event:

according to the report of IT house, WPS has launched WPS AI members.

comments:

WPS AI commercialization officially landed, ARPU increased significantly. In addition to free registration, WPS has three membership systems, namely WPS svip, AI member and big member. Among them, AI members have a series of AI rights and interests, including AI writing articles, topic generation/document generation PPT, AI document summary, etc. The big members include all the rights and interests of WPS svip and AI members. In terms of price, taking the 1-year period as a reference, after considering the discount, the prices of AI members and large members are equivalent to 15.67 yuan/month and 22.33 yuan/month respectively, which is a significant increase of 59% and 126 per cent compared to svip. With the increase in WPS AI penetration, Jinshan Office's overall ARPU is expected to further improve, performance growth can be expected.

investment advice: WPS AI commercialization officially landed, AI members and large members with AI functions have significantly increased ARPU compared with svip. With the increase in WPS AI penetration, the company's overall ARPU is expected to further improve, performance growth is expected. Looking ahead, the commercialization of AI applications to accelerate the landing, on the one hand, will help increase user stickiness, improve ARPU, on the other hand, will further increase the demand for computing power. It is recommended to pay attention to NV, domestic computing industry chain, as well as office, games, marketing and other first commercial AI application scenarios. The targets include Industrial Fulian (601138.SH), Wave Information (000977.SZ), Jinshan Office (688111.SH), Shanghai Electric Power (002463.SZ), High-tech Development (000628.SZ), Radio and Television Express (002152.SZ), Soft Power (301236.SZ), Shenzhou Digital (000034.SZ), etc.

Risk Warning: Technology advancement is less than expected; demand release is less than expected; industry competition is intensifying.