Investment Rating - The report maintains a **Buy** rating for Kingsoft Corporation (3888 HK) with a target price of HKD 30.00, representing a potential upside of **46.0%** from the current closing price of HKD 20.55 [1] Core Views - Kingsoft's Q2 2024 revenue increased by **13% YoY** to RMB 2.47 billion, with adjusted operating profit up **14% YoY** to RMB 880 million, driven by better-than-expected gaming performance [1] - Gaming revenue grew **20% YoY**, while WPS revenue growth slowed to **6% YoY** due to the transition of B2B business to SaaS model [1] - The launch of **JX3: Infinite** mobile game in June 2024 achieved over **11 million daily active users**, with **62% being returning players**, expected to drive significant revenue growth in Q3 2024 [1] - WPS upgraded its AI strategy with the release of **WPS AI 2.0** in July 2024, enhancing user experience and stickiness for both individual and enterprise customers [1] Financial Performance Summary - Q2 2024 revenue breakdown: Gaming contributed RMB 1.286 billion (+20% YoY), while WPS contributed RMB 1.188 billion (+6% YoY) [5] - Adjusted operating profit margin improved to **35%** in Q2 2024, up from 32% in Q1 2024 [5] - WPS's contract liabilities increased by **24% YoY**, indicating a solid foundation for long-term growth despite the short-term slowdown in revenue growth [1] Business Segment Analysis - WPS revenue growth slowed to **6% YoY** in Q2 2024, compared to **17% YoY** in Q1 2024, due to the SaaS transition [1] - WPS subscription revenue breakdown: Personal subscriptions grew **20% YoY**, while institutional licensing and subscriptions declined by **2%** and **27% YoY**, respectively [1] - Gaming revenue growth was driven by mobile games, partially offset by a decline in **JX3** PC game revenue due to a high base in the previous year [1] Future Outlook - The report expects gaming revenue to accelerate in Q3 2024, driven by the strong performance of **JX3: Infinite** and the upcoming expansion pack in October 2024 [1] - Full-year gaming revenue is expected to achieve **double-digit growth**, supported by the strong performance of mobile games [1] - WPS's AI upgrades and SaaS transition are expected to enhance long-term growth prospects, despite short-term revenue headwinds [1] Financial Forecasts - 2024E revenue forecast adjusted to RMB 9.668 billion, a **2% decrease** from the previous forecast of RMB 9.882 billion [4] - 2025E revenue forecast adjusted to RMB 10.586 billion, a **6% decrease** from the previous forecast of RMB 11.304 billion [4] - Adjusted operating profit margin is expected to improve to **35%** in 2025E, up from **31%** in the previous forecast [4]

Investment Rating - The report assigns a "Buy" rating to Kingsoft Corporation (3888) with a target price of HKD 28, indicating a potential upside of 30.5% from the current price [1][2]. Core Insights - Kingsoft's revenue for the first half of 2024 reached RMB 4.61 billion, representing an 11% year-on-year growth. The office software and services segment contributed RMB 2.41 billion, also up 11%, driven by growth in personal office subscriptions, despite a decline in institutional licensing [1]. - The gaming segment generated RMB 2.2 billion, a 10% increase, attributed to successful game content innovations, particularly for "Jian Wang 3" and "Chen Bai Jin Qu" [1]. - The company reported a significant increase in net profit attributable to shareholders, reaching RMB 680 million, a 171.7% year-on-year growth [1]. - Kingsoft Office is enhancing its AI collaboration strategy, with a focus on the WPS 365 platform aimed at organizational clients, integrating upgraded versions of WPS Office and AI solutions [1]. - The gaming business is adopting a premium strategy, with the mobile version of "Jian Wang 3" launched in June 2024, achieving a monthly active user count of 11.46 million in its first month [1]. Financial Summary - For the fiscal year ending December 31, 2024, total revenue is projected to be RMB 9.65 billion, reflecting a 13% increase from 2023 [3]. - The net profit for 2024 is forecasted at RMB 1.17 billion, indicating a 142.8% growth compared to 2023 [3]. - The report anticipates continued growth in profits for 2025 and 2026, with projections of RMB 1.5 billion and RMB 1.8 billion, respectively [3][4]. Key Financial Metrics - The gross margin for the first half of 2024 was 82%, slightly down from the previous year [1]. - The company had cash and cash equivalents of RMB 19.7 billion as of June 2024, with a net operating cash inflow of RMB 1.37 billion for the first half [1]. - The diluted earnings per share for 2024 is expected to be RMB 0.86, with a projected price-to-earnings ratio of 24.9 based on the target price [3].

Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - Kingsoft Corporation's Q2 2024 performance exceeded expectations with total revenue of 2.474 billion yuan, a year-on-year increase of 12.78% and a quarter-on-quarter increase of 15.77%. The net profit attributable to shareholders reached 393 million yuan, showing a significant year-on-year increase of 587.84% and a quarter-on-quarter increase of 38.23% [2][3] Summary by Sections Gaming Business - The gaming segment achieved revenue of 1.286 billion yuan in Q2 2024, reflecting a year-on-year growth of 19.89% and a quarter-on-quarter growth of 41.09%. The increase is primarily driven by the performance of games like "Dust White Zone" and "Jian Wang 3: Wujie," leading to an upward revision of the annual revenue guidance from a 10% year-on-year increase to over 20% [3][4] Office Business - The office segment generated revenue of 1.188 billion yuan in Q2 2024, with a year-on-year increase of 5.97% but a quarter-on-quarter decline of 3.07%. The growth in personal office subscriptions continues, with a total of 38.15 million paid users, up 15% year-on-year. The company has also upgraded its AI strategy, launching WPS AI 2.0, which includes new AI office assistants for personal and enterprise users [3][4] Financial Forecast and Valuation - The report has revised the EPS forecasts for 2024-2026 to 0.99, 1.13, and 1.40 yuan respectively, reflecting an increase from previous estimates. The corresponding P/E ratios at the current stock price are projected to be 19, 16, and 13 times [4][9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4]. Core Views - The gaming sector is entering a product upcycle, and the WPS B-end subscription is expected to return to growth, driving overall revenue recovery. The net profit forecasts for 2024-2026 have been raised to 1.228 billion, 1.412 billion, and 1.802 billion respectively, with year-on-year growth rates of 153.9%, 15.0%, and 27.6% [4][5]. - The company's Q2 2024 revenue reached 2.474 billion, a year-on-year increase of 12.8%, aligning with Bloomberg consensus expectations. The gaming business saw a significant recovery, with a year-on-year growth rate of 19.9% in Q2 2024, driven by the launch of "Jian Wang 3: Wujie" and contributions from "Chen Bai Jin Qu" [4][5]. - The B-end revenue decline in Q2 2024 led to a slowdown in WPS growth, but the B-end subscription business is expected to return to growth. The personal subscription revenue grew by 19.8%, while institutional subscription revenue declined by 2% due to a shift from annual to monthly payment models [4][5]. Financial Summary and Valuation Metrics - Revenue (in million) for 2024E is projected at 9,751, with a year-on-year growth of 14.3%. Net profit for 2024E is expected to be 1,228 million, reflecting a significant turnaround from a loss of 6,048 million in 2022 [5]. - The gross margin is projected to be 82.6% in 2024E, with a net margin of 12.6%. The return on equity (ROE) is expected to reach 6.22% in 2024E [5]. - The diluted EPS for 2024E is forecasted at 0.92, with corresponding P/E ratios of 20.9, 18.1, and 14.2 for 2024-2026 [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任 何責任。 Kingsoft Corporation Limited 金山軟件有限公司 （於開曼群島持續經營的有限公司） （股份代號：03888） （可換股債券代號：40210） 截至二零二四年六月三十日止三個月及六個月 業績公告 金山軟件有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬公司（「本 集團」或「金山」）截至二零二四年六月三十日止三個月及六個月之未經審計業績。該等 中期業績已由本公司審核委員會（「審核委員會」）審閱。 1 財務資料 簡明合併損益表 截至二零二四年六月三十日止三個月及六個月 | | | 截至六月三十日止三個月 | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | --- | --- | | | | 二零二四年 | 二零二三年 | 二零二四年 | 二零二三年 | | | | 人民幣千元 | 人民幣千元 | 人民幣千元 | 人民幣千 ...

2024年5月27日 公司研究 1Q24《尘白禁区》流水表现超预期，WPS AI 商业化开启 —— 金山软件（3888.HK）1Q24 业绩点评 要点 买入（维持） 当 前价：25.60港元 事件：公司发布1Q24业绩，实现收入21.37亿元，同比增长8%，环比下 滑7%；1Q24实现经营利润6.02亿元，同比增长31%，对应OP Margin提 升4.8pcts至28.2%，带动归母净利润提升至2.85亿元, 同比大涨48%。 作者 分析师：付天姿 WPS AI初步开启商业化，主要产品月活设备数突破6亿。1Q24办公业务实 执业证书编号：S0930517040002 现收入12.25亿元，同比增长17%，其中: 1) C端订阅营收同比增长25%至 021-52523692 7.35 亿元，主要受益于会员权益不断丰富、带动用户粘性和付费转化率的提 futz@ebscn.com 升，截至 3M24 公司主要办公产品月活设备数达 6.02 亿，同比增长 2.2%， 联系人：黄铮 其中WPS Office PC 版月活设备数达 2.7 亿，同比增长7.1%。2) B端订阅营 021-52523825 收同比增长 1 ...

