Kingsoft Office(688111) 国投证券·2024-04-24 14:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 374.25 CNY for the next six months [5]. Core Views - The company reported a significant increase in net profit for Q1 2024, with a year-on-year growth of 37.31%, driven by robust performance in both B and C-end subscription services [3][9]. - The launch of the enterprise version of WPS AI is expected to enhance the company's position in the B-end market, potentially creating new models and scenarios for AI applications [9]. Financial Performance - In Q1 2024, the company achieved an operating revenue of 1.225 billion CNY, representing a year-on-year increase of 16.54%. The net profit attributable to shareholders was 367 million CNY, up 37.31% year-on-year, while the net profit excluding non-recurring items was 352 million CNY, reflecting a growth of 40.56% [2][3]. - The domestic personal office service subscription revenue reached 734 million CNY, growing by 24.8% year-on-year, attributed to enhanced user engagement and conversion [3]. - The domestic institutional subscription and service business generated 242 million CNY, marking a year-on-year increase of 13.57% [3]. - The company has set ambitious revenue growth targets for 2024, aiming for a minimum of 10% growth in overall revenue and 15% growth in institutional subscription revenue [8][9]. Product Development - The enterprise version of WPS AI includes three main products: AI Hub, AI Docs, and Copilot Pro, aimed at improving office automation and data management for enterprise clients [4][9]. - The company is transitioning its institutional subscription sales model to better serve the B-end market, with the recent launch of the WPS 365 productivity platform [3][4]. Market Position - The company is recognized as a leading player in the domestic office service software market, with a strong focus on AI integration to enhance productivity and operational efficiency [9].