Baosight(SH:600845) KAIYUAN SECURITIES·2024-03-29 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5][11] Core Views - The company has significantly improved its gross margin, dividend rate, and cash flow, with expectations of rapid growth in related party transactions [5][6] - Despite a slight decline in revenue of 1.78% year-on-year to 12.916 billion yuan in 2023, the company has optimized its business structure, leading to improved profitability metrics [5][6] - The company is positioned to benefit from the domestic replacement trend in large PLCs and industrial robots, with anticipated high growth in domestic orders [7] Financial Performance Summary - In 2023, the company's software development revenue was 9.322 billion yuan, with a gross margin increase of 3.45 percentage points to 32.16% [5] - The system integration business saw a revenue decline of 33.32% to 93 million yuan, but its gross margin improved by 1.61 percentage points to 11.09% [5] - The service outsourcing business achieved a revenue of 3.491 billion yuan, with a gross margin increase of 4.22 percentage points to 50.26% [5] - The overall gross margin for 2023 was 36.92%, up 3.88 percentage points year-on-year, while the net profit margin reached 20.22%, an increase of 3.1 percentage points [5][6] Cash Flow and Dividend Insights - The operating net cash flow in Q4 2023 grew by 101.3% year-on-year [6] - The total dividend amount for 2023 accounted for 94.13% of the net profit attributable to shareholders, a year-on-year increase of 20.85 percentage points [6] - The expected related party transaction amount for 2024 is 12.7 billion yuan, a 56.39% increase compared to the actual amount in 2023 [6] Future Earnings Projections - The forecast for net profit attributable to the parent company is adjusted to 3.020 billion yuan for 2024 and 3.830 billion yuan for 2025, with a new projection of 5.060 billion yuan for 2026 [5][6] - The current stock price corresponds to a price-to-earnings ratio of 30.2 for 2024, 23.8 for 2025, and 18.0 for 2026 [5][6]