There will be an inquiry by British Software, a listed company of Science and Technology Innovation Board, next Thursday (January 5).

British Software (688435): the company is a software company specializing in data replication, the main business is to provide customers with data replication-related software, software and hardware and software-related services. From 2019 to 2021, the company achieved operating income of 102 million yuan / 129 million yuan / 160 million yuan, YOY of 60.78%, 25.87%, 24.30%, and a compound annual growth rate of 36.00% for three years. The company realized a net profit of 18 million yuan / 41 million yuan / 34 million yuan, and the YOY was 293.20%, 122.70%, 16.41%, respectively, to turn losses into profits in 2019. In the latest reporting period, the company achieved operating income of 114 million yuan in the first three quarters of 2022, an increase of 33.59% over the same period last year, and a net profit of 6 million yuan, an increase of 60.61% over the same period last year. It is estimated that the net profit attributed to the owner of the parent company in 2022 is estimated to be about 34.3525 million yuan to 48.4869 million yuan, up 1.27% from the same period last year to 42.94%.

Investment highlights: 1. The company is one of the few independent and controllable data replication software manufacturers that meet the key links of domestic informatization, and ranks first in the market share of pure software for data replication and protection. The domestic data replication software industry as a whole started relatively late, and the company is one of the few software manufacturers in the domestic market that simultaneously master dynamic file byte level, database semantic level and volume layer block level replication technology. to meet the domestic information key links of independent, safe and controllable software manufacturers. The company is a leader in the field of pure software for data replication. According to IDC statistics, in the domestic pure software market for data replication and protection in 2021, the top five suppliers are Veritas, DELL, UK Software, Commvault and Huawei, with a market share of 16.0%, 13.1%, 10.2%, 8.5% and 8.3%, respectively, ranking first among domestic manufacturers. 2. The company has a strong advantage in the financial field, has created a number of benchmarking projects, and the products are widely used in the core business systems of downstream well-known customers. The company's products have been successfully applied to the core business systems of many domestic financial institutions. Representative customers include Industrial and Commercial Bank of China, Shanghai Clearing House, Haitong, Guotai Junan, Taiping Insurance, Guangfa Fund, Yongan Futures, East Securities Asset Management, Changan Trust and so on. And the company has created a number of benchmarking projects in the financial field, resulting in a good brand effect. Including, but not limited to, providing Industrial and Commercial Bank of China with products for real-time transmission of all kinds of data between multiple places and centers, working with ewhale's domestic financial database to provide corresponding solutions for the database pilot projects of Guiyang Agricultural and Commercial Bank and Guiyang Bank, and providing a special disaster recovery software system for Haitong's disaster recovery system of "two places and three centers". During the reporting period, the proportion of customer income from the financial industry to the main business income was 20.94%, 31.00%, 27.32% and 23.38%, respectively. The financial industry is the company's largest industry customer group. 3. The company has reached strategic cooperation with a number of well-known domestic information infrastructure enterprises; in the future, it plans to further launch a fully autonomous controllable backup all-in-one machine to strengthen domestic support. In 2018, the company jointly released a hybrid cloud disaster recovery solution with Huawei Cloud and applied it to the business systems of a number of overseas financial institutions. In 2020, the company provided technologies related to backup, disaster recovery and data replication for Xinhua III's disaster recovery all-in-one products. In addition, the company's strategic cooperation customers also include dawning, tide and so on. The company has obtained the compatibility certification of many domestic manufacturers in the fields of CPU, server, operating system and database, which reflects the wide adaptability of the company's products; on this basis, the company plans to develop a fully autonomous controllable backup integrated machine with British software and domestic technology from CPU, motherboard and other hardware to the operating system, so as to further strengthen the domestic support.

Comparison with listed companies in the same industry: the company mainly provides data replication software, all-in-one computers and software-related services; according to the similarity of product application fields and business models, select Beixin Source, an Heng Information and Qiming Star, which are both network information security and standardized products, as comparable listed companies, but we tend to think that the reference of the above companies is poor. From the perspective of comparable companies, the average revenue in 2021 was 2.294 billion yuan and the gross profit margin was 63.05%.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.