Investment Rating - The report maintains a "Strong Buy" rating for Kingsoft Office (688111) [2][4]. Core Views - Kingsoft Office has upgraded its WPS 365 to a global one-stop AI collaborative office platform, introducing new products such as WPS Lingxi Enterprise Edition and Team Space, enhancing its AI core products [2]. - The company is positioned as a leader in the domestic office software market and AI office solutions, leveraging its WPS ecosystem and AI technology to strengthen its market dominance [8]. - The report forecasts significant revenue growth, with expected revenues of 60.49 billion, 71.62 billion, and 85.05 billion yuan for 2025, 2026, and 2027 respectively, reflecting growth rates of 18.1%, 18.4%, and 18.7% [8][10]. Company Overview - Kingsoft Office has a total share capital of 46,317.93 million shares and a total market value of 1,414.78 billion yuan [5]. - The company has served over 1 million enterprise clients and more than 18,000 leading government and enterprise clients [8]. - In the 2024 Fortune Global 500 list, 90% of the 133 Chinese companies have adopted WPS 365 for efficiency improvements [8]. Financial Projections - The projected total revenue for Kingsoft Office is 5,121 million yuan for 2024, with a year-on-year growth of 12.4% [10]. - The net profit attributable to the parent company is expected to be 1,645 million yuan in 2024, with a growth rate of 24.8% [10]. - The report estimates earnings per share (EPS) to be 3.55 yuan in 2024, with a projected price-to-earnings (P/E) ratio of 91 [10].

Core Viewpoint - The article emphasizes the untapped value of private data in the AI era, highlighting its potential to enhance business operations and decision-making processes [1][4][6]. Group 1: AI and Collaboration Software - In the AI era, collaborative office software is evolving into a "knowledge container" and a "digital employee carrier," aiming to help organizations build their unique "enterprise brain" [2][7]. - The integration of various technologies such as OCR, LLM, and NLP in WPS 365 aims to unify data management and transform scattered documents into reusable knowledge [9][10]. Group 2: Importance of Private Data - Private data, which includes internal reports, meeting records, and business contracts, is crucial for building competitive advantages, yet it often remains underutilized within organizations [6][10]. - The activation of private data is essential, as it serves as the "fuel" for AI, enabling organizations to leverage their unique knowledge assets effectively [6][12]. Group 3: Development of Enterprise Brain - The construction of the "enterprise brain" involves three steps: understanding data, understanding the organization, and understanding business [12][13]. - WPS 365 aims to facilitate a new working model where digital employees assist in the entire digital process, creating a positive feedback loop between knowledge creation and digital assistance [13][16]. Group 4: Market Position and Growth - WPS 365 has shown significant revenue growth, achieving over 60% year-on-year growth in the first three quarters of 2025, indicating its role as a new growth engine for the company [16][17]. - The company's focus on integrating various tools into a single platform provides a competitive edge, particularly in sectors with high data security and governance needs [10][17].