Investment Rating - The report maintains a "Buy" rating for Kingsoft Software [3][5] Core Views - Kingsoft Software continues to experience steady revenue growth, with Q1 revenue reaching 2.34 billion RMB, a year-on-year increase of 9%. The office and gaming segments contribute 56% and 44% to the total revenue, respectively [1] - The company's gross margin for the quarter is approximately 82%, reflecting a 1 percentage point increase year-on-year [1] - R&D expenses for the quarter are around 830 million RMB, up 16% year-on-year, primarily due to investments in AI capabilities and new game categories [1] - The report forecasts revenue growth driven by both office and gaming segments, estimating revenues of 11.4 billion, 12.9 billion, and 14.6 billion RMB for 2025, 2026, and 2027, respectively [3] Summary by Sections Office Segment - Kingsoft Office recorded Q1 revenue of 1.301 billion RMB, a year-on-year increase of 6.22%. The personal business segment generated 857 million RMB, growing by 10.86% [2] - WPS 365 business revenue reached 151 million RMB, marking a significant year-on-year growth of 62.59% [2] - WPS software business revenue declined by 20.99% to 262 million RMB, mainly due to new procurement processes affecting sales [2] Gaming Segment - The gaming and other business revenue for Q1 was approximately 1.04 billion RMB, a year-on-year increase of 14%, driven by contributions from games like "Dust White Zone" and "Jian Wang 3" [2] - The new game "Limitless Machine" launched on July 2, has received positive feedback, ranking fifth on Steam's global wishlist [2] Financial Projections - The report projects net profits for 2025, 2026, and 2027 to be 1.88 billion, 2.46 billion, and 2.85 billion RMB, respectively, with corresponding growth rates of 21%, 31%, and 16% [4][3] - The estimated P/E ratio for 2026 is 17.4, with a target valuation of approximately 49.1 billion RMB, corresponding to a target price of around 40 HKD [3]

Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - The report highlights the importance of the upcoming launch of the game "Limitless Machine" and the company's focus on AI, collaboration, and internationalization in its office software segment [1][8] - Kingsoft's revenue for Q1 2025 was 2.338 billion yuan, showing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment's revenue was 1.037 billion yuan, contributing 44.33% to total revenue, with expectations for continued performance from existing titles and the upcoming launch of "Limitless Machine" [8] - The office software segment generated 1.301 billion yuan, accounting for 55.67% of total revenue, driven by growth in WPS personal and WPS 365 services [8] Financial Projections - Total revenue projections for Kingsoft are as follows: 10.318 billion yuan in 2024, 11.669 billion yuan in 2025, 13.149 billion yuan in 2026, and 14.721 billion yuan in 2027, with year-on-year growth rates of 20.91%, 13.09%, 12.68%, and 11.96% respectively [1] - Net profit projections are 1.552 billion yuan in 2024, 1.867 billion yuan in 2025, 2.304 billion yuan in 2026, and 2.735 billion yuan in 2027, with year-on-year growth rates of 220.94%, 20.32%, 23.41%, and 18.70% respectively [1] - The report forecasts EPS of 1.33 yuan for 2025, 1.65 yuan for 2026, and 1.95 yuan for 2027, corresponding to P/E ratios of 24, 20, and 17 times respectively [1][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the focus on the upcoming launch of the game "解限机" and the company's emphasis on AI, collaboration, and internationalization in its office software business [1][8] - The company achieved a total revenue of 2.338 billion yuan in Q1 2025, representing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment showed stable operations with expectations for the performance of "解限机" upon its launch, while the office software segment is seeing growth driven by WPS personal and WPS 365 services [8] Financial Performance Summary - Total revenue projections for the company are as follows: - 2023: 8.547 billion yuan - 2024: 10.318 billion yuan (up 20.91% YoY) - 2025: 11.669 billion yuan (up 13.09% YoY) - 2026: 13.149 billion yuan (up 12.68% YoY) - 2027: 14.721 billion yuan (up 11.96% YoY) [1] - Net profit attributable to the parent company is projected as follows: - 2023: 483.46 million yuan - 2024: 1,551.61 million yuan (up 220.94% YoY) - 2025: 1,866.88 million yuan (up 20.32% YoY) - 2026: 2,303.83 million yuan (up 23.41% YoY) - 2027: 2,734.62 million yuan (up 18.70% YoY) [1] - The report maintains previous earnings forecasts, with expected EPS for 2025-2027 being 1.33, 1.65, and 1.95 yuan respectively, corresponding to current P/E ratios of 25, 20, and 17 times [1][8]