Kingsoft Office(688111) 财信证券·2024-11-05 01:30Investment Rating - The report maintains a "Buy" rating for the company [1][6][9] Core Views - The company continues to show steady growth in Q3, with a focus on AI integration and subscription model development [1][4][6] - The personal subscription business is experiencing robust growth, supported by new AI features that enhance user engagement and conversion [4][5] - The institutional subscription business has seen a slowdown in growth, but the company is actively expanding into the public cloud market to improve revenue streams [5][6] Financial Performance - For the first three quarters, the company achieved revenue of 36.27 billion yuan, a year-over-year increase of 10.90%, and a net profit of 10.40 billion yuan, up 16.41% year-over-year [1][4] - In Q3 alone, the company reported revenue of 12.14 billion yuan, a year-over-year increase of 10.53%, and a net profit of 3.18 billion yuan, up 8.33% year-over-year [4][5] - Research and development expenses reached 12.62 billion yuan, accounting for 34.78% of revenue, reflecting a year-over-year increase of 17.26% [1][4] Subscription Business Insights - The domestic personal office service subscription revenue for Q3 was 7.62 billion yuan, representing a year-over-year growth of 17.24% [4][5] - Monthly active users increased, with the main product's active device count reaching 618 million, a year-over-year growth of 4.92% [4][5] - The institutional subscription revenue for Q3 was 2.48 billion yuan, showing minimal growth of 0.02% year-over-year, indicating a need for strategic adjustments [5][6] Future Projections - The company forecasts revenues of 53.05 billion yuan, 65.72 billion yuan, and 82.72 billion yuan for 2024, 2025, and 2026 respectively, with year-over-year growth rates of 16.44%, 23.89%, and 25.86% [5][7] - Net profit is projected to reach 15.00 billion yuan, 18.54 billion yuan, and 23.51 billion yuan for the same years, with corresponding growth rates of 13.86%, 23.59%, and 26.78% [5][7]