On May 8, “Aerospace Software”, a company listed on the Science and Technology Innovation Board, asked for a quote.

Aerospace Software (688562): The company has built three major businesses, including independent software products (basic software, industrial software), information technology services (Jinshi informatization services, commercial confidential network cloud services, information-based operation and maintenance services), and information system integration (mainly for aerospace, party, government, and military fields). The company achieved operating income of 950 million yuan/1,502 million yuan/1,895 million yuan respectively in 2020 and 2022, YOY was -0.15%/58.13%/26.16% in that order, and the three-year compound annual revenue growth rate was 25.83%; achieving net profit of -24 million yuan/45 million yuan/60 million yuan, YOY was 60.66%/285.18%/33.03% in that order, and the company turned a loss into profit in 2021. According to preliminary forecasts, the company expects to achieve net profit of -1.01 million yuan to 3.0 million yuan in January-March 2023.

Investment highlights: 1. The company is one of the leading software and information service enterprises in the aerospace and party, government, and military fields in China. The company was one of the first information technology vendors in the country to participate in the technical research of the Xinchuang Project. It is a national team in the field of Xinchuang Engineering. As of the date the prospectus was signed, Aerospace Science and Technology Group held a total of 63.81% of the company's shares and was the controlling shareholder of the company. From an industry perspective, the Xinchuang industry is essential to solving China's information and network security, and the aerospace industry system, as one of the fields with the most complex system structure and the widest coverage of all industrial systems, is also a key field of information technology construction. Currently, the creative innovation industry is being opened up to domestic manufacturers by the Party, Government, and Army, so the domestic production rate in the party, government, and military fields has increased rapidly, benefiting from the use of space software supporting the informatization of the Aerospace Science and Technology Group. After years of development, the company has built three major businesses, including independent software products (basic software, industrial software), information technology services (financial intelligence services, commercial network cloud services, information-based operation and maintenance services), and information system integration (mainly for aerospace, party, government, and military fields), with complete software and informatization service capabilities. 2. The company's Shentong database is one of the domestic databases with the highest security level in the country. Currently, it has been widely recognized in the fields of aerospace, military industry, government affairs, etc., and industrialized applications have gradually begun to be realized in other fields. Unlike cloud database vendors that mainly adopt open source technology routes, the company's Shentong database has independent intellectual property rights for all core source codes. It has unique advantages in key specific fields involving national strategic security, such as aerospace, defense, and military industry. It has effectively supported a series of major complex national space model projects such as Mars exploration projects, lunar exploration projects, China manned space stations, global satellite navigation systems, etc.; and applications have gradually begun to be implemented in the energy, network management, telecommunications and finance industries. Typical projects include Guangdong Power Grid's integrated voltage and power quality platform project and national Internet response A central engineering system, China Unicom's nationwide centralized integrated settlement system, China Construction Bank's Yuelong Cloud data analysis platform project, etc. Furthermore, based on the Shentong database, the company is also focusing on expanding financial audit informatization services in the field of auditing vertical government supervision. Currently, the market share is 71.88%, ranking first domestically, further enriching the company's revenue sources.

Comparison of listed companies in the same industry: China Software, Taiji Co., Ltd., Wanda Information, and Zhongke Tongda were selected as comparable listed companies for aerospace software. Looking at the comparable companies mentioned above, the average revenue scale of comparable companies in 2022 was 5.964 billion yuan, the comparable PE-TTM was 63.52X, and the gross sales margin was 25.12%; in comparison, the company's revenue scale and gross margin level fell short of the average of peers.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.