TRANSSION(SH:688036) Haitong Securities·2024-09-04 11:10Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company achieved a revenue of 34.558 billion yuan in the first half of 2024, representing a year-on-year increase of 38.07%. The net profit attributable to the parent company was 2.852 billion yuan, up 35.71% year-on-year [5][6]. - The company is expanding into emerging markets and benefiting from product upgrades, with a gross margin of 22.2% in Q1 2024 and 20.9% in Q2 2024. Adjusted gross margins were 22.2% and 22.5% respectively [6]. - The company holds a 14.4% market share in the global smartphone market, ranking second among smartphone manufacturers, with a 9.1% share in the global smartphone market, ranking fourth [6]. - The growth logic of the company is based on market expansion, product innovation, and ecosystem development, particularly focusing on the African market and other emerging markets [6]. - The company is expected to benefit from the rapid growth of niche markets in the third world, with projected EPS of 5.02, 6.48, and 7.66 yuan for 2024-2026. The PE valuation range for 2024 is estimated at 18-23x, corresponding to a fair value range of 90.36-115.46 yuan [6][7]. Financial Summary - The company reported a revenue of 62.295 billion yuan in 2023, with a projected revenue of 74.360 billion yuan in 2024, reflecting a year-on-year growth of 19.4% [7][9]. - The net profit for 2023 was 5.537 billion yuan, with an expected net profit of 5.666 billion yuan in 2024, showing a slight increase of 2.3% [7][9]. - The gross margin is projected to be 23.4% in 2024, with a net asset return rate of 28.0% [9].