Kingsoft Office(SH:688111)2024-08-22 01:38Investment Rating - The report maintains a "Buy" rating for the company [9] Core Views - The company reported a revenue of 2.413 billion yuan for H1 2024, representing a year-on-year increase of 11.09%, and a net profit attributable to shareholders of 721 million yuan, up 20.38% year-on-year, which aligns with expectations [8] - The personal subscription business continues to grow steadily, with revenue reaching 1.530 billion yuan, a 22% increase year-on-year, and a total of 38.15 million annual paid users, reflecting a 15% year-on-year growth [8] - Institutional business is under short-term pressure, with subscription revenue at 443 million yuan, a 6% increase year-on-year, while authorization revenue decreased by 10% to 325 million yuan [8] - The total contract liabilities increased by approximately 22% year-on-year to 2.69 billion yuan, indicating optimistic growth in subscription business, especially long-cycle subscriptions [8] - The company continues to leverage AI in its office software, with the launch of WPS 365, which integrates documents, AI, and collaboration tools, positioning itself as a leading player in the digital office space [8] Financial Summary - For H1 2024, the company achieved total revenue of 2.413 billion yuan, with a net profit of 721 million yuan, and is projected to reach revenues of 5.250 billion yuan, 6.484 billion yuan, and 8.204 billion yuan in 2024, 2025, and 2026 respectively [10][11] - The expected net profit for 2024, 2025, and 2026 is projected to be 1.507 billion yuan, 1.915 billion yuan, and 2.457 billion yuan respectively [10][11] - The company's price-to-earnings ratio is expected to be 59x, 46x, and 36x for 2024, 2025, and 2026 respectively [9][10]