Kingsoft Office(SH:688111) Xinda Securities·2025-08-27 07:16Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a significant recovery in revenue growth, with a 10.12% year-on-year increase in revenue for the first half of 2025, reaching 2.657 billion yuan. The net profit attributable to shareholders increased by 3.57% to 747 million yuan, while the net profit excluding non-recurring items grew by 5.77% to 727 million yuan. Operating cash flow also saw a notable increase of 17.51% [1][2] - The launch of WPS AI 3.0 marks a transition from a "tool-based" approach to a "collaborative intelligent agent" model, enhancing the integration of AI with office software. The monthly active users of WPS AI reached 29.51 million, a 50% increase compared to the entire year of 2024 [2] - The personal business segment of WPS showed steady growth, with revenue of 1.748 billion yuan in the first half of 2025, up 8.4% year-on-year. The number of annual paid personal users reached 41.79 million, reflecting a 9.54% increase [2] - The company is increasing its investment in AI research and development, with R&D expenses rising by 18.7% to 959 million yuan in the first half of 2025. The R&D personnel accounted for approximately 66% of the total workforce [2] - Earnings per share (EPS) forecasts for 2025-2027 are projected at 4.06, 4.77, and 5.69 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 79.11, 67.29, and 56.38 [2][3] Financial Summary - For the fiscal year 2023, total revenue is projected at 4.556 billion yuan, with a year-on-year growth rate of 17.3%. By 2027, revenue is expected to reach 8.409 billion yuan, reflecting a growth rate of 20.5% [3][4] - The net profit attributable to shareholders is forecasted to grow from 1.318 billion yuan in 2023 to 2.636 billion yuan in 2027, with a compound annual growth rate of 19.3% [3][4] - The gross margin is expected to remain stable around 85% over the forecast period [3][4]