Jinshan Office (A17083) In-depth Report: Autonomous and Controllable Yangfan Intelligent Cloud with Flag

Jinshan Office (A17083) In-depth Report: Autonomous and Controllable Yangfan Intelligent Cloud with Flag
Autonomy and control are imminent, and intelligent cloudification has a bright future.Kingsoft office technology, rich product and customer resource accumulation reserves, troika (authorization + subscription + advertising) synergistically drive C-side + BG-side growth, helping the company to become a domestic software independent controllable flag carrier and pioneer of cloud transformationThe board IPO is worth watching. After thirty years of hardening, Jinshan has become a core domestic brand in the field of basic software.Kingsoft Office’s core product, WPSOffice, provides organizations and individuals with office software functions such as PC + mobile collaborative text, forms, presentations, and PDF reading.After more than 30 years of development, the company has become a leader in domestic office software, and has leveraged localization and genuine Dongfeng to promote the transformation of its business model to cloud-based subscription services.In 2018, the company’s total revenue was 1.1 billion, an increase of over 50%; net profit attributable to mothers was achieved3.10 trillion, ten years + 45%. Genuine controllable trends, cloud-based intelligence becomes the future direction of the office software industry.The China office software market size was 85 in 2018.34 trillion, Ji Shi Information predicts that the market will reach 149 by 2023.04 billion, cloud collaboration, AI empowerment 南宁桑拿 has become a core trend.Global market leader in the market structure, domestic Jinshan dominate.We believe that with the strong demand for value-added office services and the coordination of national legalization and independent controllable policies, the domestic office software market is expected to achieve a new round of development, and the market size and growth of leading companies are also expected to exceed market expectations. The C-end high-quality products achieved massive customer acquisition and initial advertising monetization, and the value-added subscription service met the pain points of demand and opened up the liquidation space.WPS’s five characteristics of easy operation, high compatibility, light weight, integration, and synergy attract the company’s MAU Super 3.1 billion, as an initial realization of the advertising business is expected to maintain a growth rate of about 20%; meanwhile, C-terminal value-added services represented by WPS members and rice hull members, using practical functions, ultra-high cost performance to meet the pain points of demand, membership conversion3)%) + ARPU boost helps C-end subscriptions continue to explode. BG end genuine + domestically driven authorization growth, cloudization subscriptions are ready to go.The company has perfect high-quality functions, high cost performance and high autonomy. In party and government agencies, institutions and large and medium-sized enterprises, a high proportion (80% + in some areas) of initial customer coverage has been achieved, combining genuine and autonomous controllable policiesIt is expected that the actual market share and business scale will continue to increase, and billions of cloud-based office sites will be opened up.At the same time, the WG + cloud office on the BG side has gradually expanded to realize the transformation from an authorization model to a cloud-based subscription service, which helps to improve service quality and customer stickiness. Risk factors: IPO progress, product promotion is less than expected; evaluation rate increases slowly; total government demand. Investment suggestion: The company has abundant customer resources and promotes the penetration of value-added subscription services based on advertising and software licensing business.The company plans to land on the science and technology board and raise funds20.5 billion US dollars, leveraging the capital market to explore a wide range of intelligent cloud potential, and become a flag bearer in autonomous and controllable fields.It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 4.3.3 billion / 5.93 ppm / 7.9.7 billion (comparable companies average 2019 PE 58.85x, PS 11.63x).As the company is still in the initial public offering stage and has no target price and rating, it is recommended to actively pay attention to the progress of the initial public offering.