Bestechnic (Shanghai) (SH:688608) KAIYUAN SECURITIES·2025-04-29 07:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a significant revenue increase of 49.94% year-on-year in 2024, reaching 3.263 billion yuan, and a net profit increase of 272.47%, totaling 460 million yuan [3][5] - In Q1 2025, the company reported record high revenue of 999.5 million yuan, up 52.25% year-on-year, and a net profit of 191 million yuan, up 590.22% year-on-year [3][4] - The company is benefiting from the growth of the end-side AI market and the increasing demand for smart wearable devices, supported by national subsidies [3][4] - The introduction of the new BES2800 chip, utilizing 6nm technology, is expected to enhance the company's product offerings in the smart wearable market [4] Financial Summary - Revenue projections for 2025-2027 are updated to 4.875 billion yuan, 6.241 billion yuan, and 8.085 billion yuan respectively, with corresponding net profits of 976 million yuan, 1.253 billion yuan, and 1.674 billion yuan [3][5] - The gross margin is expected to improve, reaching 38.6% in 2025 and 39.2% in 2026 [5] - The company's R&D expenses for 2024 were 617 million yuan, reflecting a 12.27% increase year-on-year, indicating a commitment to maintaining competitive advantages [3][5] Valuation Metrics - The price-to-earnings (P/E) ratios for 2025-2027 are projected to be 48.8, 38.0, and 28.4 respectively [5] - The price-to-book (P/B) ratios for the same period are expected to be 6.4, 5.5, and 4.6 [5] - The company is anticipated to achieve a return on equity (ROE) of 13.0% in 2025, increasing to 16.1% by 2027 [5]