Kingsoft just released their 4th quarter. Revenue up 20% yoy, Op profit up 37% yoy. Proposed final dividend of HK$0.13 compared to HK$0.12 last year. Price to fcf should be similar to last year, ard 17-18x assuming capex is similar to last year(not disclosed).
Kingsoft market cap is currently: 5.95bil usd
Lets relook at its sum of parts.
Kingsoft Office(53% stake): 12.93bil usd (3.49bil usd at 40x pe)
WPS is the crown jewel of Kingsoft. WPS has a full product suite that mirrors Microsoft Office (Word, Excel, PowerPoint, PDF, document cloud, and collaboration tools).
WPS and Microsoft are interchangeable in terms of functionality. There are some areas where WPS is better and others where Microsoft is better, but those are along the fringes. Lastly, WPS has been added to some national student examinations as of November 2020 and by March 2021 was in all national student exams. This point is crucial as it will train the younger generation to...