Bestechnic (Shanghai) (SH:688608) Xiangcai Securities·2025-06-05 08:49Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][8]. Core Insights - The company is a leading player in the domestic wearable SoC market, focusing on ultra-low power technology and wireless communication solutions for smart wearable and smart home devices [4]. - The revenue from smartwatch chips is continuously increasing, significantly contributing to the company's high growth [5]. - The AI glasses market presents a vast opportunity, potentially becoming the company's third growth curve [6]. Financial Performance - In 2024, the company reported a revenue of 3.263 billion yuan, a year-on-year increase of 49.94%, and a net profit of 460 million yuan, up 272.47% [5]. - For Q1 2025, the company achieved a revenue of 999.5 million yuan, reflecting a 52.25% year-on-year growth, with a net profit of 191 million yuan, a staggering increase of 590.22% [5]. - The gross margin improved from 32.93% in Q1 2024 to 38.47% in Q1 2025, primarily due to the rising revenue share from smartwatch chips [5]. Growth Projections - The company is expected to achieve net profits of 815 million yuan, 1.257 billion yuan, and 1.725 billion yuan for the years 2025, 2026, and 2027, respectively, with growth rates of 77.0%, 54.2%, and 37.2% [8][24]. - The projected revenue for 2025 is 4.793 billion yuan, with a year-on-year growth of 46.9% [10]. Market Position - The company has established itself in the supply chains of major global Android smartphone brands and leading audio manufacturers, enhancing its market presence [7][24]. - The company is currently providing MCU-level SoC solutions for AI glasses and is developing SoC-level solutions, indicating a strategic move into a new product line [6][24].