Summary of Kingsoft Office (688111.SS) Earnings Call Company Overview - **Company**: Kingsoft Office - **Ticker**: 688111.SS - **Industry**: Technology, specifically software solutions Key Points Financial Performance - **4Q24 Results**: Revenue increased by 16% YoY to Rmb1,494 million, net income rose by 43% YoY to Rmb605 million, aligning with preliminary results [8][9] - **Operating Performance**: Operating profit (OP) was Rmb425 million, a 35% increase YoY, but missed estimates of Rmb518 million due to higher spending on WPS AI development [8][9] - **Opex Ratio**: Improved to 57% in 4Q24 from 60% in 4Q23, but higher than the expected 51% [8][9] User Growth and Product Development - **WPS AI Users**: Monthly Active Users (MAU) for WPS AI reached 19.7 million by the end of 2024, representing 47% of paying users and 3% of total WPS Office MAU [9][10] - **WPS 365 Growth**: Strong growth in WPS 365 for ToB clients, with a 149% YoY increase in revenues, while ToB WPS software revenues decreased by 9% YoY [8][9] - **Client Penetration**: Notable clients include CRRC, CR Group, and JiangXi Bank, indicating successful market penetration [9][10] Strategic Focus - **AI Strategy**: Management emphasizes deep integration of AI with traditional software functions, aiming to enhance user experience and reduce costs [9][10] - **AI Knowledge Hub**: Plans to release an AI knowledge hub for enterprise clients, providing a closed-loop solution for efficient data utilization [10] Future Outlook - **Revenue Projections**: Revenue expected to reach Rmb5,121 million in 2024, with continued growth projected for 2025-2027 [11] - **Target Price**: Maintained at Rmb491, with a target P/E multiple of 88x based on peer comparisons [14][16] Risks - **Key Risks**: Potential risks include slower-than-expected membership transitions, ToB customer adoption, competitive intensity, and AI monetization challenges [15] Additional Insights - **Market Position**: Despite increasing competition among LLM vendors, Kingsoft Office maintains a competitive edge due to its established office software and cost efficiency [8][9] - **Earnings Revision**: Opex ratios for 2025-2027 revised upwards due to increased R&D and selling expenses related to AI solutions [10][11] This summary encapsulates the critical financial metrics, strategic initiatives, and future outlook for Kingsoft Office, highlighting its position within the technology sector and the software industry.

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 313.42 and an industry rating of "Outperform" [1][4][6]. Core Insights - The company is expected to see steady growth in 2024, with significant revenue increases from WPS 365 and ongoing AI technology enhancements driving product upgrades [1][4]. - For 2024, the company reported revenue of RMB 5.121 billion, a year-on-year increase of 12.4%, and a net profit of RMB 1.645 billion, up 24.8% [4][8]. - The WPS 365 business achieved remarkable growth, with revenue reaching RMB 437 million, a year-on-year increase of 149.3% [9]. - The company is focusing on expanding its customer base, particularly in the government and enterprise sectors, while also enhancing its international business [9]. Financial Summary - Revenue projections for 2025-2027 are RMB 64.3 billion, RMB 77.2 billion, and RMB 91.1 billion, respectively, with net profits expected to be RMB 19.1 billion, RMB 24.1 billion, and RMB 27.9 billion [6][8]. - The earnings per share (EPS) are projected to be RMB 4.13, RMB 5.22, and RMB 6.02 for 2025, 2026, and 2027, respectively [6][8]. - The company’s R&D expenses for 2024 were RMB 1.696 billion, representing a 15.2% increase year-on-year, with a focus on AI technology as a key growth driver [9].

