Bestechnic (Shanghai) (SH:688608) Tebon Securities·2024-07-15 00:00Investment Rating - The report maintains a "Buy" rating for the company [4][16]. Core Views - The company achieved a record high revenue of 878 million yuan in Q2, representing a year-over-year increase of 67% and a quarter-over-quarter increase of 34%. The net profit attributable to the parent company reached 120 million yuan, with a quarter-over-quarter increase of 336% and a gross margin of 33.40%, up 0.47 percentage points quarter-over-quarter [3][4]. - The company is expanding its market share in the smart wearable market by continuously launching new products and acquiring new customers. The results of the AIoT platform layout are gradually becoming evident, and the competitiveness of its products is steadily improving [4][19]. Financial Performance Summary - The company expects to achieve a revenue of 1.531 billion yuan in the first half of 2024, a year-over-year increase of 68%, and a net profit of 148 million yuan, a year-over-year increase of 200%. The non-recurring net profit is projected to be 112 million yuan, an increase of 1.06 billion yuan year-over-year [7][18]. - The revenue forecast for 2024-2026 has been revised upwards to 3.24 billion, 3.78 billion, and 4.52 billion yuan, respectively, with net profits expected to be 330 million, 440 million, and 570 million yuan [4][22]. - The company has maintained a gross margin of around 34.5% for the forecast period, with net profit margins expected to improve significantly [11][22]. Market and Product Development - The company has been actively developing its smart wearable product line since 2021, successfully launching its first-generation smart watch chip and the industry's first single-chip main control for sports watches. The products have entered major domestic manufacturers, indicating potential for growth alongside these partners [8][19]. - The new generation of smart wearable chip, BES2800, has achieved mass production and shipment, which is expected to enhance the company's market position in the wearable technology sector [19][20].