GOLDMAN SACHS: LOOK AT THE KINSAN OFFICE AI SMART-BODY PRODUCT, BUT THE STOCK PRICE WAS VALUED HIGH

During the Shanghai World Congress on Artificial Intelligence (WAIC) in 2026, the Kim Shan Office launched WPS Contact, positioning it as an AI smart body capable of carrying out complex tasks. Goldman Sachs expects that the application of AI ' s smart body on edges will become more widespread. The market will pay more attention to the return on investment of AI ' s smarts to judge whether they can achieve long-term penetration. Goldman Sachs considered the Kim Shan office to be overvalued and downgraded its rating from “neutral” to “sale”. The reasons for this are: (1) the increase in WPS AI fees and user adoption rates will still take time; (2) the peer-initiated AI primary products will be more competitively priced,3 and there is still a lack of clear AI usage cases by end-users to prove their positive return on investment; and (4) the weak expenditure by small business clients and the reduced contribution of subscription revenue. This means that Goldman Sachs ' previous assumptions about enterprise and consumer subscriptions may be too radical. The target price has been revised downwards from the previous RMB 326 to RMB 201, up to a further 31 times the updated RMB 2027E P/E, which is less than 45 times the previously anticipated price. However, if the new functionality of the Kimshan office drives higher-than-anticipated rates of personal user fees, if the WPS 365 penetration of business clients is faster than anticipated, or if the user's consumption or use of WPS AI is significantly higher than the current assumption, then the target price of Kim Shan is expected to rise. Kim Xian