Kingsoft Office(SH:688111) Ge Long Hui A P P·2025-08-21 07:36Core Viewpoint - The report from Kaiyuan Securities maintains a "buy" rating for Kingsoft Office, projecting net profit for 2025-2027 at 1.879 billion, 2.187 billion, and 2.540 billion yuan respectively, with corresponding EPS of 4.06, 4.72, and 5.48 yuan per share, indicating a current PE of 74.2, 63.7, and 54.9 times [1] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.657 billion yuan, a year-on-year increase of 10.12%, and a net profit attributable to shareholders of 747 million yuan, up 3.57% [1] - The second quarter alone saw operating revenue of 1.356 billion yuan, a year-on-year growth of 14.14%, while net profit attributable to shareholders was 344 million yuan, down 2.83% [1] - The company's net cash flow from operating activities for the first half of 2025 was 738 million yuan, reflecting a year-on-year increase of 17.51% [2] Group 2: Revenue Structure - The revenue from WPS personal business in the first half of 2025 was 1.748 billion yuan, an increase of 8.38% year-on-year, while WPS365 business revenue reached 308.8 million yuan, growing by 62.27% [1] - WPS software business revenue was 541.6 million yuan, showing a decline of 2.08%, although the growth rate in Q2 significantly rebounded due to the recovery in the Xinchuang sector [1] Group 3: Cost and Investment - The gross profit margin for the first half of 2025 was 85.03%, an increase of 0.11 percentage points year-on-year [2] - Research and development expenses increased significantly, with the R&D personnel count reaching 3,533 by the end of June 2025, a year-on-year growth of 18.12% [2] - The company’s total liabilities, including contract liabilities and other debts, amounted to 3.281 billion yuan by the end of June 2025, reflecting a growth of 2.99% since the beginning of the year [2] Group 4: Product Development - In the first half of 2025, the company launched WPS AI 3.0 and introduced new features such as AI document editing, Lingxi voice assistant, WPS AIPPT, and WPS knowledge base [2] - The monthly active users of WPS AI reached 29.51 million, with expectations for rapid growth in the second half of the year due to ongoing user benefits and the rollout of new AI products [2]