Kingsoft Office(688111) 华鑫证券·2025-03-27 10:23Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [8]. Core Insights - The company achieved a revenue of 5.121 billion yuan in 2024, representing a year-on-year growth of 12.40%, and a net profit of 1.645 billion yuan, which is a 24.84% increase compared to the previous year [1]. - The growth is driven by two main factors: the personal business segment and the WPS365 service, with a strong focus on AI technology to enhance user experience and expand subscription growth both domestically and internationally [1][3]. - The company is a leading provider of office software in China, with a significant presence in over 220 countries and a monthly active device count exceeding 630 million [3]. Revenue Breakdown - The revenue from different business segments includes: - WPS Personal Business: 3.283 billion yuan, up 18.00% - WPS365 Business: 437 million yuan, up 149.33% - Software Business: 1.268 billion yuan, down 8.56% - Other Business: 132 million yuan, down 37.17% [2]. - The gross margins for these segments are 81.19%, 91.16%, 92.72%, and 91.30% respectively [2]. Strategic Focus - The company is concentrating on collaboration and AI fields, enhancing its product competitiveness in smart office solutions [3][6]. - The WPS365 platform is expanding its market influence, particularly in state-owned enterprises and private sectors, with notable clients including China Resources Group and New Oriental [3]. AI Integration - The integration of AI technology is significantly enhancing the company's business capabilities, with WPS AI reaching 19.68 million monthly active users and over 260 billion documents uploaded to the cloud [7]. - The company is also collaborating with Huawei to launch a WPS version for HarmonyOS, which is expected to broaden its revenue potential [7]. Profit Forecast - The company forecasts revenues of 6.413 billion yuan, 7.759 billion yuan, and 9.221 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 4.00 yuan, 4.86 yuan, and 5.88 yuan [8][9].