Kingsoft Office(SH:688111) Dongguan Securities·2025-09-01 12:21Investment Rating - The report maintains a "Buy" rating for Kingsoft Office (688111) [3][7]. Core Views - Kingsoft Office's WPS 365 business is experiencing rapid growth, and the launch of WPS AI 3.0 marks the beginning of the intelligent office era [3][5]. - The company reported a revenue of 2.657 billion yuan for H1 2025, a year-on-year increase of 10.12%, and a net profit of 747 million yuan, up 3.57% year-on-year [4][5]. - The operating cash flow improved significantly, with a net cash flow from operating activities of 738 million yuan, an increase of 17.51% year-on-year [5]. Summary by Sections Financial Performance - In H1 2025, Kingsoft Office achieved a revenue of 2.657 billion yuan, a 10.12% increase year-on-year, and a net profit of 747 million yuan, reflecting a 3.57% growth [4][5]. - For Q2 2025, the company reported a revenue of 1.356 billion yuan, a 14.14% increase year-on-year, but a net profit decline of 2.83% to 344 million yuan [5]. Business Segments - The personal business segment saw a revenue of 1.748 billion yuan in H1 2025, an 8.38% increase year-on-year, with a global monthly active device count of 651 million, up 8.56% [5]. - WPS 365 business revenue reached 309 million yuan, a significant growth of 62.27% year-on-year, with new benchmark clients including China Unicom and China Three Gorges Corporation [5]. Product Development - The launch of WPS AI 3.0 introduced several AI features, enhancing user experience and increasing monthly active users to 29.51 million, a nearly 50% increase from the end of 2024 [5]. - The company continues to strengthen its market position in the domestic and overseas markets, particularly in the central and state-owned enterprise sectors [5]. Earnings Forecast - The earnings forecast for Kingsoft Office indicates total revenue of 5.974 billion yuan for 2025, with net profit projected at 1.789 billion yuan, leading to an EPS of 3.84 yuan [6].