Bestechnic (Shanghai) (SH:688608) Orient Securities·2025-05-13 08:52Investment Rating - The report maintains a "Buy" rating for the company with a target price of 447.20 CNY [5][11] Core Insights - The company reported a 50% year-on-year increase in revenue for 2024, reaching 3.26 billion CNY, and a 272% increase in net profit attributable to shareholders, amounting to 460 million CNY. In Q1 2025, revenue reached 990 million CNY, a 52.3% year-on-year growth, with net profit at 191 million CNY, reflecting a 590% increase [1][2] - The company is transitioning towards a platform-based chip company, with significant growth in its smart wearable chip segment, which generated 1.05 billion CNY in revenue in 2024, a 116% increase, contributing approximately 32% to total revenue [10] - The new generation of smart wearable chips, BES2800, has entered mass production, utilizing 6nm FinFET technology, which significantly reduces power consumption and supports various applications in smartwatches, smart glasses, and audio devices [10] Financial Performance Summary - Revenue projections for 2025-2027 are 4.71 billion CNY, 6.04 billion CNY, and 7.76 billion CNY, respectively, with year-on-year growth rates of 44%, 28%, and 28% [4] - The company's net profit attributable to shareholders is expected to reach 837 million CNY in 2025, with a growth rate of 82%, and further increase to 1.83 billion CNY by 2027 [4] - The earnings per share (EPS) forecast for 2025-2027 is 6.97 CNY, 10.40 CNY, and 15.23 CNY, respectively [2][11] Research and Development - The company plans to invest 617 million CNY in R&D in 2024, a 12% increase from the previous year, focusing on low-power wireless computing platforms and audio processing technologies [10]