Beijing Kingsoft Office Software Inc(688111) (688111)
On December 22, the company held the Jinshan digital office conference. At the conference, the company launched new organization level platform products to bring safe, open and enabling digital office solutions for organization users, meet the organization’s personalized office needs, help the organization realize digital transformation and collaborative evolution, and enable both organizations and individuals.
New product release, strategic upgrading, and comprehensive cloud transformation from personal tools to organizational collaboration. The company released Jinshan digital office platform to realize the comprehensive cloud from product to platform, open API call of all products, and realize the security of the whole life cycle of office cooperation; Propose a matrix, two middle desks, three enabling scenarios and four delivery methods: a matrix integration company makes full use of the existing office modules; Two middle platforms, namely document middle platform and cooperation middle platform, open up documents and cooperation; The three enabling scenarios are full set of platform, module combination and capability embedding; The four delivery methods are public cloud, private cloud, hybrid cloud and all information creation environment. At this conference, the company released three collaboration products – Jinshan collaboration, light dimension table and Jinshan knowledge base, so as to realize chat collaboration in office process, quickly build light-weight office applications and optimize document management. We believe that the focus of the company’s work has changed to focus more on collaboration rather than the upgrading of a single tool, better enable the whole process of customers’ work and ensure safety, improve the availability of products, more meet the needs of enterprise digital transformation under the 14th five year plan, and the cloud process will be accelerated.
The original Xinchuang is suitable, the ecology is open, and a digital office value community is created. The company realizes the original Xinchuang adaptation in CPU, operating system and database, and supports most mainstream Xinchuang software and hardware: in terms of CPU, the company can adapt Kunpeng, Feiteng, haiguang, Zhaoxin and Longxin; In terms of operating system, the company can adapt to Kirin operating system, Zhongke Fangde and Tongxin UOS; In terms of database, the company is suitable for Dameng and Renmin Jincang. In addition, the company proposes ecological opening empowerment and works with domestic manufacturers to create a collaborative office value community with a completely open attitude: in terms of cloud manufacturers, the company cooperates with huaweiyun, Guizhou on cloud, Inspur cloud, China Electronics cloud, Jinshan cloud and Tencent cloud; In terms of collaboration tool manufacturers, we have reached win-win cooperation with welink, Baidu Ruliu and Feishu. For example, Baidu Ruliu’s document adopts Beijing Kingsoft Office Software Inc(688111) . We believe that the company’s adaptation to Xinchuang hardware and basic software at the bottom and joint construction of ecology with partners at the application software layer will accelerate the development and implementation of Xinchuang’s domestic substitution.
From innovation to common use, users’ online use of cloud has improved, and various indicators have increased steadily. In terms of various indicators of the company’s users, the amount of files stored by WPS cloud customers has increased significantly, from 50pb in January 2020 to 190pb in November 2021, an increase of 82%. Over the same period, the number of WPS stored files increased by 45%. The growth of storage capacity is faster than that of the number of files, indicating that users are increasingly accepting the use of software on the cloud. In the first three quarters of 2021, the number of monthly active equipment of the company’s main products was 521 million, an increase of 14.00% over the same period of last year. Among them, the number of WPS office PC monthly active devices was 206 million, an increase of 17.05% over the same period of last year; The number of mobile version monthly active devices was 311 million, an increase of 13.50% over the same period of last year; Other products of the company, such as Kingsoft Ciba, have nearly 5 million monthly active equipment; In terms of cloud documents, the number of cloud files uploaded by individuals and “WPS +” users through public cloud services reached 118.9 billion, a year-on-year increase of 50.15%, and the user stickiness increased. The improvement of various indicators shows that the company has continuously improved the adaptation of product functions and application scenarios, and the product competitiveness has been gradually enhanced.
Investment suggestion we predict that the company’s EPS from 2021 to 2023 will be 2.55/3.42/4.61, the corresponding P / E ratio will be 97 / 72 / 53 and the corresponding P / E ratio will be 33 / 23 / 17 respectively. The company’s licensing and subscription businesses are progressing smoothly. The new strategy will improve product availability. In the future, it will benefit from the opening of the alternative industry space of Xinchuang. It is optimistic about the future development of the company and maintain the “recommended” rating.
The risk indicates the risk of intensified market competition; The investment in R & D and sales plus the approximate period cost is high, and can not bring the risk of expected growth of revenue and profit; Risk of mismatch between technological innovation, product iteration and market
