TRANSSION(SH:688036) Soochow Securities·2024-08-28 14:40Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved robust revenue and profit growth in the first half of 2024, with total revenue reaching 34.56 billion yuan, a year-on-year increase of 38.1%, and net profit attributable to shareholders of 2.85 billion yuan, up 35.7% [4] - The company is expanding its product categories and upgrading its product structure, which is expected to drive long-term growth [5] - The company is focusing on innovation in multi-skin tone imaging technology to cater to emerging markets, enhancing its competitive edge [5] Financial Performance - Total revenue for 2022 was 46.596 billion yuan, with a year-on-year decrease of 5.7%, while 2023 revenue increased to 62.295 billion yuan, a growth of 33.69%, and is projected to reach 74.705 billion yuan in 2024, a further increase of 19.92% [2] - Net profit attributable to shareholders for 2022 was 2.484 billion yuan, down 36.46%, but rose to 5.537 billion yuan in 2023, a 122.93% increase, with an expected profit of 5.780 billion yuan in 2024, reflecting a growth of 4.38% [2] - The company's latest diluted EPS is projected to be 5.12 yuan for 2024, with a P/E ratio of 16.39 [2] Product and Market Strategy - The company is actively exploring new markets and enhancing product offerings, with smartphone revenue in H1 2024 reaching 29.37 billion yuan, a 45.7% increase, while feature phone revenue decreased by 8.3% to 2.61 billion yuan [4] - The company launched innovative products, including the Infinix GT 20 Pro gaming phone and TECNO's AI-driven products, showcasing its commitment to product innovation [4][5] - The company is leveraging its advantages in emerging markets, focusing on personalized products and technologies that address local needs, such as low bandwidth and memory configurations [5] Profit Forecast and Valuation - The profit forecast for 2024-2026 has been adjusted to 5.78 billion yuan, 6.84 billion yuan, and 8.39 billion yuan respectively, with corresponding P/E ratios of 16, 14, and 11 times [5]