TRANSSION(688036) 光大证券·2024-08-31 04:14Investment Rating - The investment rating for the company is "Buy" (maintained) with a current price of 80.06 CNY [1] Core Views - The company's gross margin stabilized in Q2 2024, and its expansion in emerging markets is progressing smoothly [1] - The company achieved a revenue of 34.558 billion CNY in H1 2024, a year-on-year increase of 38.07%, and a net profit attributable to shareholders of 2.852 billion CNY, up 35.70% year-on-year [4] - The company is actively implementing a diversified strategy, expanding into digital accessories and home appliances in emerging markets [5] Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of 17.12 billion CNY, a year-on-year increase of 8.6%, but a quarter-on-quarter decrease of 1.9% [4] - The gross margin for Q2 2024 is estimated at 22.48%, reflecting a quarter-on-quarter increase of 0.33 percentage points [4] - The company’s revenue from smart devices reached 29.367 billion CNY, a year-on-year growth of approximately 46%, with a gross margin of 20.22% [4] Market Position - The company holds a leading market share in emerging markets, with a global smartphone market share of 14.4%, ranking second among global smartphone brands [4] - In the smart device market, the company ranks fourth globally with a 9.1% market share [4] Strategic Initiatives - The company has developed several AI technologies to enhance user experience, including custom ISP chip technology and various camera innovations [5] - The launch of TECNO AI introduces a new generation of smart assistants, focusing on enhancing user interaction and efficiency [5] Profit Forecast and Valuation - The profit forecast for the company has been adjusted upwards for 2024 and 2025, with net profit estimates of 5.861 billion CNY and 6.670 billion CNY respectively [5] - The estimated P/E ratios for 2024, 2025, and 2026 are 15X, 14X, and 13X respectively, maintaining a "Buy" rating [5]