Baosight(SH:600845) ZHONGTAI SECURITIES·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the stock price compared to the benchmark index over the next 6 to 12 months [11]. Core Views - The company has shown significant improvement in profitability, with a historical high in operating performance. In Q4 2023, the company achieved a revenue of 4.097 billion yuan, a year-on-year decrease of 25.46% but a quarter-on-quarter increase of 30.43%. The net profit attributable to the parent company was 683 million yuan, a year-on-year increase of 3.98% [7]. - The company is actively expanding its industrial automation layout through the development of PLC products, benefiting from new industrialization opportunities. It has established a digital industrial research institute to enhance its capabilities in industrial automation [8]. - The company is increasing its investment in R&D, with 1.454 billion yuan allocated in 2023, accounting for 11.26% of revenue. This investment aims to strengthen its position in industrial software and artificial intelligence [8]. Financial Summary - The company reported a total revenue of 12.916 billion yuan in 2023, a year-on-year decrease of 1.78%. However, the net profit attributable to the parent company was 2.554 billion yuan, a year-on-year increase of 16.82% [6]. - The forecast for net profit from 2024 to 2026 is 3.146 billion yuan, 4.103 billion yuan, and 5.168 billion yuan, respectively, with EPS projected at 1.31 yuan, 1.71 yuan, and 2.15 yuan [9]. - The company’s gross margin improved to 36.92%, an increase of 3.89 percentage points year-on-year, with a net profit margin of 20.22%, up 3.1 percentage points year-on-year [7].