Kingsoft Office(SH:688111) Great Wall Securities·2024-09-04 06:11Investment Rating - The report maintains a "Buy" rating for Kingsoft Office (688111.SH) [1][10] Core Views - Kingsoft Office's transition to SaaS is progressing smoothly, with continuous upgrades to WPS AI, which has achieved a leading position in the domestic AI application industry [2] - The company has introduced a new membership system, resulting in improved conversion rates and average revenue per user, driving steady growth in personal subscription services [2] - Despite challenges in the institutional authorization business due to policy impacts, the subscription business for both B2B and B2C segments continues to grow rapidly, supported by advancements in AI and SaaS [2] Financial Summary - Revenue for 2022 was 3,885 million CNY, with projections of 4,556 million CNY for 2023 and 5,468 million CNY for 2024, reflecting a year-on-year growth rate of 18.4% in 2022 and an expected 20.0% in 2024 [1][6] - Net profit attributable to shareholders was 1,118 million CNY in 2022, projected to reach 1,318 million CNY in 2023 and 1,519 million CNY in 2024, with growth rates of 7.3% in 2022 and 15.3% in 2024 [1][6] - The company achieved a net profit of 721 million CNY in H1 2024, representing a year-on-year increase of 20.38% [1] Business Developments - The launch of WPS AI 2.0 in July 2024 has introduced significant innovations across various AI functionalities, contributing to the growth of paid users exceeding one million [2] - The domestic personal office service subscription revenue reached 1,530 million CNY in the first half of 2024, up 22.17% year-on-year [2] - The institutional subscription and service revenue was 442 million CNY, marking a 5.95% increase year-on-year, while the institutional authorization business saw a decline of 10.14% to 324.57 million CNY due to policy impacts [2]