Investment Rating - The report maintains a "Buy" rating for the company [5][8]. Core Insights - The company achieved a revenue of 5.121 billion yuan in 2024, a year-on-year increase of 12.40%, and a net profit attributable to shareholders of 1.645 billion yuan, up 24.84%, aligning with market expectations [1]. - The company has adopted a new business segmentation for its 2024 annual report, categorizing revenues into WPS personal business, WPS 365 business, WPS software business, and other businesses [2]. - WPS 365 business revenue reached 437 million yuan, reflecting a remarkable year-on-year growth of 149.33%, driven by the integration of document, collaboration, and AI capabilities [3]. - The WPS personal business generated 3.283 billion yuan in revenue, with a 18.00% year-on-year growth, supported by an increase in active users [2]. Revenue Breakdown - WPS personal business revenue was 3.1 billion yuan domestically, with a total of 41.7 million annual paying users, a growth of 17.49% year-on-year [2]. - The WPS software business reported a revenue of 1.268 billion yuan, a decline of 8.56% year-on-year, as the company focuses on enterprise customer needs [4]. Financial Projections - The company expects to achieve revenues of 6.189 billion yuan, 7.532 billion yuan, and 9.214 billion yuan for the years 2025, 2026, and 2027 respectively, with net profits projected at 1.953 billion yuan, 2.369 billion yuan, and 2.901 billion yuan [5][7].

2025 年 03 月 25 日 金山办公(688111.SH) WPS 365 业务高增，AI 战略落地已见成效 事件概述 股价表现 近日，金山办公发布了《2024 年年度报告》。公司 2024 财年实现营 业收入 51.21 亿元，同比增长 12.4%；归母净利润 16.45 亿元，同比 增长 24.84%；扣非归母净利润为 15.56 亿元，同比增长 23.30%；经 营净现金流为 21.96 亿元，同比增长 6.71%。WPS Office PC 版国内 日活跃设备数已突破 1 亿，WPS AI 月度活跃用户数达 1968 万。 各业务线保持稳健增长，WPS 365 实现高增 根据年报披露：本报告期起，为更清晰展现公司核心产品经营态势和 发展方向，公司主营业务收入分类口径由商业模式分类转变为产品业 务分类。2024 财年，按照新的业务分类，①WPS 个人业务：收入 32.83 亿元，同比增长 18%。截至 2024 年 12 月 31 日，WPS Office 全球月 度活跃设备数 6.32 亿，同比增长 6.22%。其中，WPS Office PC 版月 度活跃设备数 2.91 亿，同比增长 9.8 ...

金山办公（688111.SH）公司点评 WPS 365 增速亮眼，AI 商业化潜力得到验证 2025 年 03 月 25 日 ➢ 事件：1）近期，金山办公发布 2024 年年报，公司 2024 年累计实现营业收 入 51.21 亿元，同比增长 12.40%；实现归母净利润 16.45 亿元，同比增长 24.84%。2）公司公开电话会解释公司调整业务披露口径及未来五年加强用 AI 改 造现有业务的战略规划。 ➢ 投资建议：金山办公个人订阅付费用户数与 ARUP 在 AI 赋能下有望持续增 长，同时 WPS 365 实现一站式 AI 办公增速亮眼，我们预测公司 2025-2027 年 收入分别为 61.09、72.95、87.17 亿元；EPS 分别为 4.12、5.19、6.26 元， 2025 年 3 月 24 日收盘价对应 PE 分别为 76X、60X、50X，维持"推荐"评级。 ➢ 风险提示：技术研发不及预期；行业竞争加剧。 [盈利预测与财务指标 Table_Forcast] | 项目/年度 | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- ...

证券研究报告 公司研究 [Table_ReportType] 点评报告 [Table_StockAndRank] 金山办公(688111.SH) 投资评级：买入 上次评级：买入 [Table_A 庞倩倩 uthor计算机] 行业首席分析师 执业编号：S1500522110006 邮 箱： pangqianqian@cindasc.com 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦 B座 邮编：100031 [Table_Title] WPS 365 营收高增，AI 应用持续落地 [Table_ReportDate] 2025 年 3 月 24 日 [Table_S 事件：金山办公 ummary]发布 2024 年年度报告，公司 2024 年实现营收 51.21 亿元， 同比增长 12.4%；实现归母净利润 16.45 亿元，同比增长 24.8%；实现扣非 净利润 15.56 亿元，同比增长 23.3%；实现经营性现金流净额 21.96 亿元， 同比增长 6.71%。公司毛利率为 85.14%，同比基本持平。单 2024Q4 来看， 公司实 ...

