# Beijing Kingsoft Office Software In (688111.SHG)

Canonical: https://gigainvestors.com/s/688111.SHG

Analysis as of: 2026-10-16T07:35:01.948Z. Financial observations: FY2014–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 232.50 per share; close as of 2026-10-15.

Estimated value: low CNY 62.47 per share, central CNY 87.27 per share, high CNY 101.71 per share. Buy at or below the central value CNY 87.27 per share. Valuation as of 2026-10-16T07:35:01.948Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.29×

- FY2018: 0.30×

- FY2019: 0.25×

- FY2020: 0.41×

- FY2021: 0.34×

- FY2022: 0.31×

- FY2023: 0.31×

- FY2024: 0.34×

- FY2025: 0.33×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 21.5%

- ROIC, second-lowest year: 12.8%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 86.8%

- Recent gross margin (lower of latest and 3-year median): 85.3%

- Years with nonpositive capital: 3

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: 27.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.3%

- FY2017: 24.5%

- FY2018: 32.7%

- FY2019: 6.5%

- FY2020: 12.8%

- FY2021: 13.7%

- FY2022: >100%

- FY2023: 85.8%

- FY2024: 18.5%

- FY2025: 79.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 6.7B

- Net income, five-year total: CNY 7.0B

- Return on incremental invested capital: 300.4%

- Working capital / revenue, annual change: -2.5 pp

- Working capital / revenue, change between three-year averages: -15.8 pp

- Working capital / revenue, final three-year average: 3.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.94×

- FY2022: 0.93×

- FY2023: 0.95×

- FY2024: 0.95×

- FY2025: 1.00×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 24.5% vs 79.3%

- Per-share earnings: 0.36 to 3.56 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 0.6%

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 0.6%

- Per-share value growth: 33.2%

- Per-share value change: CNY 3.20

- Per-share value, starting three-year median: CNY 0.36

- Per-share value, ending three-year median: CNY 3.56

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 289M

- Cumulative net income, 10 years: CNY 8.9B

- ROIC, first three-year median: 24.5%

- ROIC, last three-year median: 79.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.36

- FY2017: CNY 0.60

- FY2018: CNY 0.86

- FY2019: CNY 1.02

- FY2020: CNY 1.91

- FY2021: CNY 2.26

- FY2022: CNY 2.42

- FY2023: CNY 2.82

- FY2024: CNY 3.56

- FY2025: CNY 3.88

### accounting: pass

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.8%

- FY2017: -10.4%

- FY2018: -6.6%

- FY2019: -2.7%

- FY2020: -7.5%

- FY2021: -7.9%

- FY2022: -4.0%

- FY2023: -5.3%

- FY2024: -3.5%

- FY2025: -4.2%

## Holders

## Price story

Down 51% since Mar 2023 · sales +15.8%

Story as of 2026-10-16T10:00:03.379Z; price observation 2026-10-15.

Price needs cash profits to grow 19.5% a year for ten years

### Sales · FY2024–2025

sales +15.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 543M 

- FY2017: CNY 753M 

- FY2018: CNY 1.1B 

- FY2019: CNY 1.6B 

- FY2020: CNY 2.3B 

- FY2021: CNY 3.3B 

- FY2022: CNY 3.9B 

- FY2023: CNY 4.6B 

- FY2024: CNY 5.1B 

- FY2025: CNY 5.9B 

### Gross margin · FY2024

gross margin 85.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 88.5% 

- FY2017: 88.2% 

- FY2018: 86.7% 

- FY2019: 85.6% 

- FY2020: 87.7% 

- FY2021: 86.9% 

- FY2022: 85.0% 

- FY2023: 85.3% 

- FY2024: 85.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are CNY 5.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2025: revenue 5928744673; grossProfit 5928744673; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688111.SHG: Beijing Kingsoft Office Software, Inc. provides office software products and services in China and internationally. It offers WPS Office for Windows, Mac, Android, iOS, Linux, HarmonyOS, Enterprise PC version, and Enterprise Mobile Version; cloud office products comprising Kingsoft Docts, WPS Collaboration, WPS Email, WPS Calendar, and WPS Meeting; and other products, including WPS AIPPT, WPS Browser Assistant, WPS PDF Standalone Version, WPS PDF Professional Edition, Kingsoft PowerWord, Kingsoft PowerWord Enterprise Edition, WPS Dark Horse Proofreader, and Kingsoft Typing Tutor. The company was founded in 1988 and is based in Beijing, China. Beijing Kingsoft Office Software, Inc. operates as a subsidiary of Kingsoft Wps Corporation Limited.

