Baosight(600845) 长江证券·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 12.916 billion yuan in 2023, a year-on-year decrease of 1.78%, while the net profit attributable to shareholders reached 2.554 billion yuan, an increase of 16.82% [3][4] - The decline in revenue is attributed to the company's optimization of its revenue structure, leading to the abandonment of low-margin and low-value-added businesses [3][4] - The company expects a significant increase in related transactions with Baowu Group, projecting 12.7 billion yuan in 2024, which represents a year-on-year growth of 56.38%, indicating a high demand within Baowu [3][4] Financial Performance - In 2023, the company achieved a gross profit margin of 36.92%, an increase of 3.88 percentage points compared to the previous year [3] - The revenue breakdown shows that software development and engineering services generated 9.322 billion yuan, a decline of 2.80%, while outsourcing services grew by 2.38% to 3.491 billion yuan [3] - The net cash flow from operating activities was 2.608 billion yuan, reflecting a year-on-year increase of 3.45% [3] Future Outlook - The company is expected to achieve net profits of 3.026 billion yuan, 4.167 billion yuan, and 5.833 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 29, 21, and 15 times [5][9] - The company is focusing on industrial software and artificial intelligence, enhancing its industrial internet platform and expanding into non-steel markets such as non-ferrous metals, chemicals, and new materials [4]