Beijing Kingsoft Office Software Inc(688111) (688111)
Event: on December 22, 2021, Jinshan digital office conference was held in Beijing. The theme of the conference was "truly open and fully enabled", and Jinshan digital office platform and three new products were released.
Policies and industrial trends define the direction of digital office, and the company releases platforms and products to grasp the key points of digital office. The state has frequently issued policies to clarify the direction of digital transformation of state-owned enterprises. Digitization helps enterprises reduce costs, increase efficiency and improve production and service efficiency. Office platform and software are related to the office core of enterprise digital operation and cooperation, and are the focus of enterprises to realize digital office. Based on the demand of digital office, the company has newly released an office platform and three new products. Among them, Jinshan digital office platform is the two middle platforms of documents and cooperation formed by the company through cloud and API transformation based on its own product matrix; The three products are Jinshan collaboration, light dimension table and Jinshan knowledge base: Jinshan collaboration can achieve efficient integration with documents, support document sessions, and ensure the safe flow of documents to prevent disclosure. Light dimension table is an enhanced form software specially designed for multi person collaboration scenarios, which supports the rapid construction of lightweight applications. Jinshan knowledge base is a knowledge management tool for enterprises, organizations and individuals. The three products further strengthen the enterprise's digital office capacity in online document collaboration, form collaboration and data asset management, improve the enterprise circulation efficiency and strengthen the enterprise's digital asset security management. It is expected to effectively enable the enterprise's digital office in the future.
Comply with the digital trend and empower customers with digital transformation based on office scenes. As the leader of domestic office software, the company has benefited from the domestic substitution trend and the continuous improvement of government enterprise penetration. During the epidemic period, the company has grasped the trend of online office and cloud cooperation and improved the C-end user penetration and the proportion of paying users. In the future, localization and cloud are still the general trend, and the medium and long-term logic of the company is stable. In this new product launch, the company further enriched the product matrix and released Jinshan digital office platform and three new products, aiming to create a one-stop collaborative office platform that can comprehensively serve customers' digital transformation, so as to meet customers' digital needs from multiple perspectives such as content, communication, system, information security and business change, In the future, with the deepening trend of enterprise digital office, the company is expected to continue to benefit.
Profit forecast and investment rating of the company: the trend of localization, digitization and cloud is in the ascendant. We are optimistic about the company's ability to grasp industry opportunities as a leader of office software and the strategic layout made by the company to comply with the trend of enterprise digital office. We expect the net profit of the company from 2021 to 2023 to be 1.068 billion yuan, 1.427 billion yuan and 2.024 billion yuan respectively, and the corresponding EPS to be 2.32, 3.10 and 4.39 yuan respectively. The current share price corresponds to PE values of 114, 85 and 60 times from 2021 to 2023 respectively. Maintain a "strongly recommended" rating.
Risk tip: the policy implementation is less than expected, the industry development is less than expected, and the industry competition intensifies the risk.
