TRANSSION(SH:688036) SINOLINK SECURITIES·2024-04-25 01:30Investment Rating - The report maintains a "Buy" rating for the company, reflecting an expected price increase of over 15% in the next 6-12 months [8][10]. Core Insights - The company reported Q1 2024 revenue of 17.4 billion RMB, a year-on-year increase of 88%, and a net profit of 1.63 billion RMB, up 210% year-on-year [1]. - The company achieved a smartphone market share of 14.0% globally in 2023, ranking third among smartphone manufacturers, with a significant increase in market share in emerging markets [1]. - The gross margin for Q1 2024 was 22%, slightly down from the previous year, while the net margin improved to 9.3% due to scale effects [1]. Performance Analysis - In 2023, the company shipped approximately 194 million smartphones, a 24% increase year-on-year [1]. - The company’s revenue from Africa and Asia reached 220 billion RMB and 393 billion RMB respectively, with growth rates of 7% and 55% [1]. - The company’s net profit forecast for 2024 and 2025 has been raised to 6.4 billion RMB and 7.9 billion RMB respectively, with an expected net profit of 9.2 billion RMB in 2026 [1][4]. Financial Metrics - The company’s revenue for 2023 was 62.3 billion RMB, with a growth rate of 33.7% compared to 2022 [4]. - The diluted earnings per share for 2023 was 6.865 RMB, with a projected increase to 7.972 RMB in 2024 [4]. - The price-to-earnings (P/E) ratio is projected to be 20, 17, and 14 times for 2024, 2025, and 2026 respectively [1][4].