Kingsoft Office(SH:688111) Tai Ping Yang·2025-03-24 07:00Investment Rating - The report maintains a "Buy" rating for Kingsoft Office (688111) with a target price based on the last closing price of 309.38 [1][20]. Core Insights - Kingsoft Office has demonstrated strong growth in its WPS 365 business, with AI capabilities opening up new growth opportunities [1]. - The company reported a revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.4%, and a net profit of 1.645 billion yuan, up 24.8% year-on-year [4][11]. - The WPS 365 business revenue surged by 149.33% year-on-year, indicating a significant shift towards AI-driven office solutions [6]. Financial Performance - For Q4 2024, the company achieved a revenue of 1.494 billion yuan, a 16.2% increase year-on-year, and a net profit of 605 million yuan, reflecting a 42.6% growth [4]. - The personal business segment showed steady growth, with WPS personal business revenue reaching 3.283 billion yuan, up 18% year-on-year, and the number of paid personal users increasing by 17.49% to 41.7 million [5]. - The overall gross margin for 2024 was 85.14%, with a net profit margin of 30.39%, an increase of 2.69 percentage points year-on-year [7][16]. Future Projections - The report forecasts revenues of 5.904 billion yuan, 6.900 billion yuan, and 8.140 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.926 billion yuan, 2.296 billion yuan, and 2.693 billion yuan [11][16]. - The company is expected to continue enhancing its AI capabilities, which is anticipated to improve product strength and user payment rates [7].