Kingsoft Office(SH:688111) Western Securities·2025-08-26 11:11Investment Rating - The investment rating for the company is "Buy" [5][11] Core Views - The company reported a revenue of 2.657 billion yuan for H1 2025, representing a year-on-year increase of 10.12%, and a net profit attributable to shareholders of 747 million yuan, up 3.57% year-on-year [1][5] - The WPS 365 business showed significant growth, with revenue reaching 309 million yuan, a year-on-year increase of 62.27% [1][5] - The company is increasing its R&D investment, with 960 million yuan spent in H1 2025, a 19% increase year-on-year, and a R&D expense ratio of 36.1% [3] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 1.36 billion yuan, up 14% year-on-year, with the WPS personal business generating 890 million yuan, a 6% increase [2] - The WPS 365 business in Q2 generated 160 million yuan, reflecting a 62% year-on-year growth [2] - The total revenue for the first half of 2025 was 2.657 billion yuan, with a breakdown showing WPS personal business at 1.748 billion yuan (up 8.38%), WPS 365 at 309 million yuan (up 62.27%), and WPS software business at 542 million yuan (down 2.08%) [1][5] R&D and Innovation - The company has a total of 3,533 R&D personnel, accounting for approximately 66% of the total workforce [3] - The launch of WPS AI 3.0 has led to a monthly active user count of nearly 30 million, with expectations for continued growth in the second half of the year [3] Future Projections - Revenue projections for 2025 to 2027 are estimated at 5.906 billion yuan, 7.038 billion yuan, and 8.467 billion yuan respectively, with net profits expected to be 1.832 billion yuan, 2.179 billion yuan, and 2.653 billion yuan [4][10] - The company anticipates a recovery in demand and accelerated AI implementation, maintaining a "Buy" rating [3][5]