Bestechnic (Shanghai) (688608) 长城证券·2024-11-04 09:17Investment Rating - Maintain "Overweight" rating [1][5] Core Views - Q3 performance exceeded expectations, driven by strong growth in wearable devices and AIoT demand [1][2] - Revenue and net profit for Q3 reached record highs, with significant year-over-year growth [1][2] - The company's new BES2800 chip is expected to contribute to revenue growth in the second half of 2024 [3][5] - The company is well-positioned to benefit from the development of edge AI in the wearable device market [3][4] Financial Performance - Q3 2024 revenue: RMB 942 million, up 44.01% YoY and 7.23% QoQ [1] - Q3 2024 net profit: RMB 141 million, up 106.45% YoY and 17.85% QoQ [1] - 2024E revenue: RMB 3.308 billion, up 52.0% YoY [1] - 2024E net profit: RMB 399 million, up 223.1% YoY [1] - 2024E EPS: RMB 3.33, with a P/E ratio of 67.6x [1][5] Market and Product Development - The company continues to lead in the TWS headset market and is expanding its presence in the smartwatch and smart glasses markets [2] - The BES2800 chip, based on 6nm FinFET technology, has started mass production and is being adopted by major clients [3] - The company's SoC chips are highly compatible with the development of edge AI, enhancing the performance of wearable devices [3][4] Future Outlook - The company expects continued improvement in gross margins in Q4 2024 and beyond [2] - Revenue and net profit are projected to grow significantly from 2024 to 2026, driven by new product launches and market expansion [1][5]