### Why customers stay

Margins ranged from 85.1% to 100% during 2023–25; it earns 21.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2023: grossProfit / revenue = 85.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2024: grossProfit / revenue = 85.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); 10-year return on capital observations [[2016,0.17325878748854],[2017,0.24512134474200759],[2018,0.32656870083799744],[2019,0.06524123372786278],[2020,0.12768646502391787],[2021,0.13676510419725993],[2022,2.4164773131034347],[2023,0.8576881960261482],[2024,0.18486638233276395],[2025,0.7927318124682019]]; median 0.21499386353738575. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 85% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); Gross margin observations: [[2021,0.8691021058437705],[2022,0.8499570814442685],[2023,0.8529752709081961]]; range within 2 percentage points.

### Where the cash goes

Spends 2% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2016: growth capex 2262196.2625577897; upkeep 56307002.17744221; owner earnings 77001430.82255779. Growth capex / owner earnings = 0.029378626324110757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2017: growth capex 4070304.0518490076; upkeep 25434311.41815099; owner earnings 193369960.581849. Growth capex / owner earnings = 0.021049309001261046.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2018: growth capex 9335439.288262986; upkeep 43238113.381737016; owner earnings 278968012.618263. Growth capex / owner earnings = 0.03346419254539231.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2019: growth capex 12984676.226902202; upkeep 50225563.2430978; owner earnings 379758942.7569022. Growth capex / owner earnings = 0.0341918906047044.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2020: growth capex 10228884.82; upkeep 45048556; owner earnings 878141267. Growth capex / owner earnings = 0.011648336326278128.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2021: growth capex 41870822.08456078; upkeep 106974992.63543922; owner earnings 983792126.8985608. Growth capex / owner earnings = 0.0425606395291656.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2022: growth capex 30681703.66122508; upkeep 145280144.17877492; owner earnings 1034721321.2792251. Growth capex / owner earnings = 0.02965214210846.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2023: growth capex 39188381.07519975; upkeep 126659995.92480025; owner earnings 1254435663.6071997. Growth capex / owner earnings = 0.031239849290087447.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2024: growth capex 38665347.65987751; upkeep 136326434.3401225; owner earnings 1565514330.6298776. Growth capex / owner earnings = 0.024698175483529865.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); FY2025: growth capex 37686938; upkeep 60200032; owner earnings 1839959502.318. Growth capex / owner earnings = 0.020482482333182662.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); Incremental return on capital 3.003907769336827, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); Dividend observations: [[2016,0],[2017,15833333.33],[2018,184166666.67],[2019,138300000],[2020,138300000],[2021,276600000],[2022,322700000],[2023,336726294],[2024,406290351],[2025,415993361]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 56.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688111.SHG SharesStats.PercentInsiders = 56.718 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:01.948Z); Ten-year compound average after fade. Initial solved rate 0.2705263200135192. Price 232.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.3802468909224801 → FY2025 3.8742351424402326. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2019-11: CNY 136.50 per share

