Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report emphasizes the importance of the upcoming launch of the game "解限机" and the company's focus on AI, collaboration, and internationalization in its office software segment [1][8] - The company is expected to maintain steady growth in its dual business segments, with a positive outlook on new game categories and the continued development of AI capabilities in office software [8] Financial Performance Summary - For 2023, total revenue is projected at 8,547 million, with a year-on-year growth of 11.74% - The net profit attributable to the parent company is expected to be 483.46 million, reflecting a significant year-on-year increase of 107.99% - Earnings per share (EPS) for 2023 is estimated at 0.35 yuan, with a price-to-earnings (P/E) ratio of 93.52 [1] Revenue and Profit Forecast - The company forecasts total revenue of 10,318 million for 2024, with a year-on-year growth of 20.91% - The net profit attributable to the parent company is projected to reach 1,551.61 million in 2024, representing a year-on-year increase of 220.94% - EPS is expected to rise to 1.11 yuan in 2024, with a P/E ratio of 29.14 [1][9] Business Segments Overview - The gaming segment reported revenue of 10.37 billion in Q1 2025, with a year-on-year growth of 13.71% - The office software segment generated revenue of 13.01 billion in Q1 2025, with a year-on-year increase of 6.21% [8] - The report highlights the company's strategy to enhance AI user engagement and expand its international presence through localized operations [8] Research and Development Investment - The company has increased its R&D expenses to support AI and new game category development, with R&D costs rising by 16.14% year-on-year [8][9] - The report indicates a commitment to continuous investment in R&D to drive innovation and growth in both gaming and office software sectors [8]

Core Viewpoint - CICC maintains its revenue and net profit forecasts for Kingsoft (03888) for 2025 and 2026, with a target price of HKD 50, indicating a 39% upside potential based on a 2025 P/E ratio of 24.9x [1] Group 1: Office Business - The office business experienced a year-on-year revenue growth of 6%, driven by WPS personal and WPS 365 services, but saw a quarter-on-quarter decline of 13% due to disruptions from new procurement processes for domestic software [2] - As of March 2025, WPS Office's global monthly active devices reached 647 million, with a year-on-year increase of 8%, and the PC version had 301 million monthly active devices, up 11% year-on-year [2] - The management emphasized a core strategy of "AI + collaboration + overseas" for the office business, with a focus on leveraging the user base accumulated in overseas markets since 2018 [2] Group 2: Gaming Business - The gaming business reported a year-on-year revenue increase of 14%, mainly due to contributions from "Jian Wang 3" and the anime game "Chen Bai Jin Qu," but experienced a quarter-on-quarter decline of 20% due to seasonal factors [3] - Upcoming new games include the sci-fi mech game "Jie Xian Ji," expected to launch in summer 2025, and the sequel to the "Jian Xia Qing Yuan" series, which will have a full platform public test on May 29 [3] - Future strategies for the gaming business include adhering to a principle of quality, diversifying game genres beyond martial arts, and exploring international markets [3] Group 3: Financial Performance - In Q1, the operating profit margin was 25.7%, down 2.4 percentage points year-on-year and 13.9 percentage points quarter-on-quarter, primarily due to increased R&D investments in AI and new games [4] - The net profit margin was 12.1%, reflecting a year-on-year decline of 1.2 percentage points and a quarter-on-quarter decline of 4.3 percentage points, mainly due to the drop in operating profit margin [4]

