Transsion Holdings' market value rises to over 100 billion yuan

On November 4th, Transsion Holdings (688036. SH) closed at 126.6 yuan with a market value of 101.28 billion yuan. This is already the third day that the market value of Transsion Holdings has exceeded 100 billion yuan.

On October 28th, Transsion Holdings released its third quarter report data showing that the company achieved operating revenue of 24.971 billion yuan in the first three quarters, a year-on-year increase of 48.15%, almost equaling the total revenue of 25.346 billion yuan in 2019; The net profit reached 1.954 billion yuan, a year-on-year increase of 50.23%, surpassing last year's full year net profit of 1.793 billion yuan.

Among them, the company achieved a revenue of 11.125 billion yuan in the third quarter, a year-on-year increase of 75.17%, and a net profit of 863 million yuan, a year-on-year increase of 78.72%.

Guoxin Securities analyzed that the company's contract liabilities reached a new high in the third quarter, indicating that the company's orders remained full in the fourth quarter. Therefore, it is expected that the company's revenue and profit growth in the fourth quarter will continue to maintain the high level of the third quarter.

Even though the results of the fourth quarter are still unknown, Transsion Holdings is highly likely to deliver a good performance this year.

Against the trend growth, the shipment volume of smart machines in new markets will receive a markup

Behind the high increase in revenue and net profit of Transsion Holdings in the first three quarters, in addition to stable growth in the African market, it is also closely related to the company's achievements in exploring new markets with its smartphones.

Zheshang Securities revealed that the main driving force for the increase in the shipment volume of Transsion Holdings' smartphones comes from the recovery of the Indian smartphone market and the continuous increase in other market shares.

According to Omdia data, in the second quarter of 2020, under the severe epidemic situation, only Apple and Transsion had a year-on-year positive growth in smartphone shipments worldwide. Among them, Transsion's market share in Bangladesh has risen to nearly 20%; In Pakistan, Transsion has already occupied the main market share of smartphones in the second quarter, with a market share of over 40%.

From the perspective of income structure, the proportion of intelligent machine revenue of Transsion Holdings is also further increasing. According to the 2020 semi annual report, the company's smartphone revenue was 10.267 billion yuan, accounting for over 77% of the total revenue. This proportion has increased by nearly 6 percentage points compared to 71.47% in 2019.

Diversified strategic layout

On the basis of its mobile business, Transsion is also increasing its exploration of other profit models.

With its high market share in Africa, Media Holdings has achieved extensive advertising and application coverage through mobile terminals, initially forming a business ecological model of "mobile phone+mobile Internet plus+home appliances, digital accessories". Internet business has covered music, short video, online payment, news aggregation, browser and other aspects. As of the end of the first half of this year, there were 7 apps with over 10 million monthly active users.

It is reported that three mobile phones under Transsion Holdings, TECNO, itel, and Infinix, are all equipped with intelligent terminal operating systems (OS) based on the Android system platform for secondary development and deep customization. Tool applications such as app stores, game centers, advertising distribution platforms, and mobile phone managers have been developed around Transsion OS.

According to the "10th edition of the comprehensive performance report of advertising platforms" released by AppsFlyer, Transsion Holdings ranks fourth in the mobile internet industry, with its global app installation share increasing by 143%. In the regional growth rankings, Transsion Mobile Internet ranks first in terms of growth in Africa.

Transsion Holdings stated that the growth of its mobile internet business is closely related to the company's implementation of a diversified strategic layout.

With the continuous improvement of network communication infrastructure in emerging markets such as Africa, mobile internet services will open up new growth opportunities for Transsion.

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