Kingsoft Office(SH:688111) KAIYUAN SECURITIES·2025-03-02 10:23Investment Rating - The investment rating for Kingsoft Office (688111.SH) is maintained at "Buy" [1] Core Views - The company's performance exceeded expectations, leading to an upward adjustment in the net profit forecast for 2024-2026 to 1.645 billion, 2.064 billion, and 2.542 billion yuan respectively, with corresponding EPS of 3.56, 4.46, and 5.50 yuan per share [4][5] - The growth is attributed to the robust performance of core business revenues, improved operational efficiency, and increased investment income [5] - The integration of WPS AI with Deepseek marks a shift from "assistive tools" to "cognitive partners" in smart office tools, enhancing user engagement and conversion rates [6] Financial Summary and Valuation Metrics - The company is expected to achieve a total revenue of 5.121 billion yuan in 2024, representing a year-on-year growth of 12.4% [5] - The projected net profit for 2024 is 1.645 billion yuan, with a year-on-year increase of 24.8% [5] - The gross margin is expected to remain stable around 85%, while the net margin is projected to increase to 32.1% in 2024 [8] - The P/E ratios for 2024, 2025, and 2026 are forecasted at 97.3, 77.6, and 63.0 respectively [8]