Kingsoft Office (688111): Cloud Office Industry Leader
Thirty years of ups and downs, a new chapter in the journey of the waves.Jinshan Office, 北京夜网 as the leader of the domestic cloud office industry, has been in the office field for 30 years.From the perspective of intergenerational technology, we divided the Internet into the PC era, the MI era, the AIOT era, and the evolutionary history of technology and the Internet.Facing the coming era of the Internet of Everything, we believe that, relying on the large environment of localization of office software, based on the cloud, supplemented by multiple screens and content, and empowered by AI, Jinshan Office will achieve new breakthroughs.  The PC era: Regret defeating Microsoft, but want to change.Microsoft used Windows as the breakthrough traffic entrance, and used a better product experience to gradually seize the WPS market.Facing the dilemma, the company changed its business model and laid a good B-side user base for subsequent development by launching a free personal version of WPS.  The MI era: mobile internet, cornering overtaking.As the PC Internet moved to the mobile Internet, the company took the lead in launching the WPS mobile version and made bold innovations in its business model. In addition to the traditional business office software authorization, the company launched an Internet advertising business based on platform traffic and an office software subscription service.According to China’s basic office software user size statistics, WPS Office office software users accounted for 42 of the total domestic office market users in 2018.75%, achieved the overtake of Office.  AIOT era: AI + cloud, the future can be expected.In the AIOT era when new technologies are coming, the company has not adhered to the rules due to its inherent advantages. It has laid out new technologies such as artificial intelligence, blockchain, and cloud computing in advance to create an Internet office service platform that can meet the needs of various types of office scenarios.As the company’s intelligence and cloudification become more mature, and the continuous improvement of the system, the company’s development will usher in new opportunities.  Deepening domestic applications + cloudification of office software, two major factors led to a high growth foundation.With the further deepening of domestic software applications in the party, government and military markets, the company merged the leading position of domestic office software, and the B-side software licensing business is expected to usher 天津夜网 in explosive growth.At the same time, the cloudification of office software is the general trend. Driven by the needs of users for collaborative office and online storage of documents, the company will take the cloudization business as the hand to drive the stickiness of users and the number of users that are believed to continue to increase.  Investment logic: Net profit attributable to mothers is expected in 19/20.65/6.30,000 yuan, corresponding to PE227X / 137X.Give “Highly Recommended” rating.  Risk reminders: the risk of intensified competition in the industry; the risk that the progress of investment projects does not meet expectations; the risk that policies will not meet expectations.