KINGSOFT(03888) 东吴证券·2024-08-22 16:36Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - Kingsoft Corporation's Q2 2024 performance exceeded expectations with total revenue of 2.474 billion yuan, a year-on-year increase of 12.78% and a quarter-on-quarter increase of 15.77%. The net profit attributable to shareholders reached 393 million yuan, showing a significant year-on-year increase of 587.84% and a quarter-on-quarter increase of 38.23% [2][3] Summary by Sections Gaming Business - The gaming segment achieved revenue of 1.286 billion yuan in Q2 2024, reflecting a year-on-year growth of 19.89% and a quarter-on-quarter growth of 41.09%. The increase is primarily driven by the performance of games like "Dust White Zone" and "Jian Wang 3: Wujie," leading to an upward revision of the annual revenue guidance from a 10% year-on-year increase to over 20% [3][4] Office Business - The office segment generated revenue of 1.188 billion yuan in Q2 2024, with a year-on-year increase of 5.97% but a quarter-on-quarter decline of 3.07%. The growth in personal office subscriptions continues, with a total of 38.15 million paid users, up 15% year-on-year. The company has also upgraded its AI strategy, launching WPS AI 2.0, which includes new AI office assistants for personal and enterprise users [3][4] Financial Forecast and Valuation - The report has revised the EPS forecasts for 2024-2026 to 0.99, 1.13, and 1.40 yuan respectively, reflecting an increase from previous estimates. The corresponding P/E ratios at the current stock price are projected to be 19, 16, and 13 times [4][9]