Baoxin Software (600845) Annual Report 2018, First Quarterly Report 2019 Comments: 18-year operating performance hits record high IDC and information business continue to explode

This report reads: The 2018 annual report is in line with expectations, the first quarter of 2019’s performance exceeded market expectations, the IDC business continued to expand, and the information and automation business orders were abundant.

Investment Highlights: Maintain “Overweight” rating and raise TP to 39.

06 yuan.

The company achieved operating income of 54 in 2018.

700 million, an increase of 14 in ten years.

6%; net profit attributable to mother 6.

700 million, an annual increase of 57.

3%; the company intends to distribute a cash dividend of 3 per 10 shares.

82 yuan (including tax) and 3 additional shares, a total of 3 cash dividends will be distributed.

4 billion.

At the same time, the company released the first quarter report for 2019, and achieved net profit attributable to mothers in Q1 20192.

01 billion, an increase of 36 in ten years.

4%.

Taking into account the continuous increase in the company’s IDC cabinet racking rate, and the successful signing of redundant major projects in 2018, we have raised our profit forecast and expect the operating income to be 73 in 2019-2021.

5.7 billion (+4%) / 90.

7.4 billion (+6%) / 107.

8.6 billion, with a net profit of 8.

20 billion (+3%) / 10.

4.7 billion (+ 7%) / 12.

55 billion, EPS is 0.

93 yuan (+3%) / 1.

19 yuan (+7%) / 1.

43 yuan, raise the target price to 39.

06 yuan, corresponding to 42 times PE in 2019, maintain the “overweight” rating.

The scale of IDC business has continued to expand, and the rack shelf rate has continued to rise.

In 2018, the company’s IDC business accelerated its nationwide deployment, and a joint venture with Wuhan Iron & Steel Group and other companies established a big data industrial park to build the largest single data center in central China and strive to build an IDC industrial ecosystem.

At present, Baozhiyun has a total of 1.

750,000 cabinets are basically put into operation, and nearly 30,000 cabinets of Baozhiyun Phase 4 will also be launched one after another. It is estimated that the annual operating income and profit after tax will 苏州夜网论坛 reach 9 respectively.

500 million and 3.

100 million, financial internal rate of return (after tax) is 18.

59%.

Informatization and automation business successfully signed contracts to supplement major projects.

Relying on the demonstration effect of smart manufacturing in the steel industry, the company continues to increase unmanned business, robot application, cloud service application industrialization promotion and market expansion, breakthroughs in non-steel fields (discrete manufacturing, nonferrous metals, smart cities, etc.) and software informationizationAnd automation core orders accelerated landing.

Catalysts: New IDCs continue to be established in cities outside of Shanghai. Accelerated landing of informatization orders for non-steel industries. Risk reminder: IDC continuous indicator risks, IT new business development risks