Kingsoft Office(SH:688111) Minsheng Securities·2025-03-25 05:36Investment Rating - The report maintains a "Recommended" rating for Kingsoft Office (688111.SH) [5] Core Insights - Kingsoft Office reported a total revenue of 5.121 billion yuan for 2024, representing a year-on-year growth of 12.40%, and a net profit attributable to shareholders of 1.645 billion yuan, up 24.84% year-on-year [1] - The company is transitioning from a narrow office software focus to a broader office solutions provider, integrating AI into its existing business over the next five years [1] - The WPS 365 business segment saw significant growth, with revenue reaching 437 million yuan in 2024, a staggering increase of 149.33% year-on-year, driven by enhancements for organizational clients [1][2] - Monthly active devices for WPS Office reached 632 million by the end of 2024, a 6.22% increase year-on-year, indicating stable growth in user engagement [2] Summary by Sections Revenue and Profitability - For 2024, Kingsoft Office achieved total revenue of 5.121 billion yuan, with a projected revenue growth rate of 19.3% for 2025, reaching 6.109 billion yuan [4] - The net profit attributable to shareholders is expected to grow to 1.907 billion yuan in 2025, reflecting a growth rate of 15.9% [4] Business Segments - WPS Personal Business is projected to generate 3.283 billion yuan in revenue for 2024, an 18% increase, primarily due to the launch of WPS AI office assistants [1] - WPS Software Business is expected to see a decline in revenue to 1.268 billion yuan, down 8.56% year-on-year, as clients shift towards WPS 365 services [1] Future Projections - Revenue forecasts for Kingsoft Office are 6.109 billion yuan in 2025, 7.295 billion yuan in 2026, and 8.717 billion yuan in 2027, with corresponding EPS estimates of 4.12 yuan, 5.19 yuan, and 6.26 yuan respectively [3][4] - The report anticipates a PE ratio of 76X for 2025, decreasing to 50X by 2027, indicating a positive outlook on valuation [4]