Bestechnic (Shanghai) (SH:688608) Ping An Securities·2025-09-05 06:46Investment Rating - The investment rating for the company is "Recommended" (maintained) with a stock price of 243.3 yuan [1]. Core Views - The company reported a revenue of 1.938 billion yuan for the first half of 2025, representing a year-on-year growth of 26.58%, and a net profit attributable to shareholders of 305 million yuan, which is a 106.45% increase year-on-year [3][6]. - The company focuses on low-power wireless computing SoC chips, continuously increasing its market share in the smart wearable and smart home markets, which has led to a significant rise in both gross and net profit margins [6][7]. - The BES2800 chip has been successfully introduced and is rapidly gaining traction in the market, further solidifying the company's technological leadership [7]. Financial Performance Summary - Revenue projections for the company from 2023 to 2027 are as follows: 2.176 billion yuan in 2023, 3.263 billion yuan in 2024, 4.511 billion yuan in 2025, 6.036 billion yuan in 2026, and 7.583 billion yuan in 2027, with year-on-year growth rates of 46.6%, 49.9%, 38.2%, 33.8%, and 25.6% respectively [5]. - Net profit projections for the same period are: 124 million yuan in 2023, 460 million yuan in 2024, 807 million yuan in 2025, 1.208 billion yuan in 2026, and 1.597 billion yuan in 2027, with year-on-year growth rates of 1.0%, 272.5%, 75.2%, 49.7%, and 32.2% respectively [5]. - The company's gross margin is expected to improve from 34.2% in 2023 to 41.2% in 2027, while the net margin is projected to increase from 5.7% to 21.1% over the same period [5][9]. Market Position and Strategy - The company has successfully onboarded new clients in the smart watch market, including Xiaotianzi and Songtuo, and has maintained rapid growth in chip shipments for smart watches [7]. - The company is evolving towards becoming a platform chip company in the low-power wireless computing SoC field, with applications extending to smart glasses and wireless microphones [7]. - The company has established a strong brand influence and technical capability in the industry, recognized by clients for its product offerings [7].