Kingsoft Office(SH:688111) Guoyuan Securities·2025-10-29 10:20Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [5][7]. Core Insights - The company has experienced rapid growth in performance, with significant improvements in profitability driven by the acceleration of domestic innovation and technology [2][4]. - For the first three quarters of 2025, the company achieved a revenue of 4.178 billion yuan, a year-on-year increase of 15.21%, and a net profit attributable to shareholders of 1.178 billion yuan, up 13.32% year-on-year [2]. - The third quarter alone saw a revenue of 1.521 billion yuan, representing a 25.33% year-on-year growth, and a net profit of 431 million yuan, which is a 35.42% increase year-on-year [2]. Business Performance - The WPS personal business showed steady growth, generating 899 million yuan in revenue, an increase of 11.18% year-on-year. The global monthly active devices for WPS Office reached 669 million, up 8.83% year-on-year [3]. - The WPS 365 business reported a revenue of 201 million yuan, a remarkable growth of 71.61% year-on-year, while the WPS software business generated 391 million yuan, reflecting a 50.52% increase year-on-year [4]. - The acceleration of government and enterprise digital transformation projects has significantly contributed to the strong growth of the company's software business [4]. Financial Forecast and Valuation - The company is projected to continue its growth trajectory, with adjusted revenue forecasts for 2025-2027 set at 5.973 billion, 6.867 billion, and 7.718 billion yuan, respectively. The net profit forecasts are adjusted to 1.809 billion, 2.116 billion, and 2.420 billion yuan for the same period [5][8]. - The earnings per share (EPS) are expected to be 3.91, 4.57, and 5.22 yuan, with corresponding price-to-earnings (P/E) ratios of 86.33, 73.81, and 64.55 [5][8].