TRANSSION(688036) ZHONGTAI SECURITIES·2024-10-31 00:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a Q3 gross margin improvement, continuing its focus on high-end product development and edge AI integration [1] - The company is expected to achieve a net profit of 55.5 billion, 65.6 billion, and 75.6 billion for the years 2024, 2025, and 2026 respectively, corresponding to PE valuations of 19, 16, and 14 times [1] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 51.25 billion, a year-on-year increase of 19.1%, and a net profit of 3.9 billion, a year-on-year increase of 0.5% [1] - In Q3 2024, the company reported revenue of 16.69 billion, a year-on-year decrease of 7.2%, and a net profit of 1.05 billion, a year-on-year decrease of 41.0% [1] - The gross margin for Q3 2024 was 21.7%, a year-on-year decrease of 3.5 percentage points, but improved by 0.8 percentage points quarter-on-quarter [1] Market and Product Development - The company maintained its smartphone shipment volume at over 25 million units in Q3 2024, with a global market share of approximately 8% [1] - The company is focusing on high-end product development, having launched the second generation of its flagship foldable phone series, PHANTOM V Fold2 and V Flip2, featuring new TECNO AI capabilities [1] Future Outlook - The company anticipates that new product launches and holiday promotions will drive sales growth in Q4 2024, with declining raw material prices expected to further enhance gross margins [1]