Baoxin Software (600845) 2018 Annual Report Review: Smart Manufacturing + IDC Two-Wheel Drive Performance Continue

Baoxin Software (600845) 2018 Annual Report Review: “Smart Manufacturing + IDC” Two-Wheel Drive Performance Continue

I. Overview of the event The company’s revenue in 2018 was 54.

71 ppm, an increase of 14 in ten years.

56%, net profit attributable to mother 6.

69.5 billion, a 57-year increase of 57.


In the first quarter of 2019, the company’s revenue and net profit attributable to the mother were 13 respectively.

4.5 billion and 2.

01 billion, the annual growth rate was 32.

62% and 36.


The company intends to distribute cash dividends to all shareholders for every 10 shares3.

82 yuan (including tax), the capital reserve will be transferred to all shareholders by 3 shares for every 10 shares.

Second, the cost of analysis and judgment is well controlled, and the operating quality continues to improve. In 2018, the company’s sales expenses accounted for 2 of its revenue.

75%, the proportion of management expenses (including research and development expenses).

2%, the lowest level in the same period of nearly five years each year.

In the first quarter of 2019, the budget expenses accounted for the month-on-month ratio and continued to decline for many years, showing the company’s good cost control ability.

At the same time, the company’s IDC business revenue accounted for 25% in 2017.

86% increased to 30 in 2018.

88%, the gross profit margin of IDC business is significantly higher than other businesses, driving the company’s overall gross profit margin to increase.

The steel information business has developed steadily. The “Baowu merger” and multi-field expansion have brought important growth. The company ‘s major customers (such as Baosteel and other major iron and steel plants) have steadily released the informatization demand, and the “Baowu merger” has brought aboutLong-term increase.

At the same time, in many companies, the industry has made important progress: the company newly received external orders such as Valin Steel in 2018, and its income has been continuously enriched; relying on the demonstration effect of smart manufacturing in the steel industry, unmanned business has made breakthroughs in the nonferrous and discrete industries.

IDC’s business continues its high prosperity, actively expands production capacity, and improves profitability. The company’s “Baozhiyun” project has regional advantages, resources, and other advantages. The contract rate is high and the shelf space is considerable. The revenue is expected to maintain a high growth rate in the next two to three years.
According to the calculation of the company announcement, the total number of IDC cabinet signings of the company exceeds 20,000, and the “Baozhiyun” 无锡桑拿网 second and third phase signing rates are 100%, and the fourth phase signing rate is about 33%, and it is expected to further increase in the future.

According to the company’s disclosure, the listing rate of IDC business continued to rise in 2018, which is the foundation for stable growth and replacement of performance.

Multiple benefits such as falling electricity prices and additional investment are committed to improving profitability.

In August 2018, the company added additional investment to the fourth phase of the Baozhiyun project. According to the company’s calculations, the internal financial return on investment will increase by 5% after the change in the scale of project fundraising, and annual revenue and profit after tax will increase by 30% and 27%, respectively.
Completely, the government work report states that “the average industrial and commercial 佛山桑拿网 electricity price is further reduced by 10%”, and the cost of electricity is also the largest cost of the IDC center, accounting for about 60% of the total cost. Therefore, the decline in electricity prices is expected to improve the company’s profitability.

The national layout strategy of IDC business is actively promoted. The company plans to establish a joint venture with Wuhan Iron and Steel Group, Baodi Assets, and Wuhan Qingshan State-owned Assets. It plans to build 18,000 cabinets (approximately 67 of Baozhiyun cabinets) in 2019-2023.

2%), IDC capacity continues to expand.

As one of the leading companies in the field of intelligent manufacturing, intelligent steel has advantages. From the “Government Work Report” and a series of important documents, we can see that intelligent manufacturing is one of the current policy priorities.

The company is one of the leading companies in the field of intelligent manufacturing in China. It has successfully applied for the industrial Internet platform test project of the Ministry of Industry and Information Technology for the iron and steel industry, and was shortlisted in the Ministry of Industry and Information Technology’s “Recommended Directory of the First Batch of Intelligent Manufacturing System Solution Suppliers”.

In the fields of MES and cold rolling, the company can provide complete integrated solutions, which has certain advantages in market competition. It is expected to continue to benefit from the development of intelligent manufacturing in the future.

Third, investment advice The company’s steel informatization, IDC business continues to maintain a high degree of prosperity, and at the same time, the intelligent manufacturing field has certain advantages, which is expected to benefit from the favorable policies.

According to the annual report and the quarterly report, the company will be slightly adjusted for 2019?
EPS is 0 in 2021.

98, 1.

25 and 1.

54 yuan, the current corresponding PE is 32X, 25X and 21X.
According to Wind data, the company’s overall average assessment of 62X in the Wind intelligent manufacturing sector has a certain valuation advantage.
Maintain the “Recommended” level.

Fourth, risk warning: IDC business contracting rate and listing progress are less than expected, and the short-term spending of smart manufacturing business leads to higher costs.

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