Kingsoft Office(SH:688111) KAIYUAN SECURITIES·2025-08-21 05:48Investment Rating - The investment rating for the company is maintained as "Buy" [2][6] Core Views - The company has shown a significant recovery in revenue growth in Q2, with a notable increase in WPS AI monthly active users [1][7] - The long-term growth path for the company is clear, supported by continuous upgrades to the WPS AI product, which is expected to open new growth opportunities [6][8] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 2.657 billion yuan, a year-on-year increase of 10.12%, and a net profit attributable to the parent company of 747 million yuan, up 3.57% year-on-year [7] - The Q2 single-quarter operating revenue was 1.356 billion yuan, reflecting a year-on-year growth of 14.14%, while the net profit attributable to the parent company was 344 million yuan, a decline of 2.83% year-on-year [7] - The company's gross profit margin for the first half of 2025 was 85.03%, an increase of 0.11 percentage points year-on-year [7] - The company has increased its investment in AI research and development, with R&D personnel growing by 18.12% to 3,533 by the end of June 2025 [7] Product Development and Market Position - The company launched WPS AI 3.0 and introduced new features such as AI document editing and WPS voice assistant, with monthly active users of WPS AI reaching 29.51 million [8] - The WPS 365 business revenue grew by 62.27% year-on-year, indicating strong performance in this segment [7] Financial Projections - The company forecasts net profits attributable to the parent company for 2025, 2026, and 2027 to be 1.879 billion yuan, 2.187 billion yuan, and 2.540 billion yuan, respectively, with corresponding EPS of 4.06 yuan, 4.72 yuan, and 5.48 yuan [6][10]