Bestechnic (Shanghai) (SH:688608) China Post Securities·2025-05-08 10:51Investment Rating - The report maintains a "Buy" rating for the company [10][16]. Core Insights - The company achieved a record high revenue of 3.263 billion yuan in 2024, representing a year-on-year growth of 49.94%, and a net profit of 460 million yuan, up 272.47% year-on-year [4][5]. - In Q1 2025, the company reported revenue of 999.5 million yuan, a 52.25% increase year-on-year, and a net profit of 191 million yuan, reflecting a staggering growth of 590.22% year-on-year [4][5]. - The growth in revenue and profit is attributed to the expanding smart wearable market, increased sales of smart watch chips, and improved average selling prices due to product iterations [5][6]. Revenue and Profit Forecast - The company is projected to achieve revenues of 4.856 billion yuan, 6.196 billion yuan, and 7.765 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 780.91 million yuan, 1.07561 billion yuan, and 1.47177 billion yuan [10][12]. Financial Metrics - The company’s PE ratios for 2025, 2026, and 2027 are expected to be 67, 49, and 36, respectively [10][12]. - The gross margin for Q1 2025 reached 38.47%, an increase of 5.54 percentage points year-on-year [5][6]. Market Position and Product Development - The company has successfully expanded its smart watch and band chip business, with revenue contribution rising from approximately 22% in 2023 to around 32% in 2024 [6]. - The new generation chip, BES2800, is expected to be widely applied in TWS earphones, smart watches, and smart glasses in 2025, utilizing advanced 6nm FinFET technology [6][9].