Kingsoft Office(SH:688111) Xin Lang Cai Jing·2025-08-26 02:37Core Viewpoint - Kingsoft Office reported a strong performance in the first half of 2025, with revenue and net profit growth, driven by the resilience of its WPS personal business and rapid growth in WPS 365 services [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 2.657 billion yuan, a year-on-year increase of 10.12%, and a net profit of 747 million yuan, up 3.57% [1]. - For Q2 2025, revenue reached 1.356 billion yuan, reflecting a year-on-year growth of 14.14%, while net profit was 344 million yuan, a decline of 2.83% [1]. Group 2: WPS Personal Business - The WPS personal business generated revenue of 1.748 billion yuan, marking an 8.38% increase year-on-year, with a global monthly active device count of 651 million, up 8.56% [1][2]. - The company is enhancing its market share in domestic office software and has initiated the development of a new international version of WPS, aiming to migrate high-value features from domestic to international markets [1][2]. Group 3: WPS 365 Business - WPS 365 achieved revenue of 309 million yuan, a significant year-on-year increase of 62.27%, with new features like AI Docs enhancing product capabilities [2]. - The company is actively promoting WPS 365 in various industries and scenarios, collaborating with leading clients to replicate successful projects [2]. Group 4: WPS Software Business - The WPS software business reported revenue of 542 million yuan, a slight decline of 2.08% year-on-year, while maintaining a leading market share in government procurement of domestic office software [2]. Group 5: AI Development - The launch of WPS AI 3.0 has led to nearly 30 million monthly active users, with new features indicating a shift towards collaborative intelligent applications [3]. - The company anticipates accelerated growth in AI monthly active users in the second half of 2025 as new AI products are rolled out [3]. Group 6: Investment Outlook - The company expects continued growth in personal subscription users and ARPU driven by AI capabilities, forecasting revenues of 6.109 billion, 7.295 billion, and 8.717 billion yuan for 2025-2027, with corresponding EPS of 4.12, 5.18, and 6.25 yuan [3].