| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.56 | -7 |
| Intrinsic value (DCF) | 12.08 | -58 |
| Graham-Dodd Method | 7.46 | -74 |
| Graham Formula | 8.90 | -69 |
But'one Information Corporation is a unique Chinese technology company operating at the intersection of education and information technology services. Founded in 1994 and headquartered in Xi'an, China, the company maintains a dual business model that includes operating Xi'an Jiaotong University City College, offering 19 undergraduate majors across economics, public administration, electronic information, computer science, mechanical manufacturing, and English. Simultaneously, the company develops and promotes specialized software solutions, particularly in land and resources informationization, including land use planning applications, real estate registration management, e-government systems, and geological disaster monitoring platforms. This hybrid approach positions But'one in both the growing Chinese education technology market and the government digital transformation sector. The company's specialized middleware platforms and business management systems serve both educational and governmental clients, creating diversified revenue streams within China's expanding digital infrastructure landscape.
But'one Information presents a specialized investment case with both attractive qualities and notable risks. The company operates in two defensive sectors—education and government software—which may provide stability during economic downturns. With a market capitalization of approximately CNY 1.67 billion, modest revenue of CNY 287 million, and positive net income of CNY 32.8 million, the company demonstrates profitability in its niche markets. The low beta of 0.385 suggests lower volatility compared to the broader market. However, significant concerns include high capital expenditures (CNY -117 million) relative to revenue, substantial total debt of CNY 355 million compared to cash reserves of CNY 241 million, and no dividend distribution. The company's concentration in specific Chinese regional markets and specialized software verticals creates both competitive moats and customer concentration risks that require careful monitoring.
But'one Information Corporation occupies a unique competitive position through its dual education and specialized software business model. In the education sector, the company benefits from operating an actual university (Xi'an Jiaotong University City College), providing a stable revenue base and practical testing ground for its educational technology products. This vertical integration is uncommon among software companies and creates natural synergies between its educational operations and technology development. In the software segment, But'one has developed specialized expertise in land and resources informationization—a niche but essential government sector in China. The company's land use planning, real estate registration, and geological disaster monitoring systems serve critical government functions, creating high switching costs and regulatory barriers to entry. However, this specialization also limits market size and creates dependency on government procurement cycles and policies. The company's Broadcom business middleware platform and management systems face more direct competition from larger enterprise software providers. But'one's competitive advantage lies in its deep domain expertise in specific verticals rather than technological innovation, making it vulnerable to disruption from larger tech companies expanding into these specialized markets. The company's regional focus in Xi'an and surrounding areas provides local market knowledge but may limit national expansion opportunities against well-funded competitors.