Kingsoft Office(SH:688111) Shanghai Securities·2025-08-18 11:32Group 1 - The core viewpoint of the report is to select converging constituent stocks for ETF allocation based on data as of July 31, 2025, and to regularly track the effectiveness of the allocation strategy [1] - The best converging stock for the Software ETF (159852.SZ) as of the end of July 2025 is Kingsoft Office (688111), which is also a weighted stock in the ETF [2][7] - Kingsoft Office's stock price has mostly fluctuated below the expected fundamental value for 2027, which is based on a price-to-sales (PS) ratio of 17.2 times the expected earnings per share [2][7] Group 2 - The average closing position from July 31 to August 15, 2025, was 28.3%, with a closing position of 37.59% on August 15 [2][8] - The dynamic allocation strategy based on Kingsoft Office yielded a Sharpe ratio slightly better than a buy-and-hold strategy, achieving a final return of 1.72% with a maximum drawdown of 0.68% from August 1 to August 15, 2025 [2][8] - In comparison, the buy-and-hold strategy for the Software ETF achieved a final return of 3.29% with a maximum drawdown of 3.36% [8]