Kingsoft Office(688111) Huachuang Securities·2025-04-30 10:05Investment Rating - The report maintains a "Strong Buy" rating for Kingsoft Office (688111) [1] Core Views - Kingsoft Office reported a revenue of 1.301 billion yuan for Q1 2025, representing a year-on-year growth of 6.22% [1] - The net profit attributable to shareholders reached 403 million yuan, with a year-on-year increase of 9.75% [1] - The company is focusing on AI and collaboration to build an ecological moat [1] Financial Performance Summary - For 2024, the company achieved a revenue of 5.121 billion yuan, up 12.4% year-on-year, and a net profit of 1.645 billion yuan, up 24.8% year-on-year [1] - The projected revenues for 2025, 2026, and 2027 are 6.239 billion yuan, 7.463 billion yuan, and 8.809 billion yuan, respectively, with growth rates of 21.8%, 19.6%, and 18.0% [4] - The net profit for the same years is expected to be 1.964 billion yuan, 2.324 billion yuan, and 2.692 billion yuan, with growth rates of 19.4%, 18.4%, and 15.8% [4] Business Segments and Growth Drivers - The C-end personal business revenue for Q1 2025 was 857 million yuan, growing by 10.86% year-on-year, with strong performance in both domestic and overseas markets [9] - The B-end cloud collaboration business saw explosive growth, with WPS 365 revenue reaching 151 million yuan, a year-on-year increase of 62.59% [9] - The company is expanding its international business, with global monthly active devices for WPS Office reaching 647 million, a year-on-year growth of 7.92% [9] Investment Recommendations - The report forecasts revenues of 62.39 billion yuan, 74.63 billion yuan, and 88.09 billion yuan for 2025-2027, with corresponding net profits of 19.64 billion yuan, 23.24 billion yuan, and 26.92 billion yuan [9] - A target price of 404.25 yuan is set, based on a 30x price-to-sales ratio, indicating a potential upside from the current price of 281.42 yuan [4][9]