Kingsoft Office(SH:688111) Huachuang Securities·2024-03-21 16:00Investment Rating - The report maintains a "Strong Buy" rating for Kingsoft Office (688111) with a target price of 400.7 CNY, compared to the current price of 332.07 CNY [2]. Core Insights - Kingsoft Office reported a robust revenue growth of 17.27% year-on-year, reaching 4.556 billion CNY in 2023, with a net profit of 1.318 billion CNY, reflecting a 17.92% increase [2]. - The subscription business showed significant performance, with individual paid users increasing by 18.43% to 35.49 million, and revenue from personal office service subscriptions growing by 29.42% to 2.653 billion CNY [2]. - The company is investing heavily in AI product development, with R&D expenses of 1.472 billion CNY in 2023, a 10.60% increase, and plans to commercialize WPS AI, which is expected to drive future growth [2]. Financial Summary - Total revenue for 2023 was 4,556 million CNY, with a year-on-year growth rate of 17.3% projected for 2024 [8]. - The net profit for 2023 was 1,318 million CNY, with a forecasted growth of 26.9% for 2024 [8]. - The gross margin for 2023 was 85.3%, with a slight increase of 0.3 percentage points year-on-year, while the net margin was 28.9% [8]. - The company expects EPS (Earnings Per Share) to grow from 2.85 CNY in 2023 to 3.62 CNY in 2024, reflecting a strong growth trajectory [8].