Investment Rating - The report maintains a "Recommended" rating for Kingsoft Office (688111.SH) [5] Core Insights - Kingsoft Office reported a total revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.40%, and a net profit attributable to shareholders of 1.645 billion yuan, up 24.84% year-on-year [1] - The company is transitioning from a narrow office software focus to a broader office solutions provider, integrating AI into its existing business over the next five years [1] - The WPS 365 business segment saw significant growth, with revenue reaching 437 million yuan in 2024, a staggering increase of 149.33% year-on-year, driven by enhancements for organizational clients [1][2] - Monthly active devices for WPS Office reached 632 million by the end of 2024, a 6.22% increase year-on-year, indicating stable growth in user engagement [2] Summary by Sections Revenue and Profitability - For 2024, Kingsoft Office achieved total revenue of 5.121 billion yuan, with a projected revenue growth rate of 19.3% for 2025, reaching 6.109 billion yuan [4] - The net profit attributable to shareholders is expected to grow to 1.907 billion yuan in 2025, reflecting a growth rate of 15.9% [4] Business Segments - WPS Personal Business is projected to generate 3.283 billion yuan in revenue for 2024, an 18% increase, primarily due to the launch of WPS AI office assistants [1] - WPS Software Business is expected to see a decline in revenue to 1.268 billion yuan, down 8.56% year-on-year, as clients shift towards WPS 365 services [1] Future Projections - Revenue forecasts for Kingsoft Office are 6.109 billion yuan in 2025, 7.295 billion yuan in 2026, and 8.717 billion yuan in 2027, with corresponding EPS estimates of 4.12 yuan, 5.19 yuan, and 6.26 yuan respectively [3][4] - The report anticipates a PE ratio of 76X for 2025, decreasing to 50X by 2027, indicating a positive outlook on valuation [4]

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 ...

Investment Rating - The report maintains a "Buy" rating for Kingsoft Office (688111) with a target price based on the last closing price of 309.38 [1][20]. Core Insights - Kingsoft Office has demonstrated strong growth in its WPS 365 business, with AI capabilities opening up new growth opportunities [1]. - The company reported a revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.4%, and a net profit of 1.645 billion yuan, up 24.8% year-on-year [4][11]. - The WPS 365 business revenue surged by 149.33% year-on-year, indicating a significant shift towards AI-driven office solutions [6]. Financial Performance - For Q4 2024, the company achieved a revenue of 1.494 billion yuan, a 16.2% increase year-on-year, and a net profit of 605 million yuan, reflecting a 42.6% growth [4]. - The personal business segment showed steady growth, with WPS personal business revenue reaching 3.283 billion yuan, up 18% year-on-year, and the number of paid personal users increasing by 17.49% to 41.7 million [5]. - The overall gross margin for 2024 was 85.14%, with a net profit margin of 30.39%, an increase of 2.69 percentage points year-on-year [7][16]. Future Projections - The report forecasts revenues of 5.904 billion yuan, 6.900 billion yuan, and 8.140 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.926 billion yuan, 2.296 billion yuan, and 2.693 billion yuan [11][16]. - The company is expected to continue enhancing its AI capabilities, which is anticipated to improve product strength and user payment rates [7].

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]

Summary of Beijing Kingsoft Office Software Inc Conference Call Company Overview - **Company**: Beijing Kingsoft Office Software Inc (688111.SS) - **Industry**: IT Services and Software - **Current Price**: Rmb323.60 - **Market Cap**: Rmb149,414 million - **Price Target**: Raised from Rmb185.00 to Rmb195.00 [1][4][33] Key Points and Arguments AI Monetization Strategy - The company is shifting its strategy from focusing on AI revenue to user scale due to intensified competition and weak macroeconomic conditions, indicating that more patience is required to realize AI monetization benefits [1][10] - Management aims to increase monthly active users (MAU) from 20 million in 2024 to over 100 million in 2025, focusing on document and presentation features, with plans for more AI functionalities in spreadsheets and data analytics [10][19] Financial Performance and Projections - Revenue projections for 2024-2027 show a decrease in the compound annual growth rate (CAGR) for 2C subscription revenue from 17% to 14%, while license revenue forecasts are increased due to the Xinchuang initiative [4][19] - Earnings per share (EPS) forecasts are expected to rise by 4% for 2025, 5% for 2026, and 6% for 2027, driven by higher investment income [4][19] - The company’s financial metrics indicate a high valuation with a P/E ratio of 88x and EV/sales of 24x, which are considered among the most expensive in the industry [5][19] Market and Competitive Landscape - The enterprise subscription revenue growth is projected to face multi-quarter headwinds due to the transition to SaaS [19] - The company is underweight (UW) due to expectations for growth needing to be reset from the current overly high market levels [19] Risk Factors - Risks include delayed AI monetization amid fierce competition and insufficient development of unique offerings [19][28] - Government budget constraints in software localization and intensified competition in online collaboration are also highlighted as potential risks [28] Financial Metrics and Ratios - **Revenue Estimates**: - 2024: Rmb5,121 million - 2025: Rmb6,031 million - 2026: Rmb7,100 million - 2027: Rmb8,413 million [11][27] - **Net Profit Estimates**: - 2024: Rmb1,645 million - 2025: Rmb1,806 million - 2026: Rmb2,282 million - 2027: Rmb2,928 million [11][27] - **Gross Margin**: Expected to remain around 85-86% through 2027 [12] Additional Important Insights - The company is focusing on expanding its overseas market presence and aims to establish WPS 365 as a top-tier enterprise collaborative brand [10] - The financial summary indicates a significant increase in cash balance from Rmb898 million in 2025 to Rmb7,659 million by 2027, reflecting improved cash flow management [12][13] This summary encapsulates the key insights from the conference call, highlighting the strategic shifts, financial projections, and market challenges faced by Beijing Kingsoft Office Software Inc.

