Baosight(600845) 国投证券·2024-04-07 16:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 51.23 CNY, based on a dynamic price-to-earnings ratio of 40 times for 2024 [4]. Core Insights - The company reported a slight decline in revenue for 2023, with total revenue of 12.916 billion CNY, down 1.78% year-on-year, while net profit increased by 16.82% to 2.554 billion CNY [2][3]. - The company has signed a significant contract with Guangxi Hongwang for a cold-rolled project, utilizing its latest domestic PLC products, expected to commence production in March 2025 [2][6]. - The company has shown notable improvements in profitability across its three main business lines, with gross margins increasing significantly [3]. - The company is actively enhancing its capabilities in industrial software, robotics, and AI, aiming to establish new growth drivers [6][9]. Financial Performance Summary - In 2023, the software development and engineering services generated revenue of 9.322 billion CNY with a gross margin of 32.16%, an increase of 3.45 percentage points year-on-year [3]. - The outsourcing services generated revenue of 3.491 billion CNY with a gross margin of 50.26%, up 4.22 percentage points year-on-year [3]. - The system integration segment had revenue of 93 million CNY and a gross margin of 11.09%, reflecting a 1.61 percentage point increase year-on-year [3]. - The company expects revenue growth to reach 14.467 billion CNY in 2024, with net profit projected at 3.079 billion CNY [9][11]. Future Outlook - The company is focusing on the development and promotion of its PLC products and has established a digital industrial research institute to enhance its industrial digital foundation [6]. - The company aims to continue its strategic expansion in industrial software and AI, leveraging its existing strengths in steel information and automation [8][9]. - The projected revenue for 2024-2026 is expected to grow to 14.467 billion CNY, 16.219 billion CNY, and 18.698 billion CNY respectively, with net profits anticipated to reach 3.079 billion CNY, 3.733 billion CNY, and 4.356 billion CNY [9][11].