TRANSSION(SH:688036) Guohai Securities·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for Transsion Holdings (688036) [1][14] Core Views - Strong demand in emerging markets and diversified layout lead to growth for Transsion Holdings [1][14] - In 2023, the company achieved revenue of 62.392 billion yuan, a year-on-year increase of 33.90%, and a net profit attributable to shareholders of 5.503 billion yuan, a year-on-year increase of 121.55% [3][16] - The company is focusing on expanding into new markets while maintaining its leading position in traditional markets like Africa and South Asia [5][18] Summary by Sections Financial Performance - In 2023, Transsion Holdings reported a revenue of 62.392 billion yuan, up 33.90% year-on-year, and a net profit of 5.503 billion yuan, up 121.55% year-on-year [3][16] - The fourth quarter of 2023 saw revenue of 19.37 billion yuan, a year-on-year increase of 83.36% and a quarter-on-quarter increase of 7.65% [3][16] - The company’s global shipment volume reached 94.9 million units in 2023, a year-on-year increase of 30.8%, making it the fourth largest smartphone manufacturer globally with an 8.6% market share in Q4 2023 [5][18] Market Expansion - Transsion Holdings has successfully expanded into new emerging markets, with shipment growth rates in the Middle East, Latin America, and Europe reaching 54%, 110%, and 68% respectively in 2023 [5][18] - The company is enhancing its product structure and focusing on high-end products, including the launch of its first foldable smartphone, TECNO PHANTOM V Fold, and the TECNO PHANTOM X2 series [5][18] Future Outlook - The report predicts that Transsion Holdings will continue to benefit from the recovery of the global smartphone market, with expected revenues of 84.547 billion yuan and 105.337 billion yuan for 2024 and 2025 respectively [19][20] - The company is expected to maintain a strong competitive edge in emerging markets, supported by its established market presence and ongoing product innovation [5][19]