Baosight(SH:600845) Changjiang Securities·2025-04-10 13:14Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 13.644 billion yuan for 2024, representing a year-on-year growth of 5.64%. However, the net profit attributable to shareholders decreased by 11.28% to 2.265 billion yuan, and the net profit after deducting non-recurring gains and losses fell by 8.91% to 2.198 billion yuan. The net cash flow from operating activities also declined by 35.94% to 1.671 billion yuan [2][5] - The short-term industry pressure and the group's contraction in actions may delay revenue realization, but the long-term potential and certainty of promoting large and medium-sized PLCs within the Baowu system remain optimistic. The expected net profits for 2025-2027 are projected to be 2.4 billion yuan, 2.54 billion yuan, and 2.72 billion yuan, with corresponding growth rates of 5.7%, 6.0%, and 7.1%, and PE ratios of 32.9x, 31.0x, and 29.0x respectively [2][5] Summary by Sections Revenue Performance - The company experienced a revenue growth of 6% for the entire year of 2024, while Q4 revenue declined by 5.11%. The software development and engineering services segment generated 9.91 billion yuan, up 6% year-on-year, while the outsourcing services segment brought in 3.66 billion yuan, up 5%. However, the system integration segment saw a significant decline of 30% to 0.07 billion yuan [11] - The revenue from actual transactions with Baowu Group was 6.92 billion yuan, down 5% year-on-year, which is significantly lower than the expected value in the 2024 report [11] Profitability Analysis - The company's gross margin for 2024 was 34.8%, a decrease of 2.2 percentage points year-on-year. The gross margins for software development and engineering services, and outsourcing services were 31.1% and 44.9%, respectively [11] - The company managed to optimize expenses, with sales, management, and R&D expense ratios at 1.9%, 13.6%, and 10.7%, respectively, showing slight year-on-year reductions [11] Cash Flow Situation - The operating cash flow for 2024 was 1.671 billion yuan, a decline of 36% year-on-year, primarily due to the deteriorating profitability of downstream customers affecting payment schedules [11] Business Development - The company is actively developing AI and robotics, responding to the group's strategy to promote intelligent transformation in the steel industry. The IDC business is expected to enter a new round of construction cycles, with a 47% year-on-year increase in ongoing projects [11]