2025 年 03 月 23 日 公司点评 买入/维持 金山办公(688111) 目标价: 昨收盘:309.38 WPS 365 高速增长，AI 赋能打开成长空间 ◼ 走势比较 (50%) (34%) (18%) (2%) 14% 30% 24/3/22 24/6/2 24/8/13 24/10/24 25/1/4 25/3/17 ◼ 股票数据 | 总股本/流通(亿股) | 4.63/4.63 | | --- | --- | | 总市值/流通(亿元) | 1,431.42/1,43 | | | 1.42 | | 12 个月内最高/最低价 | 408.68/167.18 | | (元) | | 相关研究报告 <<机构订阅保持高增，WPS AI 商业化 落地可期>>--2023-08-24 <<订阅业务增速亮眼，AI 赋能打开成 长空间>>--2023-04-23 <<订阅业务持续高增，信创与 AI 驱 动长期发展>>--2023-03-24 证券分析师：曹佩 电话： E-MAIL：caopeisz@tpyzq.com 分析师登记编号：S1190520080001 证券分析师：王景宜 电话： E-MAIL：wan ...

Investment Rating - The report maintains a "Buy-A" rating for the company [1][8] Core Views - The company has shown strong growth in its WPS 365 business and is expected to accelerate the commercialization of its AI products [1][8] - The company achieved a revenue of 5.121 billion yuan in 2024, representing a year-on-year growth of 12.40%, and a net profit of 1.645 billion yuan, up 24.84% year-on-year [3][8] - The report highlights the robust performance of WPS personal business and the significant growth of WPS 365, with a revenue increase of 149.33% [4][8] Financial Performance - In 2024, the company reported a gross margin of 85.14%, a slight decrease of 0.15 percentage points from the previous year [5] - The net profit margin improved to 32.32%, an increase of 3.47 percentage points year-on-year [5] - The company invested 16.96 billion yuan in R&D, accounting for approximately 33% of its revenue, with a 13% increase in R&D personnel [5] Business Segments - WPS personal business generated 3.283 billion yuan in revenue, growing 18.00% year-on-year, driven by the continuous upgrade of WPS AI [4][8] - The WPS 365 business achieved a revenue of 437 million yuan, reflecting a high growth rate of 149.33% [4][8] - The WPS software business saw a revenue decline of 8.56%, with expectations for more customers to transition to the WPS 365 platform [4][8] AI Development - The company launched WPS AI 2.0, which includes various AI tools aimed at enhancing user experience and business efficiency [6][8] - The monthly active users of WPS AI reached 19.68 million in the domestic market, indicating strong user engagement [6][8] Future Projections - The company forecasts EPS of 4.13, 5.08, and 6.13 for the years 2025, 2026, and 2027, respectively [8] - Corresponding P/E ratios are projected to be 74.94, 60.96, and 50.51 for the same years [8]

March 20, 2025 12:55 PM GMT Beijing Kingsoft Office Software Inc | Asia Pacific More Patience Is Needed to Monetize AI | What's Changed | | | | --- | --- | --- | | Beijing Kingsoft Office Software Inc (688111.SS) | From | To | | Price Target | Rmb185.00 | Rmb195.00 | Strategy shift from AI revenue back to user scale amid intensified competition and weak macro conditions suggest that much more patience is needed to see the AI dividend – vs. prior market perception of a pioneer in monetizing AI application. K ...

证券研究报告 | 2025年03月21日 金山办公（688111.SH） 优于大市 四季度收入提速，AI 和海外业务打开新成长空间 2024 年四季度收入提速，利润保持较高增长。2024 年公司营业收入 51.21 亿元（+12.4%）；归母净利润 16.45 亿元（+24.84%），扣非归母净利润 15.56 亿元（+23.30%）。单 Q4 来看，公司收入 14.94 亿元（+16.21%），归母净 利润 6.05 亿元（+42.58%），扣非归母净利润 5.66 亿元（+40.72%）。 控费效果显现，加大 AI 领域研发投入。24 年公司销售、管理费用率分别为 19.36%和 7.86%，同比下降了 1.87、1.89 个百分点。研发费用率为 33.11%， 同比提升 0.79 个百分点。公司加大 AI 领域研发，例如将大模型与全线产品 深度耦合，利用"AI 网关"统一管理不同大模型能力。同时，公司与华为深 度合作，推出 WPS 鸿蒙版，同时实现 PC 端与移动端架构统一。 面向云和 AI 的 WPS 365 业务快速增长，信创业务有所回暖。WPS 个人业务收 入 32.83 亿元（+18%），包含国 ...