US Markets
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.
HKG:3888SHA:688111
