Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - Kingsoft Corporation's Q2 2024 performance exceeded expectations with total revenue of 2.474 billion yuan, a year-on-year increase of 12.78% and a quarter-on-quarter increase of 15.77%. The net profit attributable to shareholders reached 393 million yuan, showing a significant year-on-year increase of 587.84% and a quarter-on-quarter increase of 38.23% [2][3] Summary by Sections Gaming Business - The gaming segment achieved revenue of 1.286 billion yuan in Q2 2024, reflecting a year-on-year growth of 19.89% and a quarter-on-quarter growth of 41.09%. The increase is primarily driven by the performance of games like "Dust White Zone" and "Jian Wang 3: Wujie," leading to an upward revision of the annual revenue guidance from a 10% year-on-year increase to over 20% [3][4] Office Business - The office segment generated revenue of 1.188 billion yuan in Q2 2024, with a year-on-year increase of 5.97% but a quarter-on-quarter decline of 3.07%. The growth in personal office subscriptions continues, with a total of 38.15 million paid users, up 15% year-on-year. The company has also upgraded its AI strategy, launching WPS AI 2.0, which includes new AI office assistants for personal and enterprise users [3][4] Financial Forecast and Valuation - The report has revised the EPS forecasts for 2024-2026 to 0.99, 1.13, and 1.40 yuan respectively, reflecting an increase from previous estimates. The corresponding P/E ratios at the current stock price are projected to be 19, 16, and 13 times [4][9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4]. Core Views - The gaming sector is entering a product upcycle, and the WPS B-end subscription is expected to return to growth, driving overall revenue recovery. The net profit forecasts for 2024-2026 have been raised to 1.228 billion, 1.412 billion, and 1.802 billion respectively, with year-on-year growth rates of 153.9%, 15.0%, and 27.6% [4][5]. - The company's Q2 2024 revenue reached 2.474 billion, a year-on-year increase of 12.8%, aligning with Bloomberg consensus expectations. The gaming business saw a significant recovery, with a year-on-year growth rate of 19.9% in Q2 2024, driven by the launch of "Jian Wang 3: Wujie" and contributions from "Chen Bai Jin Qu" [4][5]. - The B-end revenue decline in Q2 2024 led to a slowdown in WPS growth, but the B-end subscription business is expected to return to growth. The personal subscription revenue grew by 19.8%, while institutional subscription revenue declined by 2% due to a shift from annual to monthly payment models [4][5]. Financial Summary and Valuation Metrics - Revenue (in million) for 2024E is projected at 9,751, with a year-on-year growth of 14.3%. Net profit for 2024E is expected to be 1,228 million, reflecting a significant turnaround from a loss of 6,048 million in 2022 [5]. - The gross margin is projected to be 82.6% in 2024E, with a net margin of 12.6%. The return on equity (ROE) is expected to reach 6.22% in 2024E [5]. - The diluted EPS for 2024E is forecasted at 0.92, with corresponding P/E ratios of 20.9, 18.1, and 14.2 for 2024-2026 [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任 何責任。 Kingsoft Corporation Limited 金山軟件有限公司 （於開曼群島持續經營的有限公司） （股份代號：03888） （可換股債券代號：40210） 截至二零二四年六月三十日止三個月及六個月 業績公告 金山軟件有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬公司（「本 集團」或「金山」）截至二零二四年六月三十日止三個月及六個月之未經審計業績。該等 中期業績已由本公司審核委員會（「審核委員會」）審閱。 1 財務資料 簡明合併損益表 截至二零二四年六月三十日止三個月及六個月 | | | 截至六月三十日止三個月 | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | --- | --- | | | | 二零二四年 | 二零二三年 | 二零二四年 | 二零二三年 | | | | 人民幣千元 | 人民幣千元 | 人民幣千元 | 人民幣千 ...

2024年5月27日 公司研究 1Q24《尘白禁区》流水表现超预期，WPS AI 商业化开启 —— 金山软件（3888.HK）1Q24 业绩点评 要点 买入（维持） 当 前价：25.60港元 事件：公司发布1Q24业绩，实现收入21.37亿元，同比增长8%，环比下 滑7%；1Q24实现经营利润6.02亿元，同比增长31%，对应OP Margin提 升4.8pcts至28.2%，带动归母净利润提升至2.85亿元, 同比大涨48%。 作者 分析师：付天姿 WPS AI初步开启商业化，主要产品月活设备数突破6亿。1Q24办公业务实 执业证书编号：S0930517040002 现收入12.25亿元，同比增长17%，其中: 1) C端订阅营收同比增长25%至 021-52523692 7.35 亿元，主要受益于会员权益不断丰富、带动用户粘性和付费转化率的提 futz@ebscn.com 升，截至 3M24 公司主要办公产品月活设备数达 6.02 亿，同比增长 2.2%， 联系人：黄铮 其中WPS Office PC 版月活设备数达 2.7 亿，同比增长7.1%。2) B端订阅营 021-52523825 收同比增长 1 ...

