On April 25, Transsion Holdings, known as the "King of African Mobile Phones", (688036. SH) staged a "high platform diving", the stock price fell 10.88% to close at 145.18 yuan per share, and the company's current market value is 117.1 billion yuan, ranking still in the top five in the science and technology innovation board companies.
On the news side, recently, Transsion Holdings announced its results for the first quarter of 2024, with revenue of 17.443 billion yuan, a year-on-year increase of 88.10%, and a net profit attributable to the parent company of 1.626 billion yuan, a significant increase of 210.30% year-on-year.
Previously, the company has released its 2023 annual results, Transsion Holdings achieved revenue of 62.295 billion yuan last year, a year-on-year increase of 33.69%, and a net profit attributable to the parent company of 5.537 billion yuan, a year-on-year increase of 122.93%.
2023 is still a harsh winter for the consumer electronics industry, although there are some signs of recovery since the fourth quarter, but most mobile phone manufacturers are not having a good time.
According to IDC data, global smartphone shipments in 2023 will fall 3.2% year-on-year to 1.17 billion units, which is also the lowest level of shipments in 10 years. TRANSSION'S GLOBAL MOBILE PHONE SALES IN 2023 WILL REACH 94.4 MILLION UNITS, A SIGNIFICANT INCREASE OF 30.8% YEAR-ON-YEAR, WHILE DOMESTIC XIAOMI AND VIVO SALES DECLINED YEAR-ON-YEAR LAST YEAR.
Since the beginning of this year, Transsion Holdings has continued to gain momentum. Global smartphone shipments in the first quarter increased by 7.8% year-on-year, reaching 28.5 million units in the first quarter, a year-on-year growth rate of 84.9%.
The reason behind this may be that Transsion Holdings is deeply involved in the African market, and in 2023, Transsion's share of the African smartphone market will exceed 40%, ranking first in Africa. In addition, in Pakistan, Bangladesh and other regions, Transsion's market share is far ahead.
At a time when the fierce war among domestic mobile phone manufacturers was in full swing, as the vanguard of Chinese consumer electronics companies going overseas, Transsion Holdings made a fortune, which not only enhanced the friendship between China and the third world, but also enjoyed the dividends of the rapid growth of the smartphone market.
At the same time as announcing the results, Transsion Holdings made a "generous" move, planning to distribute a cash dividend of 2.42 billion yuan (tax included), 4 shares for every 10 shares and a cash dividend of 30 yuan (tax included). The amount of cash dividends accounted for 43.70% of the company's net profit attributable to shareholders of listed companies in 2023.
At the beginning of this year, the company also temporarily announced that the year-end bonus of employees had risen by 30%, which attracted many netizens to call "this is someone else's company".
Although the "achievements are remarkable", Transsion Holdings still suffers from a slap in the face. This may be the consistent feature of large A-shares, and the good is all the negative. Since October 2022, the company has risen by more than 200%, which seems to be a maverick among a number of consumer electronics companies.
In addition, the smartphone market has entered the stock game, and high-growth markets such as Africa will also attract other mobile phone giants to compete for layout, or affect the adjustment of the valuation level of Transsion Holdings.
However, on the whole, as the hegemon of Africa, Transsion Holdings' long-term localized operation strategy is appropriate, and its brand image is deeply rooted in the hearts of the people.
Author: Flying Fish