Bestechnic (Shanghai) (688608)2024-10-28 15:01Investment Rating - The report maintains an "Accumulate" rating for the company [2][3] Core Views - The company has shown a strong growth trend in Q3 2024, with a revenue of RMB 2.473 billion, representing a year-on-year increase of 58%. The gross margin is at 33.8%, down by 1.1 percentage points year-on-year, and the net profit attributable to shareholders is RMB 289 million, up 145% year-on-year [3] - The AI headphone segment is expected to contribute new growth points, with ByteDance's AI headphone "Ola Friend" being a notable product that integrates with its cloud model [3] - The company's SoC for smartwatches has gained brand recognition, with its chips being adopted in several major products, indicating a growing market share [3] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of RMB 2.473 billion, with a gross margin of 33.8% and a net profit of RMB 289 million [3] - Q3 2024 revenue reached RMB 942 million, showing a quarter-on-quarter increase of 7% and a year-on-year increase of 44% [3] - The company expects EPS for 2024, 2025, and 2026 to be RMB 3.28, RMB 4.85, and RMB 6.37 respectively, with corresponding PE ratios of 72.5, 49.0, and 37.3 [3][4] Market Position and Growth Potential - The company has successfully entered the AI headphone market, which is anticipated to enhance user experience in wearable devices [3] - The SoC for smartwatches has been recognized by major brands, with a significant presence in the supply chain of products like Samsung Galaxy Fit3 and OPPO Watch X [3] - The company is also venturing into the AR glasses market, which is expected to provide additional growth opportunities in the long term [3]