KINGSOFT(03888) 交银国际·2025-03-20 02:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised from HKD 33 to HKD 50, indicating a potential upside of 18.1% from the current price of HKD 42.35 [1][2][11]. Core Insights - The company's fourth-quarter profits exceeded expectations, with a total revenue growth of 21% year-on-year, driven by a 26% increase in gaming revenue and a 17% increase in WPS revenue. The adjusted operating profit rose by 47% year-on-year, surpassing market expectations by 18% due to optimized expense ratios [6][7]. - The gaming business is expected to achieve a 31% revenue growth in 2024, supported by new game releases. The WPS AI features are anticipated to continue driving rapid growth in WPS 365 and personal subscription services [2][6]. - The report projects revenue for 2025 to reach RMB 11,495 million, with a gross profit of RMB 9,542 million, reflecting a gross margin of 83% [5][13]. Financial Performance Summary - Revenue for 2024 is forecasted at RMB 10,318 million, with a significant increase in adjusted operating profit to RMB 4,079 million, maintaining a robust operating margin of 35% [5][13]. - The company’s net profit for 2025 is estimated at RMB 1,819 million, with a Non-GAAP net profit of RMB 2,756 million, indicating a net profit margin of 24% [5][13]. - The company’s market capitalization stands at approximately HKD 56,188.29 million, with a year-to-date stock price change of 25.85% [4].