Bestechnic (Shanghai) (688608)2024-10-29 03:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance [5]. Core Insights - The company reported a record high revenue of 2.473 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 58.12%. The net profit attributable to shareholders reached 289 million yuan, up 145.47% year-on-year. In Q3 2024 alone, revenue was 942 million yuan, showing a year-on-year increase of 44.01% and a quarter-on-quarter increase of 7.23% [1]. - The gross margin has been steadily improving, with Q3 2024 gross margin at 34.69%, an increase of 0.22 percentage points year-on-year and 1.30 percentage points quarter-on-quarter. The company has also reduced its sales, management, and R&D expenses compared to Q2 2024, demonstrating significant scale effects [2]. - The company has successfully launched its new generation of smart wearable chips, BES 2800, which utilizes 6nm FinFET technology and integrates multiple functionalities. This chip is being adopted by various clients for products such as headphones and smartwatches. Additionally, the company has developed a Wi-Fi connectivity chip that has also entered mass production, supporting the latest Wi-Fi 6 features [3]. - The company is positioned as a leading player in low-power AI System on Chip (SoC) products, with expectations for continued growth driven by new product launches. The projected net profit for 2024-2026 is estimated at 396 million yuan, 582 million yuan, and 820 million yuan, respectively, with significant growth rates of 220.46%, 46.87%, and 40.91% [4]. Financial Forecasts - The company is expected to achieve revenues of 2.176 billion yuan in 2023, with projections of 3.311 billion yuan in 2024, 4.386 billion yuan in 2025, and 5.532 billion yuan in 2026. The revenue growth rates are forecasted at 46.57%, 52.14%, 32.47%, and 26.13% for the respective years [4]. - The gross margin is anticipated to improve from 34.20% in 2023 to 38.85% in 2026, reflecting the company's ongoing efforts to optimize its product mix and reduce costs [4]. - The report also provides a detailed financial outlook, including projected earnings per share (EPS) of 1.03 yuan in 2024, increasing to 6.83 yuan by 2026, with corresponding price-to-earnings (PE) ratios of 72.02x, 49.03x, and 34.80x for the same years [4].