Kingsoft Office(688111) Guolian Securities·2024-10-28 09:00Investment Rating - The investment rating for the company is "Buy (Maintain)" [4] Core Insights - The company reported a revenue of 3.627 billion yuan for the first nine months of 2024, representing a year-on-year growth of 10.90%. The net profit attributable to the parent company was 1.04 billion yuan, up 16.41% year-on-year [2][6] - The personal subscription and institutional authorization businesses are showing steady growth, while international business faces challenges [6] - Continuous investment in R&D, particularly in AI applications, is expected to enhance user engagement and revenue growth [6] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 1.214 billion yuan in Q3, a year-on-year increase of 10.53%. The net profit for Q3 was 318 million yuan, up 8.33% year-on-year [2][6] - The gross margin for the first nine months was 85.10%, slightly down by 0.55 percentage points year-on-year, while Q3 saw a gross margin of 85.47%, an increase of 0.66 percentage points [2][6] - The company’s R&D expenses for the first three quarters were 1.262 billion yuan, reflecting a year-on-year increase of 17.26%, with an R&D expense ratio of approximately 34.78% [6] Business Segments - Domestic personal subscription revenue reached 762 million yuan in Q3, a year-on-year increase of 17.24%. Institutional subscription revenue was 248 million yuan, up 0.02% year-on-year, while institutional authorization revenue was 143 million yuan, up 8.97% year-on-year [6] - The number of monthly active devices for the company's main products reached 618 million, a year-on-year growth of 4.92% [6] Future Projections - Revenue projections for 2024-2026 are 5.261 billion yuan, 6.175 billion yuan, and 8.119 billion yuan, with year-on-year growth rates of 15.48%, 17.38%, and 31.47% respectively. Net profit projections for the same period are 1.517 billion yuan, 1.775 billion yuan, and 2.318 billion yuan, with growth rates of 15.11%, 17.03%, and 30.59% respectively [6][7]