Investment Rating - The report maintains a "Buy-A" rating for Kingsoft Office (688111.SH) [1][9] Core Views - The company achieved a steady revenue growth of 10.12% year-on-year in the first half of 2025, with total revenue reaching 2.657 billion yuan [4] - The WPS personal business and WPS 365 business are driving overall revenue growth, with WPS 365 revenue increasing by 62.27% year-on-year [5][6] - The launch of WPS AI 3.0 has significantly increased monthly active users to 29.51 million, up from 19.68 million at the end of 2024 [7][9] Financial Performance - In the first half of 2025, the company reported a net profit of 747 million yuan, a year-on-year increase of 3.57% [4] - The gross margin for the first half of 2025 was 85.03%, an increase of 0.11 percentage points compared to the same period last year [6] - The company’s R&D expense ratio increased to 36.07%, reflecting continued investment in AI [6] Business Segmentation - WPS personal business revenue reached 1.748 billion yuan, growing by 8.38% year-on-year, with domestic revenue at 1.619 billion yuan [6] - WPS 365 business revenue was 309 million yuan, benefiting from enhanced product capabilities and new key clients [6] - WPS software revenue decreased by 2.08% year-on-year to 542 million yuan due to some clients transitioning to WPS 365 [6] Future Projections - The report projects EPS for 2025-2027 to be 3.87, 4.56, and 5.42 yuan respectively, with corresponding P/E ratios of 85.06, 72.27, and 60.77 [9][10]