TRANSSION(688036)2024-11-06 01:54Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. Core Views - The company's gross margin has improved on a quarter-on-quarter basis, indicating a potential recovery in profitability. The gross margin for Q3 2024 is reported at 21.72%, which is an increase from the previous quarter, although it has decreased by 3.5 percentage points year-on-year [3][4]. - The company has released its Q3 2024 report, showing a revenue of 16.693 billion yuan, a year-on-year decrease of 7.22%. The net profit attributable to the parent company is 1.051 billion yuan, down 41.02% year-on-year, while the net profit excluding non-recurring items is 820 million yuan, down 52.72% year-on-year [3][4]. - The company is actively following market trends and developing a diversified product matrix, including innovations in AI and smartphone technology, such as the PHANTOM Ultimate series and AI-enabled features in its devices [4][5]. - The growth logic for the company is clear, with a solid operational barrier in emerging markets and significant growth potential in smartphone sales. The company is expected to achieve net profits of 5.43 billion yuan, 6.58 billion yuan, and 7.62 billion yuan from 2024 to 2026, corresponding to price-to-earnings ratios of 20x, 17x, and 14x respectively [5][6]. Financial Summary - For the first three quarters of 2024, the company achieved a revenue of 51.252 billion yuan, a year-on-year increase of 19.13%. The net profit attributable to the parent company was 3.903 billion yuan, up 0.50% year-on-year, while the net profit excluding non-recurring items was 3.248 billion yuan, down 7.44% year-on-year [3][4]. - The company's gross margin for the first three quarters of 2024 was 21.59%, a decrease of 3.2 percentage points year-on-year [3][4]. - The current stock price is reported at 95.50 yuan, with a total share capital of 1.14035 billion shares and a net asset per share of 17.97 yuan [6].