TRANSSION(688036) 华鑫证券·2024-11-11 13:33Investment Rating - The report maintains a "Buy" investment rating for the company [2][6]. Core Insights - The company achieved a revenue of 51.252 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 19.13%. However, the net profit attributable to shareholders was 3.903 billion yuan, a slight increase of 0.50%, while the net profit excluding non-recurring items decreased by 7.44% [2][3]. - The company is actively developing AI-enabled mobile products and has launched several AI-featured smartphones, enhancing its product matrix and core competitiveness [4]. - The company is expanding its strategic presence in emerging markets, particularly in Africa, South Asia, Southeast Asia, the Middle East, and Latin America, where it holds a 14.4% market share in the global smartphone market as of the first half of 2024 [5]. Summary by Sections Financial Performance - In Q3 2024, the company reported a 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, primarily due to market competition and supply chain costs [3]. - The company forecasts revenues of 71.197 billion yuan, 81.976 billion yuan, and 93.412 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 4.94 yuan, 5.77 yuan, and 6.82 yuan [6][8]. Product Development - The company launched TECNO AI OS in March 2024 and several AI-enabled smartphones in September, including the PHANTOM series, which features advanced AI functionalities [4]. - A joint AI laboratory was established with MediaTek to focus on innovations in large language models and AI applications in mobile devices [4]. Market Strategy - The company is strategically positioned in emerging markets, with a leading market share in Africa and Pakistan, and is exploring further expansion into Southeast Asia, Latin America, and the Middle East [5]. - The transition from feature phones to smartphones in emerging markets presents significant growth potential for the company [5].