TRANSSION(SH:688036) Soochow Securities·2024-10-31 22:37Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a Q3 gross margin increase, although short-term performance is pressured by expenses. For the first three quarters of 2024, revenue reached 51.25 billion yuan, a year-on-year increase of 19.1%, while net profit attributable to shareholders was 3.90 billion yuan, up 0.5% year-on-year. In Q3 2024 alone, revenue was 16.69 billion yuan, down 7.2% year-on-year, and net profit was 1.05 billion yuan, down 41.0% year-on-year, with a gross margin of 21.7%, up 0.83 percentage points quarter-on-quarter [2][3] Financial Performance and Forecast - The company is expected to achieve total revenue of 71.84 billion yuan in 2024, with a year-on-year growth of 15.32%. The net profit attributable to shareholders is forecasted to be 5.51 billion yuan, a slight decrease of 0.43% year-on-year. The earnings per share (EPS) for 2024 is projected to be 4.83 yuan, with a price-to-earnings (P/E) ratio of 19.44 based on the current price [1][4] Product and Technology Innovation - The company is expanding its product range and accelerating AI technology innovation. In September, it launched the PHANTOM ULTIMATE 2 foldable phone and the second generation of the PHANTOM series, which includes advanced AI features. The company is also collaborating with MediaTek to establish an AI joint laboratory to enhance AI applications in smart devices [3][4] Strategic Development - The company is enhancing its diversified strategy by integrating mobile internet services with home appliances and digital accessories. It aims to strengthen its competitive edge in various markets, including Africa, South Asia, Southeast Asia, the Middle East, and Latin America. The company is also deepening its partnership with the UNHCR to support global primary education initiatives [4]