Bestechnic (Shanghai) (SH:688608) AVIC Securities·2024-10-29 14:55Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has demonstrated rapid revenue growth, achieving a revenue of 2.473 billion yuan in 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, with a year-on-year growth of 145.47% [1] - In Q3 2024, the company reported a revenue of 942 million yuan, a year-on-year increase of 44.01% and a quarter-on-quarter increase of 7.23%. The net profit attributable to shareholders for the same quarter was 141 million yuan, reflecting a year-on-year growth of 106.45% and a quarter-on-quarter growth of 17.85% [1] - The company is benefiting from a scale effect due to revenue growth and a reduction in expense ratios, with the gross profit margin in Q3 reaching 34.68%, an increase of 1.29 percentage points from Q2 [1] - The launch of AI hardware products, particularly the AI headphones by ByteDance, is expected to drive growth in wearable devices, which aligns with the company's focus on low-power computing SoC chips [1] Financial Performance Summary - The company is projected to achieve net profits of 357 million yuan, 538 million yuan, and 708 million yuan for the years 2024, 2025, and 2026 respectively. The current stock price corresponds to PE ratios of 83.33, 55.31, and 41.99 for the respective years [1][2] - The revenue for 2024 is estimated to be 3.117 billion yuan, with a growth rate of 43.21%. The net profit for the same year is expected to be 357 million yuan, reflecting a growth rate of 188.63% [2]