Securities Star News, on October 31, 2024, Transsion Holdings (688036) announced that the company will hold a performance briefing on October 29, 2024, BofA Securities, LMR Partners, Huaxi Capital, Huaxin Securities Co., Ltd., Hui'an Fund Management Co., Ltd., HSBC Qianhai Securities Co., Ltd., Huihua Wealth Management Co., Ltd., Huiquan Fund Management Co., Ltd., China Universal Fund Management Co., Ltd., Huisheng Fund Management Co., Ltd., Harvest Fund Management Co., Ltd., CCB International Securities Co., Ltd., Millennium Capital Management (Hong Kong) Limited, Jiangxi Duzi Investment Management Co., Ltd., Bank of Communications Schroder Fund Management Co., Ltd., Greenwood Asset Management Hong Kong Co., Ltd., Jiutai Fund Management Co., Ltd., Kaiyu Asset Management (Shanghai) Co., Ltd., Kaiyuan Securities Co., Ltd., Dragonstone Capital Management Co., Ltd., Luxin International Capital Co., Ltd., Merrill Lynch (Asia Pacific) Co., Ltd., Minsheng Jiayin Fund Management Co., Ltd., Morgan Stanley Investment Management, J.P. 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Investment Co., Ltd., Goldman Sachs (Asia) L.L.C., Goldman Sachs Asset Management (Hong Kong) Co., Ltd., GaoTeng International Asset Management Co., Ltd., ICBC Asset Management (Global) Co., Ltd., Everbright Securities Co., Ltd., Guangdong Dongsheng Private Equity Securities Investment Fund Management Co., Ltd., Guangdong Juzhou Investment Co., Ltd., Guangdong Zhengyuan Private Equity Fund Management Co., Ltd., IDG Capital Management (Hong Kong) Co., Ltd., GF Securities Co., Ltd., Guangzhou Yunxi Private Equity Securities Investment Fund Management Co., Ltd., Guishan Private Equity Fund Management (Suzhou) Co., Ltd., Guodu Securities Co., Ltd., Guohai Securities Co., Ltd., Guolian Fund Management Co., Ltd., Guosheng Securities Co., Ltd., Guotai Fund Management Co., Ltd., Guotai Junan Securities Co., Ltd., UBS SDIC Fund Management Co., Ltd., Informa Pharma Intelligence, SDIC Securities Co., Ltd., Guosen Securities Co., Ltd., Hainan Junyang Private Equity Fund Management Co., Ltd., Hainan Qihong Private Equity Fund Management Co., Ltd., Haitong Securities Co., Ltd., Korea Investment Corporation, Hangzhou Jinchengsheng Asset Management Co., Ltd., Hangzhou Zhidao Investment Co., Ltd., Haocheng Asset Management Co., Ltd., Heyong Investment Management (Beijing) Co., Ltd., JK Capital Management Limited, Hengqin Chunzhen Investment Management Center (Limited Partnership), Sequoia Capital Equity Investment Management ( Tianjin) Co., Ltd., Hongming Capital Financial Holdings Co., Ltd., Hunan Yuancheng Private Equity Fund Management Co., Ltd., Citigroup Global Markets Asia Co., Ltd., Huachuang Securities Co., Ltd., Huafu Securities Co., Ltd., Quam Fund Management Co., Ltd., Huatai Financial Holdings (Hong Kong) Co., Ltd., Huatai Securities Co., Ltd. participated.

The details are as follows:

Q: Since the beginning of this year, the company's net cash flow from operating activities has decreased more year-on-year?

Answer: The decrease in net cash flow from operating activities was mainly due to the large increase in cash for the company's purchase of goods and payment for labor services in the first three quarters of this year compared with the same period last year. Due to the fact that the company's purchase payment has a certain account period, the purchase payment due from January to September 2024 is larger, and the payment has increased more year-on-year.

Q: What is the change and trend of the company's gross profit margin in the third quarter?

A: In the third quarter of 2024, the company's gross margin was 21.72%, an increase from the second quarter. Gross profit margin is comprehensively affected by factors such as competitive landscape, cost changes, and the company's price strategy. From what we have learned so far, the price pressure of upstream components is reducing, and we will also make adjustments according to cost changes and market competition in the future to maintain a reasonable gross profit margin.

