TRANSSION(SH:688036) 3 6 Ke·2026-02-05 03:57Core Viewpoint - Transsion Holdings is expected to experience a decline in both revenue and net profit in 2025, with net profit projected to be halved, marking the worst performance since its IPO in 2019 [1][2][4]. Financial Performance - The company forecasts a revenue of approximately 65.568 billion yuan for 2025, a decrease of about 31.47 billion yuan or 4.58% year-on-year [2]. - The net profit attributable to shareholders is expected to be around 2.546 billion yuan, down by approximately 30.03 billion yuan or 54.11% year-on-year [2][4]. - In the first half of 2025, Transsion reported a revenue of 29.077 billion yuan, a decline of 15.86% compared to the same period last year, with net profit dropping by 57.48% [5]. Market Competition - Transsion's market share remains the largest in Africa, but competition is intensifying, particularly from Xiaomi and Honor, which have shown growth rates of 34% and 158% respectively [1][8]. - The global smartphone market is experiencing sluggish growth, with a projected increase of only 2% in 2025, leading to increased pressure on low-cost manufacturers like Transsion [8]. Cost and Supply Chain Issues - The company attributes its poor performance to rising storage prices, which have significantly impacted product costs and gross margins [4][6]. - The global storage market has seen prices increase by over 40% due to high demand from AI data centers, further straining the cost structure for smartphone manufacturers [7][8]. Diversification Efforts - To mitigate risks, Transsion is exploring new business areas such as mobility and energy storage, although these segments currently contribute only 8.8% to total revenue [10][12]. - The company has established multiple brands and is attempting to expand into electric vehicles and energy storage products, but these initiatives have yet to generate significant revenue [10][12].