Kingsoft Office(SH:688111)2025-03-21 14:01Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a total revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.4%, and a net profit attributable to the parent company of 1.645 billion yuan, up 24.8% year-on-year [7] - The WPS 365 product is driving new growth in the B-end market, with its revenue reaching 440 million yuan, a significant increase of 149% year-on-year [7] - The C-end market shows promising growth with nearly 20 million monthly active users and a continuous increase in the payment rate, leading to a domestic personal subscription revenue of 3.1 billion yuan, up 17% year-on-year [7] - The company is expected to benefit from the steady recovery of the "Xin Chuang" (信创) initiative, with institutional authorization business revenue of 710 million yuan, up 8% year-on-year [7] - The overseas business is progressing well, with personal business revenue of 180 million yuan and 1.74 million paid personal users, indicating a new growth space for the company [7] - The total contract liabilities increased by over 20%, reaching 3.18 billion yuan, indicating optimistic growth in subscription business [7] - The revenue forecast for 2025-2027 has been adjusted to 6.036 billion, 7.210 billion, and 8.699 billion yuan respectively, with net profit forecasts of 1.919 billion, 2.322 billion, and 2.821 billion yuan [7] Financial Data and Profit Forecast - The company’s total revenue is projected to grow from 4.556 billion yuan in 2023 to 8.699 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 20.7% [6][9] - The net profit attributable to the parent company is expected to increase from 1.318 billion yuan in 2023 to 2.821 billion yuan in 2027, reflecting a strong growth trajectory [6][9] - The gross margin is expected to remain stable, with projections of 85.4% in 2025 and increasing to 86.2% by 2027 [6]