The long-term growth path is clear, and the "buy" rating

is maintained Considering that the company's performance exceeds expectations, we slightly raise the company's 2024-2026 net profit forecast attributable to the parent company to 16.45, 2.064, and 2.542 billion yuan (the original forecast is 15.41, 19.25, and 2.416 billion yuan), and the corresponding EPS is 3.56, 4.46, and 5.50 yuan per share, respectively, and the corresponding PE of the current stock price is 97.3, 77.6, and 63.0 times. Considering the continuous upgrade of the company's WPS AI products, it is expected to open up growth space and maintain a "buy" rating.

The performance exceeded market expectations, and the growth of revenue and profit in Q4 accelerated

The company released a performance report, and it is expected to achieve operating income of 5.121 billion yuan in 2024, a year-on-year increase of 12.40%; It is estimated that the net profit attributable to the parent company will be 1.645 billion yuan, a year-on-year increase of 24.84%; It is estimated that the net profit deducted from the non-attributable parent company will be 1.556 billion yuan, a year-on-year increase of 23.30%. Among them, Q4 is expected to achieve operating income of 1.494 billion yuan, a year-on-year increase of 16.2%; It is estimated that the net profit attributable to the parent company will be 605 million yuan, a year-on-year increase of 42.7%; It is estimated that the net profit deducted from non-attributable to the parent company will be 565 million yuan, a year-on-year increase of 40.5%. The company's performance exceeded market expectations, mainly due to the steady growth of various main business income, the improvement of operational efficiency and the increase in investment income, which jointly promoted the company's profit to achieve rapid growth.



On the one hand, the company's WPS AI 2.0 adds AI writing assistant, AI reading assistant, AI data assistant, and AI design assistant to provide users with a more convenient and efficient creative experience, and effectively promote user stickiness and payment conversion. On the other hand, the company has launched the AI office assistant WPS Lingxi, whose core functions include intelligent writing, AI PPT generation, data analysis, information retrieval, document reading and overview, cloud synchronization and team collaboration.

Risk warning: the market acceptance of AI products is less than expected; The macro economy affects the ability of downstream customers to pay.