FINWIRES · TerminalLIVE
FINWIRES

Beijing Kingsoft Office Software's Attributable Profit Surges in Q1

-- Beijing Kingsoft Office Software's (SHA:688111) attributable profit surged 445% to 2.20 billion yuan in the first quarter from 402.8 million yuan in the year-ago period, according to a Thursday disclosure to the Shanghai bourse.

Earnings per share at the subsidiary of Hong Kong-listed Kingsoft (HKG:0388) soared 443% to 4.72 yuan from 0.87 yuan in the prior-year period.

Kingsoft Office attributed the "significant" net profit increase to substantial investment income from its investment fund projects.

However, the company flagged possible valuation fluctuations in investment returns.

Revenue at the core unit of Kingsoft jumped 24% to 1.61 billion yuan from 1.30 billion yuan, close to the midpoint of guidance at about 1.6 billion yuan, the consensus estimate of 1.5 billion yuan, and Jefferies' estimate of 1.4 billion yuan.

The office software company's WPS Personal Business line saw revenue rise 14% to 975 million yuan.

WPS 365's revenue surged 61% to 244 million yuan, while its WPS software business jumped 32% to 347 million yuan.

Monthly active devices using WPS Office grew 4% to 672 million, with PC users rising 9.1% due to a decline in smartphone shipments.

Kingsoft Office attributed the growth to its promotion of artificial intelligence products across its domestic and international markets, according to its filing with the Shanghai bourse.

The company's artificial intelligence, work collaboration and international strategies are on track, Jefferies said in its report.

The investment bank maintained its buy rating on the WPS Office maker.

Jefferies flagged risks such as more intense competition from new entrants with higher capital, user experience on product upgrades and sub-par new releases, and aggressive overseas expansion spending.

Related Articles

Research

Research Alert: CFRA Keeps Buy Opinion On Shares Of The Hartford Insurance Group, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target price by $8 to $155, valuing HIG shares at 11.3x our 2026 operating EPS estimate of $13.75 (cut by $0.45) and at 10.6x our 2027 EPS estimate of $14.65 (cut by $0.30), vs. the shares' one-year average forward multiple of 10.3x and peer average of 13x. Q1 EPS of $3.09 vs. $2.20 a year ago missed our $3.60 estimate and $3.39 consensus view. Operating revenue growth of 6.2% was in line with our 6%-10% forecast, amid 5.3% earned premium growth, 13% higher net investment income, and 7.9% fee revenue growth. Q1 written premium growth of 4% and full-year 2025 growth of 7% bode well for 2026 revenue trends as premiums are earned. Underwriting results improved significantly, with Personal Lines combined ratio improving to 87.7% from 106.1% and underlying combined ratio to 85.0% from 89.7%. Business Insurance combined ratio was stable at 94.8%. Weighing the Q1 EPS miss with HIG's decent top-line growth and discounted valuation to peers, we view the shares as undervalued.

$HIG
Research

Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Baker Hughes

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $14 to $82, reflecting a combination of our sum-of-the-parts (SOTP) and DCF models. For our SOTP model, we presume the oilfield services business (about 50% of BKR's franchise) to be valued at about 10x projected 2027 EBITDA (in line with major peers) and its industrial energy technology business (the other 50%) valued at 14x projected 2027 EBITDA (in line with the peer median). This blended approach, yielding a 12x multiple, implies a value of $73 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 5% per year, terminal growth of 2.5%, discounted at a WACC of 6.3%, yields intrinsic value of $91 per share. We cut our 2026 EPS estimate by $0.47 to $2.48, but we raise 2027's by $0.07 to $3.24. We acknowledge that the oilfield services business is likely to struggle in 2026 owing to the U.S.-Iran conflict, but the IET business appears quite robust and likely to be a source of both accelerating revenue growth and margins.

$BKR
Research

Research Alert: CFRA Maintains Hold Opinion In Shares Of Wab

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target to $285 from $275 following WAB's Q1 earnings print, valuing shares at 24.2x our 2027 EPS outlook of $11.76 (revised from $11.46; 2026 EPS estimate up to $10.57 from $10.50), a slight premium to WAB's long-term historical multiple average given structural improvements in earnings quality. While we are cautious on signs of overcapacity in the freight market, an elevated order backlog (12-month sits at over $9 billion), internal initiatives to shore up margins, and potential synergies from M&A activity positions WAB to continue growing earnings at double-digit rates in 2026-2027, in our view. Despite tariff-related cost pressures, WAB has done a commendable job of defending margins via a mix of pricing, lean manufacturing, and pruning of lower-profit operations. Q1 results were mixed but overall positive, in our view. We maintain our Hold recommendation on shares.

$WAB