TRANSSION(688036) 国海证券·2024-11-11 23:33Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The company, Transsion Holdings, is positioned to benefit from the recovery of emerging markets driven by U.S. interest rate cuts, with a diversified business model focusing on "mobile phones + expanded categories + mobile internet" [2][3]. - The smartphone business is expected to see growth due to improved macroeconomic conditions in emerging markets, particularly in Africa and South Asia, where the company has a strong market presence [3]. - The expansion into new markets such as Southeast Asia, Latin America, and the Middle East is part of the company's strategy to enhance its market share and profitability [3]. Summary by Sections 1. Business Foundation and Diversification Strategy - Transsion Holdings, established in 2006, has built a business model centered around mobile phones, with brands TECNO, Infinix, and itel targeting different consumer segments [18][24]. - The company has successfully penetrated the African market and is now expanding into other regions, leveraging a localized strategy to enhance competitiveness [3][24]. 2. Market Expansion and Performance - The company has achieved significant market share in Africa, Pakistan, and Bangladesh, with its smartphone brands ranking first in these markets [22][24]. - The report highlights a strong revenue growth trajectory, with 2023 revenue reaching 622.95 billion yuan, a year-on-year increase of 33.69% [27]. 3. Growth Potential in Expanded Categories and Mobile Internet - The company is diversifying into accessories and home appliances, with a focus on local consumer needs, which is expected to create additional growth avenues [3][24]. - The mobile internet segment is seen as a blue ocean market, with the company developing its own operating systems and applications to enhance user engagement and monetization [24][27]. 4. Financial Forecasts and Valuation - Revenue projections for 2024-2026 are estimated at 715.62 billion, 856.83 billion, and 1,049.70 billion yuan, with corresponding growth rates of 14.9%, 19.7%, and 22.5% [4]. - The company's net profit forecasts for the same period are 52.96 billion, 65.12 billion, and 82.09 billion yuan, with a projected price-to-earnings ratio of 22, 18, and 14 times respectively [4].