Galaxy Securities released a research report stating that KINGSOFT (03888), as a leading domestic office software provider, has broad prospects for AI empowerment, while its gaming business is actively adapting. The firm initiated coverage with a "Recommended" rating. The securities house forecasts KINGSOFT's annual operating revenue for 2025 to 2027 to be RMB 10.568 billion, RMB 11.608 billion, and RMB 13.4 billion, respectively, with growth rates of 2.43%, 9.83%, and 15.44%. Earnings per share are projected to be RMB 1.00, RMB 1.11, and RMB 1.31 for the respective years. The report indicates that WPS AI has significantly boosted user activity and payment conversion. Revenue from the business-facing WPS 365 surged 71.61% year-on-year in the third quarter of 2025. AI empowerment is creating a flywheel effect with data and product iteration, and as the subscription model accelerates, government AI products have already been deployed in central and local party and government organs. Furthermore, the report notes that the company centers its strategy around the "Swordsman" IP. The client-based game "JX3" maintains vitality through continuous operation, and its cross-platform version, "JX3 Unbounded," has seen significant user回流 upon launch. The company is actively expanding into new genres such as sci-fi and anime-style games and is promoting the overseas expansion of its games to break its reliance on the traditional martial arts genre. However, the market performance of new games is mixed, putting short-term performance under pressure. Revenue from the online games and other businesses segment decreased by 47% year-on-year in the third quarter, primarily due to declining revenue from existing games like "Jie Xian Ji," while newly launched games are still in the early stages of building market influence.