TRANSSION(SH:688036) Soochow Securities·2024-04-26 02:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in 2023 exceeded expectations, with revenue of 62.3 billion yuan, a year-on-year increase of 33.7%, and a net profit attributable to shareholders of 5.5 billion yuan, up 122.9% year-on-year [2][3] - The growth in 2023 was driven by an increase in market share in existing markets and expansion into emerging markets, with a total smartphone shipment of approximately 190 million units, capturing 14% of the global smartphone market, ranking third [3] - The company is focusing on product structure upgrades and cost optimization, resulting in an overall gross margin of 24.5% in 2023, an increase of 3.6 percentage points year-on-year [3] - The company is also enhancing operational efficiency, with a decrease in expense ratios benefiting from scale growth [3] Financial Performance and Forecast - The company achieved a revenue of 62.3 billion yuan in 2023, with a projected revenue of 74.7 billion yuan for 2024, representing a year-on-year growth of 19.92% [2][3] - The net profit attributable to shareholders is expected to reach 6.5 billion yuan in 2024, reflecting a growth of 17.5% year-on-year [2][3] - The report projects net profits of 65.1 billion yuan, 75.4 billion yuan, and 88.3 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 18, 16, and 13 times [3][8] Product Development and Market Strategy - The company is developing AI technologies to create differentiated products for various regional user needs, including the launch of Universal Tone multi-skin tone imaging technology and AI assistant Ella [3] - The company is exploring new business models and expanding its product categories, including smart home devices and mobile value-added services, to create new revenue growth points [3] - The introduction of new products such as the Pova 6 Pro smartphone and AI-driven devices indicates the company's commitment to innovation and market expansion [3]