Group 1 - The core point of the news is the upcoming announcement of the game "Limit Breaker" by Kingsoft, expected to be officially scheduled in early June, which is anticipated to significantly boost the company's revenue and profits if it performs well in the market [1] - Kingsoft has maintained a steady development trend in its gaming business, and "Limit Breaker" is a key project with high market expectations [1] Group 2 - CD Projekt RED reported that its classic game "The Witcher 3: Wild Hunt" has surpassed 60 million copies sold, showcasing the company's strong game operation capabilities [2] - The continued sales growth of "The Witcher 3" and the success of the "Cyberpunk 2077: Phantom Liberty" expansion pack have enhanced investor confidence in CD Projekt RED's future profitability [2] - The steady progress of new projects like "The Witcher 4" indicates significant growth potential for the company [2] Group 3 - The domestic game "Functional Heroes," developed by Guangzhou Egg Culture, is set to launch on May 30, featuring unique gameplay and creative elements that have garnered widespread attention [3] - The game’s vertical screen, one-handed operation is designed to cater to players' fragmented time, potentially increasing its competitiveness in the market [3] - If "Functional Heroes" can quickly accumulate a large user base and establish a good reputation post-launch, it will enhance brand awareness [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted from HKD 50.00 to HKD 46.00, indicating a potential upside of 27.6% from the current price of HKD 36.05 [4][2]. Core Insights - The company's Q1 performance was impacted by seasonal factors and increased R&D expenditures, particularly in AI and new game categories. Game revenue saw a quarter-on-quarter decline primarily due to seasonal decreases in monetization updates for "Jian Wang 3," while WPS revenue also fell due to procurement process impacts [2][8]. - New game launches are anticipated to stabilize revenue in the second half of the year, with titles like "Jie Xian Ji" expected to launch in summer and "Jian Xia Qian Yuan: Zero" by the end of May [2][8]. - Adjustments to profit forecasts for 2025-2027 were made, reflecting changes in the valuation contribution from Kingsoft Cloud due to its declining market value [2][3]. Financial Performance Summary - **Revenue Projections**: - 2025E: RMB 11,184 million (down 4% from previous forecast) - 2026E: RMB 12,189 million (down 5%) - 2027E: RMB 13,486 million (down 5%) [3][12] - **Game and Other Revenue**: - 2025E: RMB 5,327 million (down 4%) - 2026E: RMB 5,354 million (down 8%) - 2027E: RMB 5,484 million (down 8%) [3][12] - **WPS Revenue**: - 2025E: RMB 5,857 million (down 3%) - 2026E: RMB 6,836 million (down 3%) - 2027E: RMB 8,002 million (down 3%) [3][12] - **Gross Profit**: - 2025E: RMB 9,281 million (up 6%) - 2026E: RMB 10,098 million (up 3%) - 2027E: RMB 11,204 million (up 14%) [3][12] - **Adjusted Net Profit**: - 2025E: RMB 2,724 million (down 1%) - 2026E: RMB 2,957 million (down 4%) - 2027E: RMB 3,461 million (down 3%) [3][12] Market Data - The company's market capitalization is approximately HKD 50,233.87 million, with a 52-week high of HKD 46.90 and a low of HKD 20.10. The average daily trading volume is 13.72 million shares, and the year-to-date change is 7.13% [6][12].

Investment Rating - The investment rating for the company is "Buy" with a target price adjusted from HKD 50.00 to HKD 46.00, indicating a potential upside of 27.6% from the current price of HKD 36.05 [4][2]. Core Insights - The company's Q1 performance was impacted by seasonal factors and increased R&D expenditures, particularly in AI and new game categories. Game revenue saw a quarter-on-quarter decline primarily due to seasonal decreases in monetization updates for "Jian Wang 3," while WPS revenue also fell due to procurement process changes. New game launches are expected to stabilize revenue in the second half of the year [2][8]. - Adjustments to profit forecasts for 2025-2027 were made, reflecting changes in the valuation contribution from Kingsoft Cloud due to its market value decline [2][3]. Financial Performance Summary - **Revenue Projections**: - 2025E: RMB 11,184 million (down 4% from previous forecast) - 2026E: RMB 12,189 million (down 5%) - 2027E: RMB 13,486 million (down 5%) [3][12]. - **Game and Other Revenue**: - 2025E: RMB 5,327 million (down 4%) - 2026E: RMB 5,354 million (down 8%) - 2027E: RMB 5,484 million (down 8%) [3]. - **WPS Revenue**: - 2025E: RMB 5,857 million (down 3%) - 2026E: RMB 6,836 million (down 3%) - 2027E: RMB 8,002 million (down 3%) [3]. - **Gross Profit**: - 2025E: RMB 9,281 million (up 6%) - 2026E: RMB 10,098 million (up 3%) - 2027E: RMB 11,204 million (up 14%) [3]. - **Adjusted Net Profit**: - 2025E: RMB 2,724 million (down 1%) - 2026E: RMB 2,957 million (down 4%) - 2027E: RMB 3,461 million (down 3%) [3]. Market Data - The company's market capitalization is approximately HKD 50,233.87 million, with a 52-week high of HKD 46.90 and a low of HKD 20.10. The average daily trading volume is 13.72 million shares, and the year-to-date change is +7.13% [6][12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the focus on the upcoming launch of the game "解限机" and the company's emphasis on AI, collaboration, and internationalization in its office software business [1][8] - The company achieved a total revenue of 2.338 billion yuan in Q1 2025, representing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment showed stable operations with expectations for the performance of "解限机" upon its launch, while the office software segment is seeing growth driven by WPS personal and WPS 365 services [8] Financial Performance Summary - Total revenue projections for the company are as follows: - 2023: 8.547 billion yuan - 2024: 10.318 billion yuan (up 20.91% YoY) - 2025: 11.669 billion yuan (up 13.09% YoY) - 2026: 13.149 billion yuan (up 12.68% YoY) - 2027: 14.721 billion yuan (up 11.96% YoY) [1] - Net profit attributable to the parent company is projected as follows: - 2023: 483.46 million yuan - 2024: 1,551.61 million yuan (up 220.94% YoY) - 2025: 1,866.88 million yuan (up 20.32% YoY) - 2026: 2,303.83 million yuan (up 23.41% YoY) - 2027: 2,734.62 million yuan (up 18.70% YoY) [1] - The report maintains previous earnings forecasts, with expected EPS for 2025-2027 being 1.33, 1.65, and 1.95 yuan respectively, corresponding to current P/E ratios of 25, 20, and 17 times [1][8]

