Kingsoft Office(688111) 国海证券·2024-10-27 08:17Investment Rating - The report maintains a "Buy" rating for the company [1][5][8] Core Insights - The company reported a revenue of 3.627 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 10.9%, with a net profit attributable to shareholders of 1.04 billion yuan, up 16.41% year-on-year [2] - The WPS AI 2.0 has introduced new AI tools, enhancing user engagement and subscription growth, particularly in the personal office service sector, which saw a revenue increase of 17.24% year-on-year [2][5] - The company is focusing on the public cloud market and has seen a 3.6 percentage point increase in the revenue share from institutional subscription services, which now accounts for 20% of total revenue [2][5] Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.214 billion yuan, a year-on-year increase of 10.53%, and a net profit of 318 million yuan, up 8.33% year-on-year [2] - The company's R&D expense ratio increased to 37.41% in Q3 2024, indicating a commitment to long-term growth through enhanced research and development [3] - The projected revenues for 2024-2026 are 5.242 billion yuan, 6.439 billion yuan, and 8.035 billion yuan respectively, with net profits expected to be 1.534 billion yuan, 1.942 billion yuan, and 2.556 billion yuan [5][6][8] Market Position and Growth Drivers - The company is positioned as a leading domestic office software provider, with the ongoing commercialization of WPS AI and deepening development in the "Xinchuang" sector expected to drive future growth [5][6] - The monthly active devices for the company's main products reached 618 million, reflecting a year-on-year increase of 4.92% [2][5] - The company has strategically aligned its offerings with policy changes and customer needs, particularly in the government and enterprise sectors, which has led to increased orders and growth in institutional licensing [2][5]