TRANSSION(688036) Tai Ping Yang·2024-09-02 05:04Investment Rating - The report maintains a "Buy" rating for Transsion Holdings (688036) [1][7]. Core Views - Transsion Holdings has solidified its advantages in emerging markets and its diversified strategy is driving growth [1][5]. - The company achieved a revenue of 34.558 billion yuan in H1 2024, representing a year-on-year growth of 38.07%, and a net profit of 2.852 billion yuan, up 35.70% year-on-year [4]. - The company continues to expand its market presence in emerging markets, particularly in Africa, where it holds over 40% market share in the smartphone segment [4][5]. Financial Performance - In H1 2024, the company reported a net profit margin of 8.25%, indicating stable profitability [4]. - The sales expense for H1 2024 was 2.407 billion yuan, with a sales expense ratio of 6.96%, down 0.78 percentage points year-on-year [4]. - The company is projected to achieve revenues of 74.187 billion yuan, 86.969 billion yuan, and 99.336 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 5.817 billion yuan, 6.932 billion yuan, and 8.550 billion yuan [6][8]. Market Position - Transsion Holdings ranks second globally in the smartphone market with a 14.4% market share and fourth in the global smartphone market with a 9.1% share [4]. - The company is actively pursuing a multi-brand strategy to enhance its market share and user experience in key regions [5]. Future Outlook - The report forecasts a continued positive trajectory for the company, with expected revenue growth rates of 19.09%, 17.23%, and 14.22% for the years 2024, 2025, and 2026 respectively [8]. - The projected earnings per share (EPS) for 2024 is 5.15 yuan, with a price-to-earnings (PE) ratio of 15.54 [8].