Kingsoft Office(SH:688111) Soochow Securities·2024-08-20 23:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a stable performance in the C-end market and is advancing its AI initiatives [1] - The revenue for Q2 2024 was 1.188 billion yuan, a year-on-year increase of 5.98%, which was below expectations [5] - The company has adjusted its revenue and net profit forecasts for 2024-2026 due to macroeconomic impacts [8] Revenue and Profitability - Total revenue for H1 2024 was 2.413 billion yuan, a year-on-year increase of 11.09%, with a net profit of 721 million yuan, up 20.38% year-on-year [5][6] - C-end subscription revenue for H1 2024 reached 1.530 billion yuan, a year-on-year increase of 22.2% [6] - B-end subscription revenue for H1 2024 was 443 million yuan, a year-on-year increase of 5.95%, but Q2 showed a decline of 1.78% [6] Subscription Revenue Breakdown - C-end subscription revenue growth was driven by a transformation in the membership system and AI commercialization [6] - The number of paid members reached 38.15 million, with an average revenue per user (ARPU) of 76.83 yuan, an increase of 8.12% year-on-year [6] - B-end authorization revenue for H1 2024 was 325 million yuan, a year-on-year increase of 10.14%, but Q2 saw a significant decline of 26.73% [6] Cash Flow and Expenses - Cash flow from operating activities for H1 2024 was 628 million yuan, a year-on-year increase of 5.51% [8] - The company maintained a stable expense ratio, with sales, management, and R&D expenses showing slight variations [8] Financial Forecasts - The company has revised its revenue forecasts for 2024-2026 to 51.97 billion yuan, 72.54 billion yuan, and 87.61 billion yuan respectively [8] - The net profit forecasts for the same period have been adjusted to 15.35 billion yuan, 22.31 billion yuan, and 27.08 billion yuan respectively [8]