Bestechnic (Shanghai) (688608) 长江证券·2024-11-01 04:12Investment Rating - The investment rating for the company is "Buy" and it is maintained [2]. Core Views - The company's Q3 performance exceeded expectations, with revenue reaching 2.473 billion yuan, a year-on-year increase of 58.12%, and a net profit of 289 million yuan, up 145.47% year-on-year [3][4]. - The growth in revenue is attributed to the rapid expansion of the wearable market, with the company leading in the TWS headphone market share and benefiting from the traditional peak season for consumer electronics [4]. - The company is expected to benefit from the growing demand for AIoT, aiming to establish itself as a platform company for AIoT control chips, leveraging its strengths in various technology fields [5]. Summary by Sections Financial Performance - In Q3, the company achieved 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 for the quarter was 141 million yuan, up 106.45% year-on-year and 17.85% quarter-on-quarter [3][4]. - The gross margin has shown a quarterly improvement, reaching 34.68% in Q3, benefiting from product structure optimization and lower upstream costs [4]. Market Position and Future Outlook - The company is well-positioned in the TWS headphone market and is expanding its presence in the smart wearable market, with Bluetooth audio products and smartwatches/wristbands accounting for 65% and 29% of revenue, respectively [4]. - The company forecasts net profits of 390 million yuan, 540 million yuan, and 698 million yuan for 2024, 2025, and 2026, respectively, indicating strong growth potential [5].