KINGSOFT(HK:03888) Soochow Securities·2024-03-23 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a total revenue of 2.31 billion yuan in Q4 2023, representing a year-over-year increase of 9.36% and a quarter-over-quarter increase of 12.16%. The net profit attributable to the parent company was 205 million yuan, with a year-over-year increase of 339.60% and a quarter-over-quarter increase of 621.03%, which aligns with previous expectations [2][3] Revenue Breakdown - Gaming Business: The revenue from online games and other sources was 1.024 billion yuan in Q4 2023, showing a year-over-year increase of 0.21% and a quarter-over-quarter increase of 6.56%. The revenue contribution from the newly launched game "Sword of the World: Origin" is expected to enhance performance, while the flagship game "Sword Network 3" continues to achieve record annual revenue [3] - Office Business: The revenue from office software and services was 1.286 billion yuan in Q4 2023, reflecting a year-over-year increase of 17.94% and a quarter-over-quarter increase of 17.06%. Growth was driven by increased subscriptions from both individual and institutional clients, with a notable rise in monthly active devices for the main office software product [3] Financial Forecasts - The report adjusts the earnings forecasts for the company, projecting EPS of 0.84 yuan for 2024, 0.96 yuan for 2025, and 1.19 yuan for 2026. The corresponding P/E ratios at the current stock price are expected to be 27, 24, and 19 times respectively [3][9]