Baoxin 24Q1: revenue yoy +34.44%, net profit to mother yoy +18.19%
Baoxin Software released a quarterly report. In Q1 2024, it achieved revenue of 3.391 billion yuan (yoy +34.44%); net profit of 590 million yuan (yoy +18.19%); deducted non-net profit of 586 million (yoy +20.31%). Maintaining the profit forecast, the company's 2024-2026 EPS is expected to be 1.32/1.65/2.08 yuan, respectively. Compared to the company's 24-year Wind, the average PE value is 27 times. In view of Baoxin's leading position and acceleration in the field of domestic large and medium-sized PLCs and industrial robots, the company was given 24E 40xPE, with a target price of 52.60 yuan (previous value of 51.29 yuan) to maintain a “purchase”.
Revenue grew rapidly, and gross margin declined due to changes in revenue structure. The company achieved rapid 24Q1 revenue growth, mainly due to the year-on-year increase in revenue from the automation and information technology business in the current period. The 24Q1 company's comprehensive gross margin was 32.68%, a year-on-year change of 7.58pct. We expect this is mainly due to an increase in the share of revenue from the automation business with a relatively low gross margin. In 24Q1, the company's sales/management/R&D expenses rate was 1.86%/2.87%/9.45%, -0.36/ -1.38/ -3.44pct year-on-year. Net operating cash flow of 470 million, yoy +24.58%.
In 2024, focus on the promotion of large-scale PLCs and robots developed by the company 1. Self-developed large-scale PLC: Since the company achieved full coverage of the cold rolling process of the entire factory in Hongwang, Hunan in 2022, the market expansion of the company's self-developed large-scale PLC market has accelerated. In '23, the company's self-developed PLC products were recognized and affirmed by Baosteel Co., Ltd., and contracts related to Baosin's PLC business are expected to grow rapidly in '24. According to the company's official WeChat account, on March 27, '24, Baoxin and Guangxi Hongwang 1550 Cold Rolling Turnkey Project officially signed a contract for the latest full-stack localized PLC products and a new automated digital industrial site DSF. 2. Robotics: In 23, the company improved its robot business capabilities in all aspects, built Baoluo demonstration production lines for related application scenarios; promoted large-scale robot access to the Baoluo Cloud platform, increased capital to hold Turing Robotics, and paid attention to the robot's product layout and deployment for 24 years.
Company development strategy: Localization of industrial software+robotic+AI, opening a new growth curve The company's future strategy mainly revolves around the two major directions of industrial software and artificial intelligence, opening a new growth curve.
On the one hand, strengthen the construction of an autonomous and controllable industrial software industry system, continue to promote in-depth iterative R&D and industrialization of PLC products, and complete industrial software commercialization and upgrading based on the industrial Internet platform to improve implementation efficiency; on the other hand, build an intelligent computing center, continue to develop large-scale models for the metallurgical industry, and create production-level AI application demonstration projects. Form an overall plan covering the upstream and downstream industrial chains of robot products, and carry out research on the application of humanoid robots in the steel industry.
Risk warning: Downstream demand is lower than expected, and product expansion is lower than expected.