点击注册小程序 查看完整报告 特别申明： 本订阅号中所涉及的证券研究信息由光大证券研究所编写，仅面向光大证券专业投资者客 户，用作新媒体形势下研究信息和研究观点的沟通交流。非光大证券专业投资者客户，请勿 订阅、接收或使用本订阅号中的任何信息。本订阅号难以设置访问权限，若给您造成不便， 敬请谅解。光大证券研究所不会因关注、收到或阅读本订阅号推送内容而视相关人员为光大 证券的客户。 报告摘要 风险提示： AI落地不及预期，信创进展不及预期。 发布日期： 2025- 03-21 免责声明 本订阅号是光大证券股份有限公司研究所（以下简称"光大证券研究所"）依法设立、独立运营 的官方唯一订阅号。其他任何以光大证券研究所名义注册的、或含有"光大证券研究"、与光大 证券研究所品牌名称等相关信息的订阅号均不是光大证券研究所的官方订阅号。 个人业务稳健增长，WPS 365开启增长新引擎 分业务看，2024年，WPS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 球月度活跃设备数为6.32亿，同比增长6.22%；其中，WPSOffice PC版月度活跃设备数2.91亿，同比增长 9 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [5][14]. Core Views - The company experienced a revenue acceleration in Q4 2024, with total revenue reaching 5.121 billion yuan, a year-on-year increase of 12.4%, and a net profit attributable to shareholders of 1.645 billion yuan, up 24.84% [1][7]. - The company is increasing its investment in AI research and development, with a research expense ratio of 33.11%, up 0.79 percentage points year-on-year, while controlling sales and management expenses effectively [1][11]. - The WPS 365 business is growing rapidly, with revenue of 437 million yuan, a staggering increase of 149.33%, driven by cloud and AI services [2][3]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 1.494 billion yuan, a 16.21% increase, and a net profit of 605 million yuan, up 42.58% [1][7]. - The total revenue for 2024 was 5.121 billion yuan, with a net profit of 1.645 billion yuan, reflecting strong growth in profitability [1][7]. - The company’s gross margin remained stable at 85.14%, with a net margin improvement due to high profit growth [11]. User Growth and Contracts - By the end of 2024, the company had 417 million annual paid users in China, a 17.49% increase, and 6.32 billion monthly active devices globally, up 6.22% [3][4]. - The company’s contract liabilities grew to 2.136 billion yuan, a 12.90% increase, indicating effective long-term membership growth strategies [3][4]. Future Projections - The company adjusted its profit forecast for 2025-2027, expecting net profits of 1.896 billion, 2.316 billion, and 2.841 billion yuan, with year-on-year growth rates of 15%, 22%, and 23% respectively [14][16]. - The diluted EPS is projected to be 4.10, 5.01, and 6.14 yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 79, 65, and 53 times [14][16].

