description - On July 18, 2024, the 20th Central Committee's Third Plenary Session emphasized the need to enhance the resilience of industrial and supply chains, focusing on building self-sufficient systems in key industries including industrial software [5]. Company Overview - The company is a leading provider of information and automation solutions in the steel industry, with strong internal growth potential and competitive capabilities in the market. It has successfully developed a large PLC and is now entering a phase of large-scale promotion [6]. Financial Projections - The company is projected to achieve net profits of 3.15 billion yuan, 3.96 billion yuan, and 5.12 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 29.3x, 23.3x, and 18.0x [6].