Kingsoft Office(688111) 国海证券·2024-08-21 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated resilient growth in revenue and profits, with significant contributions from the "WPS AI + Premium Membership" model, surpassing one million paid users [1] - The transition to a subscription model is progressing smoothly, with a focus on expanding into the public cloud market for medium to large enterprises [3][4] Financial Performance - In H1 2024, the company reported revenue of 2.413 billion yuan, a year-on-year increase of 11.09%, and a net profit attributable to shareholders of 721 million yuan, up 20.38% [3] - The revenue breakdown shows that personal subscriptions contributed 1.53 billion yuan (up 22% YoY), while institutional subscriptions brought in 443 million yuan (up 6% YoY) [1][3] Business Segments - The company is maintaining growth across various business lines, with a notable increase in R&D investment, which reached 808 million yuan, a 13% increase YoY [4] - The C-end commercialization is progressing well, with the launch of WPS AI 2.0 leading to stable growth in monthly active users [5] Market Position and Future Outlook - The company is positioned as a leading domestic office software provider, with expectations for revenue growth to reach 5.177 billion yuan in 2024, and net profit to reach 1.609 billion yuan [7][9] - The projected EPS for 2024 is 3.48 yuan per share, with a corresponding P/E ratio of 54.96 [9][10]