Baoxin Software (600845) Semi-annual Report Review: Performance Meets Expectations Cloud Computing Construction Demand Drives Continuous Growth of IDC Business

Baoxin Software (600845) Semi-annual Report Review: Performance Meets Expectations Cloud Computing Construction Demand Drives Continuous Growth of IDC Business

The performance was in line with expectations, and the net operating cash flow significantly improved. The company released its semi-annual report for 2019: Realizing revenue26.

99 ppm, an increase of 11 years.


Net profit attributable to mother 4.

0.6 million yuan, an increase of 37 in ten years.

28%, in line with market expectations.

In terms of business breakdown, software development and engineering services revenue was 17.

44 ppm, an increase of ten years8.

73%, mainly benefited from the recovery in demand of the steel information industry; service outsourcing revenue8.

89 ppm, an increase of 31 in ten years.

12%, mainly because the demand for data center construction drives the IDC listing rate to continue to rise; system integration revenue is 0.

59 ppm, an increase of 50 in ten years.


Net cash flows from operating activities increase by 49 per year.

10%, mainly due to the company’s sales scale and operating profit growth, net cash continued to increase.

Gross profit margin increased by an average of 3.

51pct, software development and system integration gross margin increased significantly in the first half of 2019, the company’s sales gross margin was 32.

42%, an increase of 3 per year.

51 points.

From the perspective of business structure, the gross profit margin of software development focusing on automation and informatization business fell and rose.

02%, system integration gross margin increased by 5 in ten years.

19%, the gross profit margin of service outsourcing business, mainly IDC business, further decreased1.


Driven by the demand for cloud computing construction, IDC business continues to gradually transform and upgrade to cloud computing through traditional IT architecture. Cloud computing construction promotes the strong growth of demand for IT infrastructure construction such as IDC, which benefits the company’s IDC business.

At present, the integration of Baozhiyun IDC Luojing regional security system project and Baozhiyun IDC Phase IV project in IDC business projects; the company also jointly established Wuhan Iron and Steel Group with Wuhan Iron & Steel Group, Baodi Assets and Qingshan State-owned Assets in early 2019.The data industry park is to create the largest single data center in central China, and the purpose is to promote the company’s IDC business 北京桑拿 from Shanghai to the whole country.

In our view, benefiting from the increased demand for cloud computing construction, the company’s IDC business is expected to continue to grow.

The acquisition of Wuhan Iron and Steel Technology Co., Ltd. expanded the scale of revenue and stabilized the leader of the steel information technology industry. The company acquired Wuhan Steel Technology Co., Ltd. in June 2019. The technology and high-quality people brought by it can cope with the increased demand for steel information technology; resource integration and business optimization allocation have decreasedThe cost problem has also improved the ability to deliver informatized services, the benefits have continued to expand, and the leading position in the steel informatization industry is solid.

Investment suggestion: The 北京养生会所 traditional IT architecture is upgraded to cloud computing, and the demand for IDC construction is increasing. We are optimistic that the company’s business will continue to grow.

The company’s EPS for 2019-2021 is expected to be 0.

94, 1.


37 yuan.

Maintain the “Recommended” level.

Risk reminder: IDC business progress is less than expected, and industry competition is intensifying