Kingsoft Office(SH:688111) Minsheng Securities·2025-10-30 03:42Investment Rating - The report maintains a "Recommended" rating for Kingsoft Office (688111.SH) [4][7] Core Insights - Kingsoft Office's revenue for the first three quarters of 2025 reached 4.178 billion yuan, a year-on-year increase of 15.21%, while the net profit attributable to shareholders was 1.178 billion yuan, up 13.32% year-on-year. In Q3 2025, the company achieved revenue of 1.521 billion yuan, a growth of 25.33%, and a net profit of 431 million yuan, increasing by 35.42% year-on-year [1] - The WPS personal business showed strong revenue resilience, with WPS365 and WPS software businesses experiencing robust growth driven by AI capabilities. The company has successfully built an integrated office application service system combining cloud, collaboration, and AI, creating a new intelligent office model [1][2] - The WPS365 business generated revenue of 201 million yuan, a significant increase of 76.61%, while the WPS software business achieved revenue of 391 million yuan, growing by 50.52%. The acceleration of government and enterprise digital transformation projects has contributed to this strong performance [2][3] - The AI capabilities of Kingsoft Office are evolving from tool-based applications to collaborative intelligent agents, enhancing high-value business lines. The launch of native Office intelligent agents "WPS Lingxi" and "WPS Knowledge Base" marks a significant advancement in AI integration [4] Financial Forecasts - Revenue projections for Kingsoft Office from 2025 to 2027 are estimated at 6.109 billion yuan, 7.295 billion yuan, and 8.717 billion yuan, respectively. The earnings per share (EPS) are forecasted to be 4.12 yuan, 5.16 yuan, and 6.23 yuan for the same period. The price-to-earnings (PE) ratios are expected to be 82X, 65X, and 54X, respectively, based on the closing price on October 29, 2025 [4][6]