TRANSSION(688036)2024-11-08 06:28Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company achieved operating revenue of 51.252 billion yuan in the first three quarters of 2024, representing 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. In the third quarter of 2024, the company reported revenue of 16.693 billion yuan, a decrease of 7.22% year-on-year, and a net profit of 1.051 billion yuan, down 41.02% year-on-year [5][6]. Summary by Sections Financial Performance - The company reported a gross margin of 21.72% in Q3 2024, an increase of 0.83 percentage points from the previous quarter, with a net profit margin of 6.44% [5]. - The projected operating revenue for 2024 is 68.625 billion yuan, with a year-on-year growth of 10.2%. The net profit is expected to be 5.267 billion yuan, a decrease of 4.9% year-on-year [8][10]. Market and Growth Strategy - The company is focusing on emerging markets, particularly in Africa, where mobile penetration remains low. This strategy aims to capture growth in the niche markets of the third world [6]. - The company is enhancing product offerings to align with local consumer preferences, which has resulted in high brand loyalty and competitive advantage [6]. Earnings Forecast - The earnings per share (EPS) for 2024 is projected to be 4.62 yuan, with estimates of 5.75 yuan and 6.79 yuan for 2025 and 2026, respectively. The price-to-earnings (PE) ratio for 2024 is expected to be in the range of 18-23x, corresponding to a reasonable value range of 83.16-106.26 yuan [7][10].