Investment Rating - The report does not provide a specific investment rating for the company [6] Core Insights - The company achieved a revenue of 5.121 billion yuan in 2024, representing a year-on-year growth of 12%, and a net profit of 1.645 billion yuan, up 25% year-on-year [1] - The personal business segment showed robust growth, with WPS personal business revenue reaching 3.283 billion yuan, a year-on-year increase of 18% [2] - The WPS 365 business saw significant growth, with revenue of 437 million yuan, a substantial increase of 149% [2] - The monthly active users of WPS AI reached nearly 20 million, indicating strong user engagement and product adoption [3] - The company invested 1.696 billion yuan in R&D in 2024, a 15.16% increase year-on-year, with R&D expenses accounting for approximately 33% of total revenue [3] Revenue and Profit Forecast - The revenue forecast for 2025 and 2026 has been slightly adjusted to 6.274 billion yuan and 7.670 billion yuan respectively, reflecting a decrease of 10.05% and 11.55% [4] - The net profit forecast for 2025 and 2026 has been revised to 1.998 billion yuan and 2.413 billion yuan, with adjustments of 7.46% and 9.93% [4] - The projected P/E ratios for 2025, 2026, and 2027 are 79x, 65x, and 55x respectively [4] Financial Performance Summary - In 2024, the company reported a gross margin of 85.1% and an EBITDA margin of 28.9% [12] - The net profit margin for 2024 was 32.1%, indicating strong profitability [12] - The company’s total assets are projected to grow from 15.913 billion yuan in 2024 to 24.382 billion yuan by 2027 [11] User Engagement and Product Development - As of December 31, 2024, the global monthly active devices for WPS Office reached 632 million, a growth of 6.22% year-on-year [2] - The company launched various AI tools, enhancing its product offerings and user experience [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a total revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.4%, and a net profit attributable to the parent company of 1.645 billion yuan, up 24.8% year-on-year [7] - The WPS 365 product is driving new growth in the B-end market, with its revenue reaching 440 million yuan, a significant increase of 149% year-on-year [7] - The C-end market shows promising growth with nearly 20 million monthly active users and a continuous increase in the payment rate, leading to a domestic personal subscription revenue of 3.1 billion yuan, up 17% year-on-year [7] - The company is expected to benefit from the steady recovery of the "Xin Chuang" (信创) initiative, with institutional authorization business revenue of 710 million yuan, up 8% year-on-year [7] - The overseas business is progressing well, with personal business revenue of 180 million yuan and 1.74 million paid personal users, indicating a new growth space for the company [7] - The total contract liabilities increased by over 20%, reaching 3.18 billion yuan, indicating optimistic growth in subscription business [7] - The revenue forecast for 2025-2027 has been adjusted to 6.036 billion, 7.210 billion, and 8.699 billion yuan respectively, with net profit forecasts of 1.919 billion, 2.322 billion, and 2.821 billion yuan [7] Financial Data and Profit Forecast - The company’s total revenue is projected to grow from 4.556 billion yuan in 2023 to 8.699 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 20.7% [6][9] - The net profit attributable to the parent company is expected to increase from 1.318 billion yuan in 2023 to 2.821 billion yuan in 2027, reflecting a strong growth trajectory [6][9] - The gross margin is expected to remain stable, with projections of 85.4% in 2025 and increasing to 86.2% by 2027 [6]

Investment Rating - The report maintains a "Recommended" investment rating for Kingsoft Office (688111.SH) [1] Core Views - 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 attributable to shareholders of 1.645 billion yuan, up 24.84% year-on-year [4][8] - The WPS 365 business saw significant growth, with revenue increasing by 149.33% to 437 million yuan in 2024, indicating strong market impact and user expansion [11] - The report highlights the robust performance in the fourth quarter of 2024, with revenue of 1.494 billion yuan, a 16.21% increase year-on-year, and a net profit of 605 million yuan, up 42.58% year-on-year [8] Financial Summary - Revenue projections for 2025-2027 are set at 6.175 billion yuan, 7.405 billion yuan, and 8.871 billion yuan, with respective growth rates of 20.6%, 19.9%, and 19.8% [6][12] - Net profit forecasts for the same period are 1.996 billion yuan, 2.411 billion yuan, and 2.883 billion yuan, with growth rates of 21.3%, 20.8%, and 19.6% [6][12] - The gross margin is expected to remain stable, with projections of 86.3%, 86.4%, and 86.6% for 2025-2027 [6][13] Business Performance - The WPS personal business generated 3.283 billion yuan in revenue, a year-on-year increase of 18%, with a total of 41.7 million paid personal users in China, up 17.49% [9] - The report notes that the WPS AI product has been upgraded to enhance user experience and drive user conversion, with significant growth in active users [9][11] - The company is expanding its international business, achieving 183 million yuan in overseas personal business revenue, with 1.74 million paid users [9] Profit Distribution - The company plans to distribute a cash dividend of approximately 416 million yuan, equating to 9.00 yuan per 10 shares [4]