2024 年 05 月 25 日 公司研究 评级：买入 (维持 ) 研究所： [Table_Title] 《剑网 》全平台版上线在即， 稳步开 3 WPS AI 证券分析师： 陈梦竹 S0350521090003 chenmz@ghzq.com.cn 证券分析师： 尹芮 S0350522110001 启商业化 yinr@ghzq.com.cn ——金山软件（ ） 财报点评 3888.HK 2024Q1 最近一年走势 事件 : 5月22日，公司公告2024Q1季报，实现营收21.37亿元（YoY+8.5%， QoQ-7.5%），营业利润6.02亿元，净利润5.22亿元，归母净利润2.85 亿元。 我们的观点：  1、主要财务指标分析：2024Q1 实现营业收入 21.37 亿元 （YoY+8.5%，QoQ-7.5%），其中办公软件及服务业务12.25亿元 相对恒生指数表现 2024/05/24 （YoY+16.5%，QoQ-4.7%），网络游戏及其他业务 9.12 亿元 表现 1M 3M 12M （YoY-0.8%，QoQ-11.0%）。毛利润 17.41 亿元（YoY+7.1%， 金山软件 -0.6% 17 ...

计算机/软件开发 公 司 研 金山软件（03888.HK） 游戏增速有望回升，WPS AI 商业化进展顺利 究 2024年05月24日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 日期 2024/5/23 证 书编号：S0790521110001 证书编号：S0790123080037  游戏业务增速有望于2024Q2回升，WPS AI进展顺利有利平台估值提升 港 当前股价(港元) 25.950 考虑到游戏业务增速超出我们此前预期，我们上调 2024-2026 净利润预测至 股 一年最高最低(港元) 35.150/18.400 公 9.23/11.66/15.83 亿元（前值 7.86/11.59/15.76 亿元），同比增速分别为 司 总市值(亿港元) 347.51 91.0%/26.3%/35.8%，对应2024-2026年摊薄后EPS 0.7/0.9/1.2元，当前股价对应 信 流通市值(亿港元) 347.51 息 2024-2026年34.3/27.2/20.0倍PE。游戏盈利改善、WPS ...

[Table_Page] 公告点评|软件与服务 证券研究报告 [【Table广_Title发] 计算机&海外】金山软件（03888.HK） [公Tab司le_评Inve级st] 买入 当前价格 25.95港元 《尘白禁区》超预期，关注 WPS AI 商业化 合理价值 38.73港元 前次评级 买入 [ 核Tab 心le_S 观umm 点ary ：] 报告日期 2024-05-24 ⚫ 公司披露24Q1业绩公告，游戏稳健、办公维持高增，盈利能力提升。 [相Tab对le_P市icQ场uote表] 现 收入同比+8.5%至21.37亿元，运营利润率同比+4.8pct至28.2%，归 母净利大幅增至2.85亿元，主要是销售费用率下降及金山云减亏。 40% 24% ⚫ 游戏：《剑网3》稳健，《尘白禁区》超预期。24Q1 收入同比-0.8%至 8% 9.12 亿元，《剑网 3》整体稳健；《尘白禁区》Q1 DAU 和流水环比显 -8%03/23 05/23 07/23 09/23 11/23 01/24 03/24 著增长，截至目前在iOS免费/畅销榜最高排到第2/4位，助力公司打 -24% 开二次元赛道。储备游戏：《剑网 ...

计算机/软件开发 公 司 研 金山软件（03888.HK） 游戏增速有望回升，WPS AI 商业化进展顺利 究 2024年05月24日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 日期 2024/5/23 证 书编号：S0790521110001 证书编号：S0790123080037  游戏业务增速有望于2024Q2回升，WPS AI进展顺利有利平台估值提升 港 当前股价(港元) 25.950 考虑到游戏业务增速超出我们此前预期，我们上调 2024-2026 净利润预测至 股 一年最高最低(港元) 35.150/18.400 公 9.23/11.66/15.83 亿元（前值 7.86/11.59/15.76 亿元），同比增速分别为 司 总市值(亿港元) 347.51 91.0%/26.3%/35.8%，对应2024-2026年摊薄后EPS 0.7/0.9/1.2元，当前股价对应 信 流通市值(亿港元) 347.51 息 2024-2026年34.3/27.2/20.0倍PE。游戏盈利改善、WPS ...