Bestechnic (Shanghai) (SH:688608) Zhongyuan Securities·2025-05-07 12:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1][17]. Core Views - The company achieved a revenue of 3.263 billion yuan in 2024, representing a year-on-year increase of 49.94%, and a net profit of 460 million yuan, up 272.47% year-on-year [5]. - In Q1 2025, the company reported a revenue of 999.5 million yuan, a year-on-year increase of 52.25%, and a net profit of 191 million yuan, up 590.22% year-on-year [5]. - The new generation 6nm chip, BES2800, has been mass-produced and is expected to drive continuous high growth for the company [9]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 34.71%, which improved by 0.51% year-on-year, while the gross margin for Q1 2025 was 38.47%, an increase of 5.54% year-on-year [8]. - The net profit margin for 2024 was 14.11%, up 8.43% year-on-year, and for Q1 2025, it was 19.16%, an increase of 14.93% year-on-year [8]. Market Position - The company has seen a significant increase in its market share in the smart wearable market, with revenue from smart watch and band chips reaching 1.045 billion yuan in 2024, a year-on-year increase of 116% [8]. - The product structure is diversifying, with Bluetooth audio chips accounting for approximately 62% and smart watch/band chips about 32% of total revenue in 2024 [8]. Future Outlook - The company is expected to achieve revenues of 4.8 billion yuan, 6.19 billion yuan, and 7.594 billion yuan for the years 2025, 2026, and 2027, respectively [10]. - The projected net profits for the same years are 874 million yuan, 1.182 billion yuan, and 1.541 billion yuan, respectively [10].