TRANSSION(SH:688036) Huaxin Securities·2024-04-29 13:00Investment Rating - The report maintains a "Buy" rating for the company [1][7] Core Views - The company has exceeded performance expectations, with significant growth potential driven by its AIGC and diversification strategy [1][4] - The company reported a revenue of 62.295 billion yuan in 2023, a year-on-year increase of 33.69%, and a net profit of 5.537 billion yuan, up 122.93% [3][4] - In Q1 2024, the company achieved a revenue of 17.443 billion yuan, representing an 88.10% year-on-year growth, and a net profit of 1.626 billion yuan, up 210.30% [3][4] Summary by Sections Market Performance - The company's market share in the global smartphone market increased by 4.2 percentage points to 9.9% in Q1 2024 [5] - The company holds over 40% market share in the African smartphone market, ranking first, and has significant shares in South Asia [5] Financial Performance - The company’s overall shipment volume increased, leading to a revenue growth of 88.10% in Q1 2024 [4] - The management, sales, and R&D expense ratios decreased, resulting in an overall decline of 5.97 percentage points in period expense ratios [4] - Despite a 1.21 percentage point decline in gross margin due to rising supply chain costs, net profit grew significantly due to revenue and gross profit increases [4] Strategic Initiatives - The company emphasizes AIGC and has launched TECNO AIOS to enhance user experience across various mobile applications [6] - The company is focusing on local technology innovations and has developed products tailored to the needs of emerging markets [5][6] Earnings Forecast - Revenue projections for 2024, 2025, and 2026 are 74.409 billion yuan, 87.669 billion yuan, and 99.900 billion yuan, respectively [7] - The expected EPS for the same years are 8.03 yuan, 9.40 yuan, and 11.29 yuan, with corresponding PE ratios of 18, 16, and 13 [7]