Kingsoft Office(SH:688111) KAIYUAN SECURITIES·2024-04-24 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3]. Core Views - The company has a clear long-term growth path, with net profit forecasts for 2024-2026 at 1.654 billion, 2.076 billion, and 2.750 billion yuan, respectively, corresponding to EPS of 3.58, 4.50, and 5.95 yuan per share [3][9]. - The current stock price corresponds to P/E ratios of 79.8, 63.6, and 48.0 for the years 2024, 2025, and 2026, respectively [3][9]. - The continuous upgrade of the WPS AI product is expected to open up growth opportunities for the company [3]. Financial Performance Summary - In Q1 2024, the company achieved operating revenue of 1.225 billion yuan, a year-on-year increase of 16.54%, and a net profit of 367 million yuan, a year-on-year increase of 37.31% [7]. - The personal subscription revenue was 734 million yuan, up 24.80% year-on-year, while institutional subscription revenue was 242 million yuan, up 13.57% year-on-year [7]. - The company's gross profit margin was 84.80%, a decrease of 2.02 percentage points year-on-year, with improved operational efficiency reflected in reduced sales, management, and R&D expense ratios [7]. Product Development - The company launched WPS 365 on April 11, 2024, enhancing collaboration capabilities and introducing WPS AI Enterprise Edition, which includes AI Hub, AI Docs, and Copilot Pro [8].