2024 年 05 月 25 日 公司研究 评级：买入 (维持 ) 研究所： [Table_Title] 《剑网 》全平台版上线在即， 稳步开 3 WPS AI 证券分析师： 陈梦竹 S0350521090003 chenmz@ghzq.com.cn 证券分析师： 尹芮 S0350522110001 启商业化 yinr@ghzq.com.cn ——金山软件（ ） 财报点评 3888.HK 2024Q1 最近一年走势 事件 : 5月22日，公司公告2024Q1季报，实现营收21.37亿元（YoY+8.5%， QoQ-7.5%），营业利润6.02亿元，净利润5.22亿元，归母净利润2.85 亿元。 我们的观点：  1、主要财务指标分析：2024Q1 实现营业收入 21.37 亿元 （YoY+8.5%，QoQ-7.5%），其中办公软件及服务业务12.25亿元 相对恒生指数表现 2024/05/24 （YoY+16.5%，QoQ-4.7%），网络游戏及其他业务 9.12 亿元 表现 1M 3M 12M （YoY-0.8%，QoQ-11.0%）。毛利润 17.41 亿元（YoY+7.1%， 金山软件 -0.6% 17 ...

计算机/软件开发 公 司 研 金山软件（03888.HK） 游戏增速有望回升，WPS AI 商业化进展顺利 究 2024年05月24日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 日期 2024/5/23 证 书编号：S0790521110001 证书编号：S0790123080037  游戏业务增速有望于2024Q2回升，WPS AI进展顺利有利平台估值提升 港 当前股价(港元) 25.950 考虑到游戏业务增速超出我们此前预期，我们上调 2024-2026 净利润预测至 股 一年最高最低(港元) 35.150/18.400 公 9.23/11.66/15.83 亿元（前值 7.86/11.59/15.76 亿元），同比增速分别为 司 总市值(亿港元) 347.51 91.0%/26.3%/35.8%，对应2024-2026年摊薄后EPS 0.7/0.9/1.2元，当前股价对应 信 流通市值(亿港元) 347.51 息 2024-2026年34.3/27.2/20.0倍PE。游戏盈利改善、WPS ...

[Table_Page] 公告点评|软件与服务 证券研究报告 [【Table广_Title发] 计算机&海外】金山软件（03888.HK） [公Tab司le_评Inve级st] 买入 当前价格 25.95港元 《尘白禁区》超预期，关注 WPS AI 商业化 合理价值 38.73港元 前次评级 买入 [ 核Tab 心le_S 观umm 点ary ：] 报告日期 2024-05-24 ⚫ 公司披露24Q1业绩公告，游戏稳健、办公维持高增，盈利能力提升。 [相Tab对le_P市icQ场uote表] 现 收入同比+8.5%至21.37亿元，运营利润率同比+4.8pct至28.2%，归 母净利大幅增至2.85亿元，主要是销售费用率下降及金山云减亏。 40% 24% ⚫ 游戏：《剑网3》稳健，《尘白禁区》超预期。24Q1 收入同比-0.8%至 8% 9.12 亿元，《剑网 3》整体稳健；《尘白禁区》Q1 DAU 和流水环比显 -8%03/23 05/23 07/23 09/23 11/23 01/24 03/24 著增长，截至目前在iOS免费/畅销榜最高排到第2/4位，助力公司打 -24% 开二次元赛道。储备游戏：《剑网 ...

计算机/软件开发 公 司 研 金山软件（03888.HK） 游戏增速有望回升，WPS AI 商业化进展顺利 究 2024年05月24日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 日期 2024/5/23 证 书编号：S0790521110001 证书编号：S0790123080037  游戏业务增速有望于2024Q2回升，WPS AI进展顺利有利平台估值提升 港 当前股价(港元) 25.950 考虑到游戏业务增速超出我们此前预期，我们上调 2024-2026 净利润预测至 股 一年最高最低(港元) 35.150/18.400 公 9.23/11.66/15.83 亿元（前值 7.86/11.59/15.76 亿元），同比增速分别为 司 总市值(亿港元) 347.51 91.0%/26.3%/35.8%，对应2024-2026年摊薄后EPS 0.7/0.9/1.2元，当前股价对应 信 流通市值(亿港元) 347.51 息 2024-2026年34.3/27.2/20.0倍PE。游戏盈利改善、WPS ...