- 2019-12: CNY 163.90 per share

- 2020-01: CNY 179.50 per share

- 2020-02: CNY 235.52 per share

- 2020-03: CNY 224.50 per share

- 2020-04: CNY 262.48 per share

- 2020-05: CNY 267.47 per share

- 2020-06: CNY 341.58 per share

- 2020-07: CNY 392.99 per share

- 2020-08: CNY 330.87 per share

- 2020-09: CNY 330.00 per share

- 2020-10: CNY 327.51 per share

- 2020-11: CNY 321.08 per share

- 2020-12: CNY 411.00 per share

- 2021-01: CNY 415.00 per share

- 2021-02: CNY 336.00 per share

- 2021-03: CNY 324.00 per share

- 2021-04: CNY 380.00 per share

- 2021-05: CNY 392.00 per share

- 2021-06: CNY 394.80 per share

- 2021-07: CNY 328.00 per share

- 2021-08: CNY 249.50 per share

- 2021-09: CNY 283.32 per share

- 2021-10: CNY 295.28 per share

- 2021-11: CNY 270.84 per share

- 2021-12: CNY 265.00 per share

- 2022-01: CNY 243.29 per share

- 2022-02: CNY 213.22 per share

- 2022-03: CNY 187.66 per share

- 2022-04: CNY 188.70 per share

- 2022-05: CNY 204.90 per share

- 2022-06: CNY 197.12 per share

- 2022-07: CNY 175.10 per share

- 2022-08: CNY 180.12 per share

- 2022-09: CNY 201.11 per share

- 2022-10: CNY 290.74 per share

- 2022-11: CNY 255.78 per share

- 2022-12: CNY 264.49 per share

- 2023-01: CNY 281.30 per share

- 2023-02: CNY 291.00 per share

- 2023-03: CNY 473.00 per share

- 2023-04: CNY 440.20 per share

- 2023-05: CNY 432.00 per share

- 2023-06: CNY 472.22 per share

- 2023-07: CNY 406.00 per share

- 2023-08: CNY 394.60 per share

- 2023-09: CNY 370.80 per share

- 2023-10: CNY 287.10 per share

- 2023-11: CNY 301.75 per share

- 2023-12: CNY 316.20 per share

- 2024-01: CNY 214.22 per share

- 2024-02: CNY 270.95 per share

- 2024-03: CNY 291.00 per share

- 2024-04: CNY 310.00 per share

- 2024-05: CNY 258.80 per share

- 2024-06: CNY 227.50 per share

- 2024-07: CNY 210.64 per share

- 2024-08: CNY 182.21 per share

- 2024-09: CNY 266.40 per share

- 2024-10: CNY 257.53 per share

- 2024-11: CNY 294.74 per share

- 2024-12: CNY 286.39 per share

- 2025-01: CNY 314.00 per share

- 2025-02: CNY 346.19 per share

- 2025-03: CNY 299.12 per share

- 2025-04: CNY 293.19 per share

- 2025-05: CNY 281.79 per share

- 2025-06: CNY 280.05 per share

- 2025-07: CNY 313.50 per share

- 2025-08: CNY 334.50 per share

- 2025-09: CNY 316.50 per share

- 2025-10: CNY 358.99 per share

- 2025-11: CNY 311.31 per share

- 2025-12: CNY 307.07 per share

- 2026-01: CNY 336.84 per share

- 2026-02: CNY 301.16 per share

- 2026-03: CNY 233.56 per share

- 2026-04: CNY 251.94 per share

- 2026-05: CNY 238.50 per share

- 2026-06: CNY 213.05 per share

- 2026-07: CNY 269.58 per share

- 2026-08: CNY 249.65 per share

- 2026-09: CNY 218.80 per share

- 2026-10: CNY 232.44 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 5.32 per share, central CNY 5.99 per share, high CNY 6.88 per share

- FY2019: low CNY 26.40 per share, central CNY 27.85 per share, high CNY 29.78 per share

- FY2020: low CNY 29.69 per share, central CNY 31.52 per share, high CNY 33.95 per share

- FY2021: low CNY 37.69 per share, central CNY 40.45 per share, high CNY 44.12 per share

- FY2022: low CNY 42.16 per share, central CNY 45.54 per share, high CNY 50.04 per share

- FY2023: low CNY 46.82 per share, central CNY 50.86 per share, high CNY 56.24 per share

- FY2024: low CNY 49.92 per share, central CNY 69.30 per share, high CNY 80.58 per share

- FY2025: low CNY 72.53 per share, central CNY 94.34 per share, high CNY 107.04 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations