Bestechnic (Shanghai) (SH:688608) KAIYUAN SECURITIES·2024-07-17 07:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][19][27] Core Views - The company is expected to achieve significant revenue growth in 2024, with a projected revenue of 1.531 billion yuan for H1 2024, representing a year-on-year increase of 68.24%. The net profit attributable to shareholders is expected to reach 148 million yuan, up 199.68% year-on-year [4][5] - The report highlights the recovery in downstream demand and the successful mass production of new products as key drivers for revenue growth. The company is benefiting from the increasing demand in the smart wearable and smart home sectors, as well as the successful launch of its new generation of wearable chips [5][20] Financial Performance Summary - For 2024, the company is expected to generate revenues of 3.374 billion yuan, a 55% increase year-on-year, with net profit attributable to shareholders projected at 403 million yuan, reflecting a 226.3% increase [6][8] - The gross margin is expected to stabilize, with Q2 2024 gross margin projected at approximately 33.40%, an increase of 0.47 percentage points quarter-on-quarter [5][6] - The earnings per share (EPS) for 2024 is estimated at 3.36 yuan, with a price-to-earnings (P/E) ratio of 51.9 times [6][8] Market Outlook - The global smart watch shipment is forecasted to grow by 17% in 2024, indicating a sustained recovery in downstream demand [5][20] - The company is expanding its market share in the smart watch and smart band sectors, which is expected to contribute to continued revenue growth [5][20]