TRANSSION(SH:688036) Minsheng Securities·2024-04-25 14:00Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - The company achieved a revenue of 62.295 billion yuan in 2023, representing a year-on-year increase of 33.69%, and a net profit attributable to shareholders of 5.537 billion yuan, up 122.93% year-on-year [1] - In Q1 2024, the company reported a revenue of 17.443 billion yuan, a year-on-year increase of 88.10%, and a net profit of 1.626 billion yuan, up 210.30% year-on-year [1] - The company maintains a strong market share in Africa, with over 40% in the smartphone segment, ranking first in the region [1] - The company is expanding into emerging markets such as South Asia, the Middle East, and Latin America, with significant market shares in Pakistan and Bangladesh [1] - The company is focusing on product upgrades and local market adaptations, launching high-end products like the TECNO PHANTOM V Fold and Infinix ZERO 30 5G [1] - The company is diversifying its business into digital accessories and home appliances, enhancing its growth potential [1] Financial Summary - The company forecasts revenues of 75.669 billion yuan for 2024, 91.107 billion yuan for 2025, and 104.684 billion yuan for 2026, with growth rates of 21.5%, 20.4%, and 14.9% respectively [2][5] - The net profit attributable to shareholders is projected to be 6.599 billion yuan in 2024, 7.859 billion yuan in 2025, and 9.181 billion yuan in 2026, with growth rates of 19.2%, 19.1%, and 16.8% respectively [2][5] - The earnings per share are expected to increase from 6.86 yuan in 2023 to 8.18 yuan in 2024, and further to 9.74 yuan in 2025 [2][5] - The company’s price-to-earnings (PE) ratio is projected to decrease from 21 in 2023 to 18 in 2024, and further to 15 in 2025 [2][5]