Bestechnic (Shanghai) (SH:688608) Guotai Junan Securities·2024-10-25 01:39Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 300.00 CNY from the previous forecast of 222.60 CNY [3][9]. Core Insights - The company's Q3 performance shows steady growth, with revenue reaching 942 million CNY, a year-on-year increase of 44.00% and a quarter-on-quarter increase of 7.28%, marking a historical high for Q3. The net profit attributable to shareholders was 142 million CNY, up 106.57% year-on-year and 17.52% quarter-on-quarter [9]. - The growth is primarily driven by increasing demand in the smart wearable and smart home markets, with a gross margin of 34.69% in Q3, showing a sequential improvement [9]. - The company is well-positioned to benefit from the rapid growth in AI edge computing, particularly in products like headphones, smartwatches, and AI glasses [9]. Summary by Sections Financial Performance - For Q3, the company achieved a revenue of 942 million CNY, with a year-on-year growth of 44.00% and a quarter-on-quarter growth of 7.28%. The net profit attributable to shareholders was 142 million CNY, reflecting a year-on-year increase of 106.57% and a quarter-on-quarter increase of 17.52% [9]. - The report forecasts EPS for 2024, 2025, and 2026 to be 3.18 CNY, 4.12 CNY, and 5.31 CNY respectively, with a projected PE ratio of 94.3 for 2024 [9][10]. Market Trends - The company is experiencing significant growth in the low-power path and edge AI development, with strong demand for headphones, smartwatches, and AI glasses contributing to rapid growth [9]. - The new generation of BES 2800 process technology, which integrates WiFi6, has led to increased production and sales in overseas markets, contributing significantly to Q3 revenue [9]. Future Outlook - The report anticipates continued improvement in gross margins and revenue growth driven by the increasing penetration of 6nm technology in headphones and the expansion of market share in smartwatches and AI glasses [9].