Financial Data and Key Metrics - Revenue for Q1 2024 reached RMB 2,137 million, a YoY increase of 8.45% and a QoQ decrease of 7.50% [2] - Net profit attributable to shareholders was RMB 285 million, a YoY increase of 47.95% and a QoQ increase of 38.52% [2] - Adjusted net profit attributable to shareholders (excluding share-based compensation costs) was RMB 329 million, compared to RMB 236 million in the same period last year and RMB 257 million in Q4 2023 [2] - Monthly active devices for the company's office software products reached 602 million, a YoY increase of 2.21% and a QoQ increase of 0.67% [2] Business Line Data and Key Metrics - Online games and other revenue was RMB 912 million, a YoY decrease of 0.78% and a QoQ decrease of 11.02%, accounting for 42.66% of total revenue [3] - Office software and services revenue was RMB 1,225 million, a YoY increase of 16.52% and a QoQ decrease of 4.69%, accounting for 57.34% of total revenue [3] - The growth in office software revenue was driven by domestic personal and institutional subscription services, as well as institutional licensing, partially offset by a decline in advertising revenue [3] Market Data and Key Metrics - The company's flagship game "JX3" maintained steady growth, while the mobile version "JX3: Beyond Boundaries" is expected to launch in June 2024, offering a multi-platform gaming experience [7] - The sci-fi mecha game "Xianji" received a license in March 2024 and is undergoing testing and optimization in both domestic and overseas markets [7] Company Strategy and Industry Competition - The company is focusing on its "multi-screen, cloud, content, collaboration, AI" strategy, with continuous investment in AI and collaboration product development [7] - WPS AI began initial commercialization in March, and the upgraded WPS 365 platform was launched in April, providing a comprehensive AI office solution [7] - The company remains confident in its competitive position against Microsoft's Copilot, citing strong user loyalty and a solid foundation in the domestic market [9] Management Commentary on Operating Environment and Future Outlook - The company achieved steady financial performance in Q1 2024, with operating profit reaching RMB 601.6 million, a YoY increase of 31% [7] - Management emphasized the importance of user feedback and long-term operational strategies, particularly in the gaming segment [8] - The company is optimistic about the growth potential of its AI-driven office solutions and expects further advancements in both C-end and B-end markets [8] Other Important Information - The company's gross margin for Q1 2024 was 81.46%, a YoY decrease of 1.04 percentage points and a QoQ decrease of 0.62 percentage points [4] - R&D expenses increased by 7.83% YoY to RMB 713 million, driven by continued investment in AI and collaboration products [4] - Sales and marketing expenses decreased by 25.59% YoY to RMB 261 million, primarily due to reduced promotional spending in the gaming segment [4] Q&A Summary Q1: Sustainability of "Chen Bai" and WPS AI progress - The company is confident in the sustained growth of "Chen Bai" due to its deep expertise in the niche market and has raised its full-year revenue guidance for the game [8] - WPS AI's C-end testing met expectations, and the company is focusing on model optimization and B-end integration with existing clients [8] Q2: Breakdown of gaming growth and share repurchase plans - "Chen Bai" is expected to contribute significantly to gaming revenue growth, while "JX3: Beyond Boundaries" will drive user base expansion [8] - The company has a share repurchase plan of up to HKD 1 billion, with flexibility based on market conditions [8] Q3: AI competition and cost impact - The company views the reduction in AI model costs as beneficial and is considering lowering membership fees for WPS AI [9] - Management is not concerned about competition from Microsoft's Copilot, citing strong user loyalty and a solid domestic market presence [9]

Investment Rating - The report upgrades the rating for Kingsoft Corporation (3888 HK) to **Buy** with a target price of HKD 30 00, implying a potential upside of 17 2% from the current price of HKD 25 60 [1][2][3] Core Views - **Q1 2024 Performance**: Kingsoft reported Q1 2024 revenue of RMB 2 14 billion, up 8% YoY but 4% below expectations Game revenue declined 1% YoY to RMB 910 million, while WPS revenue grew 17% YoY to RMB 1 23 billion Adjusted operating profit increased 27% YoY to RMB 678 million, 8% above expectations, driven by reduced game marketing expenses [1][2] - **Game Business**: The game segment saw stable performance with *JX Online 3* maintaining steady results and *Whiteout Survival* showing improved popularity and revenue The new version of *Whiteout Survival* launched in mid-April is expected to contribute ~15% to Q2 game revenue, with estimated revenue of RMB 100-200 million in the following 30 days [2] - **WPS Growth**: WPS revenue growth was driven by a 25% YoY increase in personal subscriptions and a 14% YoY increase in institutional subscriptions The launch of WPS 365, an AI-powered productivity platform, is expected to boost subscription revenue with AI-enabled services priced at double the traditional subscription rate [2] - **Future Outlook**: The report forecasts a 12% growth in game revenue for 2024, up from the previous estimate of 9%, supported by the upcoming launch of *JX Online 3: Infinite* in June 2024 and the potential of *Whiteout Survival* and *JX Online 3* cross-platform integration [2] Financial Projections - **Revenue and Profit**: The report slightly adjusts revenue forecasts and raises 2024 net profit estimates by 4% The target price is increased to HKD 30 00, based on a 13x 2024 P/E for the game business (up from 10x) and a 25x P/E for WPS [2] - **Valuation**: The valuation is supported by the expected double-digit growth in game revenue and the positive impact of *Whiteout Survival* on Q2 performance [2] Industry Context - The report highlights Kingsoft's position in the gaming and office software sectors, with a focus on the growth potential of its AI-powered WPS platform and the upcoming game releases [2][3]