证券研究报告·海外公司点评·软件服务(HS) 金山软件（03888.HK） 2025Q1 业绩报点评：关注《解限机》上线进 展，办公聚焦 AI、协作和国际化 买入（维持） | [Table_EPS] 盈利预测与估值 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 8,547 | 10,318 | 11,669 | 13,149 | 14,721 | | 同比(%) | 11.74 | 20.91 | 13.09 | 12.68 | 11.96 | | 归母净利润（百万元） | 483.46 | 1,551.61 | 1,866.88 | 2,303.83 | 2,734.62 | | 同比(%) | 107.99 | 220.94 | 20.32 | 23.41 | 18.70 | | EPS-最新摊薄（元/股） | 0.35 | 1.11 | 1.33 | 1.65 | 1.95 | | P/E（现价&最新摊薄） | 95.92 | 29.89 | 24.84 | 2 ...

金山软件（03888.HK） 2025Q1 业绩报点评：关注《解限机》上线进 展，办公聚焦 AI、协作和国际化 证券研究报告·海外公司点评·软件服务(HS) 买入（维持） | [Table_EPS] 盈利预测与估值 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 8,547 | 10,318 | 11,669 | 13,149 | 14,721 | | 同比(%) | 11.74 | 20.91 | 13.09 | 12.68 | 11.96 | | 归母净利润（百万元） | 483.46 | 1,551.61 | 1,866.88 | 2,303.83 | 2,734.62 | | 同比(%) | 107.99 | 220.94 | 20.32 | 23.41 | 18.70 | | EPS-最新摊薄（元/股） | 0.35 | 1.11 | 1.33 | 1.65 | 1.95 | | P/E（现价&最新摊薄） | 95.92 | 29.89 | 24.84 | 2 ...

网络游戏及其他业务收入10.4亿元，同比增长14%。游戏业务在精品化战略的指导下，聚焦于做深做透 经典剑侠情缘系列，并持续大力布局新赛道，拓展新品类。据金山软件首席执行官邹涛介绍，一季度， 《剑网3》通过内容更新与玩法焕新，持续巩固用户基本盘。二次元射击游戏《尘白禁区》凭借差异化 的内容定位与长线运营策略，保持用户活跃度与口碑稳定。科幻机甲游戏《解限机》计划于今年夏季上 线。该游戏于测试阶段吸引全球玩家与行业广泛关注，并一度跻身Steam全球愿望单排行榜第五名。剑 侠情缘经典续作《剑侠情缘零》亦将继承IP精髓计划于二季度上线。 展望未来，雷军表示，金山办公集团将持续聚焦AI、协作和国际化，保持研发投入，将新的技术转换 成务实的办公产品交付给用户。游戏业务将持续深化旗舰IP生态营运，并聚焦二次元、科幻等新赛道， 强化内容创新能力，为玩家提供更具沉浸感与差异化的高品质游戏体验。 5月28日，金山软件(03888.HK)公布了2025年第一季度业绩，公司实现良好开局，实现营收23.4亿元， 同比增长9%。母公司净利润2.84亿元，同比基本持平。 "公司一季度实现良好开局：金山办公集团继续以用户价值为核心，优化产品体 ...

Group 1 - The stock prices of Kingsoft-related companies in Hong Kong have declined significantly, with Kingsoft Cloud (03896.HK) dropping by 7.59% and Kingsoft Software (03888.HK) falling by 7.49% [1]