TRANSSION(SH:688036) Guohai Securities·2025-09-10 05:34Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has shown improvement in gross margin quarter-on-quarter, with multiple growth points in smart devices, product diversification, and mobile internet services [2] - In H1 2025, the company achieved revenue of 29.077 billion yuan, a year-on-year decrease of 15.86%, and a net profit attributable to shareholders of 1.213 billion yuan, down 57.48% year-on-year [5] - The company maintains a leading market share in Africa and is steadily increasing its presence in Southeast Asia, with a global smartphone market share of 7.9% [5] - The company is actively implementing a diversification strategy, expanding into digital accessories and home appliances, and developing mobile internet products and services [5] Financial Performance - In Q2 2025, the company reported revenue of 16.074 billion yuan, a year-on-year decrease of 6.09%, and a net profit attributable to shareholders of 723 million yuan, down 41.03% year-on-year [5] - The gross margin for Q2 2025 was 20.76%, showing a quarter-on-quarter increase of 1.49 percentage points [5] - The company forecasts revenues of 70.568 billion yuan, 76.988 billion yuan, and 89.404 billion yuan for 2025, 2026, and 2027 respectively, with corresponding growth rates of 3%, 9%, and 16% [8] Market Position - The company holds a 51% market share in the African smartphone market, maintaining its first-place position, while its market share in Southeast Asia has increased to 18% [5] - The weakening US dollar since late 2024 is expected to enhance consumer purchasing power in emerging markets, potentially boosting the company's smartphone shipments [5] Strategic Initiatives - The company is focusing on product diversification and mobile internet services as new growth drivers, with plans to leverage its high market share in smartphones to capture more accessory market share [5] - The company is also developing AI technologies to enhance user experience with smart devices [5]