Q: What is the change in the company's inventory?

Answer: As of the end of the third quarter, the company's inventory scale was 11.237 billion yuan, a decrease from the end of the second quarter, the company's inventory turnover days are at a reasonable and normal level, the company will continue to monitor the inventory situation, according to different costs, sales to adopt the corresponding inventory management strategy.

Q: What is the layout of the company's AI mobile phone business?

A: In March this year, the company's brand TECNO announced the launch of TECNO IOS at MWC 2024. Since September, the company's brands have released a number of mobile phones equipped with I functions, including the PHNTOM V Fold25G, the second-generation folding screen flagship of the PHNTOM series, which is equipped with the new TECNO I, with a series of I functions including real-time call translation, I wallpaper, I image elimination, I cutout, recording to note-to-note.

In July this year, in the field of I translation, the translation team of TRANSSION TEX I Center achieved another good result in the field of small languages, winning the championship of three automatic machine evaluation in the translation track and one runner-up. In addition, in September this year, the joint artificial intelligence laboratory jointly established by Transsion Holdings and MediaTek was officially unveiled in Shenzhen. The two parties will integrate superior technical resources in the field of artificial intelligence, focus on the application innovation of large language models, gent agents, I voice, imaging and other fields on the mobile phone, provide more generative l device-side deployment and optimization solutions, and jointly explore I agent services and mobile application scenarios for the public.

Q: What is the company's future growth trend?

A: The company's sales area is mainly concentrated in Africa, South Asia, Southeast Asia, the Middle East and Latin America and other global emerging market countries, and the company will continue to cultivate emerging market countries in the future. From a regional perspective, the company first entered Africa and achieved a high and stable market share, and then entered South Asia, and also achieved a high market share in Pakistan and Bangladesh. At this stage, the company has entered more markets outside Africa and South Asia, including Southeast Asia, Latin America, the Middle East, Eastern Europe, etc., compared with Africa, Bangladesh, Pakistan and other countries and regions where the company entered earlier, the company's market share in new markets is relatively low, and there is still a lot of room for improvement in the future.

In addition, at present, emerging market countries are still in the market development trend of "switching from feature phones to smart phones", and on the whole, the penetration rate of smart phones in emerging market countries is lower than that of North America, Western Europe, mature Asia-Pacific developed economies and the Chinese market, and feature phones for smart phones are still an important factor driving the growth of the smart phone market in emerging markets. With the improvement of economic development level and per capita consumption capacity, under the general trend of intelligent development of mobile phones, the smart phone market in emerging markets has great potential.

Q: What are the competitive advantages as the company continues to enter new markets? How does the company face competition from other vendors?

A: After years of development, the company has advantages in branding, localized operation, R&D, channels, supply chain management, integrated after-sales service and management. The company will pay more attention to itself, continue to improve the company's localization and differentiation level, and focus on customer value to do a good job in the company's products and services.

Transsion Holdings (688036) main business: design, R&D, production, sales and brand operation of smart terminals with mobile phones as the core.

Transsion Holdings' third quarter report for 2024 shows that the company's main revenue was 51.252 billion yuan, an increase of 19.13% year-on-year; the net profit attributable to the parent company was 3.903 billion yuan, an increase of 0.5% year-on-year; deducted non-net profit of 3.248 billion yuan, a year-on-year decrease of 7.44%; In the third quarter of 2024, the company's single-quarter main revenue was 16.693 billion yuan, a year-on-year decrease of 7.22%; the net profit attributable to the parent company in a single quarter was 1.051 billion yuan, a year-on-year decrease of 41.02%; The non-net profit deducted in a single quarter was 820 million yuan, a year-on-year decrease of 52.72%; The debt ratio was 56.22%, the investment income was 500 million yuan, the financial expenses were 57.5541 million yuan, and the gross profit margin was 21.59%.

A total of 17 institutions have rated the stock in the last 90 days, with 16 having a buy rating and 1 having an overweight rating. The average institutional price target over the last 90 days is 109.33.

Here's the detailed earnings forecast information:

Margin data shows that the stock has a net financing inflow of 333 million in the past three months, with an increase in the financing balance, and a net outflow of 6.3625 million in securities borrowing and lending, with a decrease in the balance of securities borrowing and lending.

The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.