Baoxin Software (600845): The demand for steel IT and IDC should be more concerned about long-term growth

Investment Highlights: Event: On August 19, the company announced its 2019 semi-annual report.

19H1 company achieved revenue of 26.

9.9 billion (+11.

86%), net profit attributable to mother4.

0.6 billion (+37.

28%), net of non-attributed net profit3.

8.5 billion (+46.


Looking at 19Q2 revenue 13 in a single quarter.

5.4 billion (-3.

18%), net profit attributable to mother 2.

0.4 billion (+38.


Opinion: The company’s revenue growth rate in the first half of 2019 was lower than market expectations, and the growth rate of net profit attributable to mothers was generally in line with expectations.

The company’s 19H1 revenue growth continued its 18-year annual report, with a growth rate of more than 10%, and Q2’s single-quarter revenue fell more than expected; H1 and Q2’s single-quarter net profit attributable to mothers increased by 37.

28%, 38.

16%深圳桑拿网. The reason for the optimistic growth rate over revenue is that the IDC business with higher gross profit margins is growing faster. Overlapping IDC sales are wholesale for large customers, and the sales and management expense ratio is reduced. Therefore, the overall gross profit margin and net profit margin are 18%. 27 at the end.

94%, 13.

03% increased to 32 in 19H1.

42%, 15.


19H1 software development business added value in ten years8.

68%, H1’s total revenue growth rate is partly affected by this, but the informationization of iron and steel, automation demand is still strong.

The initial growth rate of front-end software is the lack of manpower for implementation. From 2013 to 2018, the company’s technical staff size was relatively stable from 3,000 to 4,000, which was out of line with business growth.

There are too many internal and external orders for the company’s steel industry: the internal Baowu merger, the corresponding information / automation business incremental space after the acquisition of Maanshan Iron and Steel; external cross-industry penetration.

The simultaneous informationization of production management and automation will be important investment directions for industrial enterprises in the future. The company’s traditional main business has long-term stable demand.

IDC has maintained a normal pace of listing, and the service outsourcing (IDC + other) business in the first half of the year grew by 31% over the past ten years.

The company’s 2018 annual report shows that the scale of IDC cabinets is nearly 20,000. We expect that the fourth phase of Baozhiyun will be gradually listed in 2019.

As the fourth phase uses high-power cabinets for customers such as CPIC, about one, two, and three phases, the revenue and net profit of single cabinets will improve. It is estimated that the company will have 2 cabinets by the end of 2019.

About 50,000.

In the future, after the expansion of China’s Baowu scale, resources from various regions will be coordinated (such as Wuhan Iron and Steel, Meisteel and other places), Baoxin IDC business will be based in Shanghai’s core strengths, and radiate the country.

Continue to focus on the main business of steel informatization / automation and IDC, and ensure long-term growth at the demand side: (1) The rapid growth of steel informatization / automation is realized: the company’s software development business enjoys the bonus of Baowu expansion, while the fine production of the entire industryThe demand for ERP and MES is still urgent.

In June, the company acquired Wuhan Iron & Steel Information Technology Company’s Wuhan Information Technology subsidiary, Wuhan Iron and Steel Technology Co., Ltd., which will be implemented on a large scale after the addition of personnel. At the same time, regional synergy will be formed.

(2) IDC highlights the core advantages of first-tier cities: After cloud vendors have digested the stock throughput of 18-19 years, capital expenditures are expected to pick up in the next few quarters; IDC resources in first-tier cities are becoming scarce, and the company serves as ShanghaiFor manufacturers with core resource advantages, IDC planning and listing are expected to advance steadily.

Maintain 19/20/21 profit forecast and maintain “Buy” rating.

Due to the improvement in profit margin, the growth rate of non-net profit was in line with expectations, so the profit forecast was maintained unchanged, that is, 19/20/21 net profit was 8.

6 billion, diluted EPS is 0.



28 yuan, 19/20/21 company PE is 41/30/25, maintain “Buy” rating.

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