Bestechnic (Shanghai) (SH:688608) KAIYUAN SECURITIES·2024-08-28 06:14Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved rapid growth in H1 2024, with revenue reaching 1.531 billion yuan, a year-on-year increase of 68.26%, and net profit attributable to shareholders of 148 million yuan, up 199.76% year-on-year [1] - The report anticipates continued growth driven by new product launches and a recovery in downstream demand, leading to an upward revision of net profit forecasts for 2024-2026 [1][2] Financial Performance Summary - In H1 2024, the company reported revenue of 1.531 billion yuan, with a gross margin of 33.19%, a slight decrease of 1.91 percentage points year-on-year [1] - For Q2 2024, the company achieved revenue of 878 million yuan, a year-on-year increase of 66.80%, and a net profit of 120 million yuan, up 140.00% year-on-year [1] - The company’s net profit forecasts for 2024, 2025, and 2026 are adjusted to 407 million yuan, 691 million yuan, and 891 million yuan, respectively, with corresponding P/E ratios of 44.5, 26.2, and 20.4 [1][4] Market Demand and Product Development - The company benefits from the growing demand in the smart wearable and smart home markets, with its smart watch and band chip products covering the entire market segment [2] - The global wearable device shipment in Q1 2024 was 110 million units, a year-on-year increase of 8.8%, with the domestic smart watch market seeing a shipment of 9.1 million units, up 54.1% year-on-year [3] - The new generation of wearable chips, BES2800, has begun mass production and is expected to contribute to revenue growth in H2 2024 [3]