Kingsoft Office(688111)2025-03-24 06:34Investment Rating - The report maintains a "Buy-A" rating for the company [1][8] Core Views - The company has shown strong growth in its WPS 365 business and is expected to accelerate the commercialization of its AI products [1][8] - The company achieved a revenue of 5.121 billion yuan in 2024, representing a year-on-year growth of 12.40%, and a net profit of 1.645 billion yuan, up 24.84% year-on-year [3][8] - The report highlights the robust performance of WPS personal business and the significant growth of WPS 365, with a revenue increase of 149.33% [4][8] Financial Performance - In 2024, the company reported a gross margin of 85.14%, a slight decrease of 0.15 percentage points from the previous year [5] - The net profit margin improved to 32.32%, an increase of 3.47 percentage points year-on-year [5] - The company invested 16.96 billion yuan in R&D, accounting for approximately 33% of its revenue, with a 13% increase in R&D personnel [5] Business Segments - WPS personal business generated 3.283 billion yuan in revenue, growing 18.00% year-on-year, driven by the continuous upgrade of WPS AI [4][8] - The WPS 365 business achieved a revenue of 437 million yuan, reflecting a high growth rate of 149.33% [4][8] - The WPS software business saw a revenue decline of 8.56%, with expectations for more customers to transition to the WPS 365 platform [4][8] AI Development - The company launched WPS AI 2.0, which includes various AI tools aimed at enhancing user experience and business efficiency [6][8] - The monthly active users of WPS AI reached 19.68 million in the domestic market, indicating strong user engagement [6][8] Future Projections - The company forecasts EPS of 4.13, 5.08, and 6.13 for the years 2025, 2026, and 2027, respectively [8] - Corresponding P/E ratios are projected to be 74.94, 60.96, and 50.51 for the same years [8]