Kingsoft Office(SH:688111) Soochow Securities·2024-02-27 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2023 performance report meets expectations, with total revenue of 4.556 billion (up 17.27% year-on-year) and net profit attributable to shareholders of 1.319 billion (up 18.03% year-on-year) [2][3] - The rapid growth of subscription revenue, particularly in the C-end and B-end segments, is expected to continue, driven by the upcoming commercialization of WPS AI [3][9] - Concerns regarding Microsoft's Copilot entering the Chinese market are deemed overstated, as the overlap between WPS's customer base and Microsoft's target audience is minimal [4][9] Revenue and Profit Forecasts - Total revenue forecasts for 2023-2025 are adjusted to 45.56 billion, 57.10 billion, and 77.45 billion respectively, with net profit forecasts of 13.19 billion, 17.00 billion, and 24.38 billion [9][10] - The C-end subscription revenue for 2023 is projected at 26.53 billion (up 29.42% year-on-year), while B-end subscription revenue is expected to reach 9.57 billion (up 38.36% year-on-year) [3][10] Financial Metrics - The company's earnings per share (EPS) for 2023 is estimated at 2.86, with a price-to-earnings (P/E) ratio of 91.50 [2][10] - The company's total market capitalization is approximately 120.72 billion [6][10] - The company's asset-liability ratio stands at 25.76% [7]