Kingsoft Office(SH:688111) Shanxi Securities·2024-10-31 02:40Investment Rating - The report maintains a "Buy-A" rating for Kingsoft Office (688111.SH) [1][2] Core Views - The personal subscription business shows steady growth, while the institutional subscription business faces short-term pressure due to the ongoing SaaS transformation [2][3] - The company reported a revenue of 3.627 billion yuan for the first three quarters of 2024, a year-on-year increase of 10.90%, and a net profit of 1.04 billion yuan, up 16.41% year-on-year [1][2] Summary by Sections Financial Performance - 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 [1][2] - The personal office service subscription revenue for Q3 2024 was 762 million yuan, a year-on-year increase of 17.24%, driven by continuous upgrades of WPS AI 2.0 [2] - Institutional subscription and service revenue for Q3 2024 was 248 million yuan, showing a slight increase of 0.02% year-on-year, attributed to the limited revenue recognition during the SaaS transformation [2] - The company’s gross margin for Q3 2024 was 85.47%, an increase of 0.66 percentage points year-on-year [2] Research and Development - R&D expenses reached 454 million yuan in Q3 2024, a year-on-year increase of 26.54%, reflecting the company's commitment to enhancing AI and collaborative office solutions [2][3] Future Earnings Forecast - The report adjusts the earnings per share (EPS) forecast for 2024-2026 to 3.22, 3.96, and 4.88 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 80.30, 65.35, and 52.96 [2][3]