TRANSSION(SH:688036) Changjiang Securities·2025-05-07 00:13Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company's revenue for 2024 reached 68.715 billion yuan, representing a year-on-year growth of 10.31%, while the net profit attributable to shareholders was 5.549 billion yuan, a slight increase of 0.22% [2][6] - In Q1 2025, the company reported a revenue of 13.004 billion yuan, a significant year-on-year decline of 25.45%, and a net profit of 490 million yuan, down 69.87% year-on-year [2][6] - The gross profit margin for 2024 was 21.28%, down 3.17 percentage points year-on-year, and the net profit margin was 8.08%, down 0.81 percentage points year-on-year [2][6] - For Q1 2025, the gross profit margin was 19.27%, a decrease of 2.88 percentage points year-on-year, and the net profit margin was 3.77%, down 5.55 percentage points year-on-year [2][6] Summary by Sections Financial Performance - The company experienced stable revenue and shipment growth in 2024, but faced pressure on gross margins due to industry competition and rising raw material costs [12] - The first quarter of 2024 was a peak for shipments, while Q1 2025 saw a notable decline in sales, particularly in the domestic market, which benefited from national subsidy policies [12] - The company maintained its pricing strategy in Q1 2025 until new models were released, leading to a decline in gross margins due to inventory reduction strategies [12] Market Position - The company has a solid foundation in the smartphone market and is gradually moving towards higher-end products [12] - It holds a 14.0% global smartphone market share, ranking third, and a 40% market share in the African smartphone market, ranking first [12] - The company is enhancing its brand presence in emerging markets through digital marketing, channel innovation, and new store formats [12] Business Expansion - The company is expanding its product categories, with the oraimo brand recognized as one of Africa's most beloved brands, leading to significant sales growth in digital products and accessories [12] - Collaborations with leading internet companies like NetEase and Tencent are underway to develop mobile internet products, with several applications exceeding 10 million monthly active users [12] - The company anticipates substantial growth in non-smartphone business segments in emerging markets, supported by strong user demand insights [12] Future Projections - The company is expected to achieve net profits of 5.628 billion yuan, 6.490 billion yuan, and 7.438 billion yuan for the years 2025, 2026, and 2027, respectively [12]