TRANSSION(SH:688036) Hua Yuan Zheng Quan·2025-05-08 07:42Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has passed the low point in its mobile phone business, with significant changes in new business areas. The smartphone business is benefiting from replacement demand in emerging markets, and inventory reduction has been completed, indicating a potential operational turning point [5][6] - The company reported a revenue of 68.715 billion yuan in 2024, a year-on-year increase of 10.31%, and a net profit of 5.549 billion yuan, a slight increase of 0.22% year-on-year. However, the first quarter of 2025 saw a decline in revenue and net profit due to market competition and supply chain costs [6][7] - The company is leveraging the AI wave to build a comprehensive AIoT smart ecosystem, focusing on local user needs in emerging markets and enhancing its product offerings through AI technology [6][7] Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 68.715 billion yuan, with a year-on-year growth rate of 10.31%. The net profit was 5.549 billion yuan, showing a slight increase of 0.22% [6][8] - For the first quarter of 2025, the company reported a revenue of 130.04 billion yuan, a year-on-year decrease of 25.45%, and a net profit of 4.90 billion yuan, down 69.87% year-on-year [6][8] Market Position - The company ranked fourth globally in smartphone shipments in 2024, with a market share of 8.6% and a total shipment of 106.9 million units [6][7] Future Outlook - The company expects net profits for 2025-2027 to be 6.096 billion, 6.785 billion, and 7.603 billion yuan, respectively, with year-on-year growth rates of 9.85%, 11.31%, and 12.05% [7][8] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 14.49, 13.02, and 11.62 times, respectively [7][8]