Bestechnic (Shanghai) (SH:688608) KAIYUAN SECURITIES·2024-10-26 14:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant growth in Q3 2024, with revenue reaching 2.473 billion yuan, a year-on-year increase of 58.12%, and a net profit attributable to shareholders of 289 million yuan, up 145.47% year-on-year [4] - The report highlights the strong performance driven by the recovery in downstream markets and the launch of new products, particularly the BES2800 chip, which is expected to enhance the company's growth potential [4][6] - The forecast for net profit for 2024-2026 has been slightly adjusted downwards due to a slower-than-expected recovery in downstream demand, with projected figures of 403 million yuan, 576 million yuan, and 805 million yuan respectively [4] Financial Performance Summary - For Q1-Q3 2024, the company achieved a gross margin of 33.76%, a slight decrease of 1.08 percentage points year-on-year, while Q3 alone saw a gross margin of 34.69%, an increase of 0.22 percentage points year-on-year [4] - The company’s revenue for Q3 2024 was 942 million yuan, reflecting a year-on-year growth of 44.01% and a quarter-on-quarter increase of 7.23% [4] - The company’s earnings per share (EPS) for 2024 is projected to be 3.36 yuan, with a P/E ratio of 70.7 times [7] Market Demand and Product Launch - The report indicates a continuous growth in downstream demand, particularly in the smart wearable and smart home markets, with global wearable shipments expected to increase by 8.8% year-on-year in Q1 2024 [6] - The BES2800 chip has begun mass production and is being integrated into various products, which is anticipated to drive market share growth for the company [6]