Kingsoft Office(688111) 天风证券·2024-08-24 08:03Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [4][11]. Core Insights - The company achieved a total revenue of 241,299 million yuan in the first half of 2024, representing a year-on-year growth of 11.09%. The net profit attributable to the parent company was 72,144 million yuan, up 20.38% year-on-year [1][3]. - The transition to a SaaS model for domestic institutional subscription services is progressing smoothly, laying a solid foundation for the company's long-term healthy development [1]. - The company launched WPS 365, a new productivity platform for organizations and enterprises, which has already served over 18,000 major government and enterprise clients [2][3]. Financial Performance - Revenue from personal office service subscriptions reached 152,982 million yuan, growing by 22.17% year-on-year. Domestic institutional subscription and service revenue was 44,270 million yuan, up 5.95% year-on-year [1]. - The total contract liabilities amounted to 268,547 million yuan by the end of the first half of 2024, indicating healthy growth in related contracts [1]. - The company adjusted its revenue forecasts for 2024-2026 from 56.53/74.21/96.63 billion yuan to 51.37/60.75/73.16 billion yuan, and net profit forecasts from 16.25/21.63/28.79 billion yuan to 15.52/19.54/24.05 billion yuan [3]. Product Development - The company continues to iterate on its key strategic product, WPS AI, with the release of WPS AI 2.0 in July 2024, enhancing features across various dimensions [3]. - The introduction of WPS AI for government clients includes capabilities tailored for administrative tasks, supporting private deployment and various environments [3]. Market Position - The company is positioned as a leading domestic office software provider, with a focus on rapid iteration of AI products and expansion into the public cloud market [3][4].