Kingsoft Office(SH:688111) KAIYUAN SECURITIES·2025-03-20 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][15]. Core Insights - The company has a clear long-term growth path, supported by increased marketing and R&D investments. The net profit forecasts for 2025 and 2026 have been adjusted to 1.879 billion and 2.187 billion yuan, respectively, with a new forecast for 2027 at 2.540 billion yuan. The corresponding EPS for these years are projected to be 4.06, 4.73, and 5.49 yuan per share, with current PE ratios of 79.7, 68.5, and 59.0 times. The continuous upgrades of the WPS AI product are expected to open new growth opportunities, justifying the "Buy" rating [4][5][6]. Financial Performance Summary - In 2024, the company achieved operating revenue of 5.121 billion yuan, a year-on-year increase of 12.40%. The net profit attributable to the parent company was 1.645 billion yuan, up 24.84% year-on-year. The gross profit margin was 85.14%, with slight declines in sales and management expense ratios [5][7]. - The total amount of contract liabilities and other liabilities reached 3.186 billion yuan, reflecting a growth of 20.75% year-on-year, providing a solid foundation for sustainable growth. Investment income increased significantly by 68.79% to 370 million yuan, primarily due to increased financial management returns [5][6]. User Engagement and Product Development - The WPS AI product has seen continuous iteration, with domestic monthly active users reaching approximately 19.68 million. The personal business revenue for WPS in 2024 was 3.283 billion yuan, representing an 18.00% year-on-year growth. The number of annual paid personal users in the domestic market reached 41.7 million, a year-on-year increase of 17.49% [6][7]. - The company has successfully attracted users through differentiated value-added features, with overseas personal business revenue of 183 million yuan and a total of 1.74 million annual paid personal users, indicating potential for new growth in international markets [6][7].