Bestechnic (Shanghai) (SH:688608) Shenwan Hongyuan Securities·2025-11-18 14:07Investment Rating - The report initiates coverage with a "Buy" rating for the company [7][6]. Core Insights - The company is a leader in low-power Bluetooth SoC, focusing on wearable devices and AIoT applications. It has established a strong market position with significant revenue growth projections for the coming years [6][7]. - The company is expected to achieve revenues of 42.53 billion, 54.41 billion, and 67.11 billion yuan from 2025 to 2027, with corresponding growth rates of 30%, 28%, and 23% [7][6]. - The forecasted net profit for the same period is 7.98 billion, 10.57 billion, and 13.00 billion yuan, indicating robust profitability growth [7][6]. Financial Data and Profit Forecast - Total revenue (in million yuan) for the years 2024 to 2027 is projected as follows: - 2024: 3,263 - 2025: 4,253 - 2026: 5,441 - 2027: 6,711 - Year-on-year growth rates for total revenue are expected to be 49.9% in 2024, 30.3% in 2025, 27.9% in 2026, and 23.3% in 2027 [5]. - Net profit (in million yuan) is forecasted as: - 2024: 460 - 2025: 798 - 2026: 1,057 - 2027: 1,300 - Year-on-year growth rates for net profit are projected at 272.5% in 2024, 73.2% in 2025, 32.5% in 2026, and 23.0% in 2027 [5]. Market Position and Product Development - The company has a 10% market share in TWS (True Wireless Stereo) earphone SoC shipments, ranking fourth globally in terms of shipment volume [6][8]. - The BES2800 chip, built on a 6nm process, is designed for high-end applications and has been adopted by major brands like Samsung for flagship products [6][8]. - The company is expanding its product offerings to include smart watch chips, with expected revenue of 1.045 billion yuan in 2024, reflecting a 116% year-on-year growth [6][8]. Competitive Advantages - The company has developed a platform-based strategy allowing a single chip to be used across multiple product categories, enhancing its competitive edge [28][29]. - The integration of advanced technologies such as AI, low-power consumption, and high-performance capabilities positions the company favorably against international competitors [9][29]. Valuation Metrics - As of November 17, 2025, the company's price-to-earnings (PE) ratio is projected to be 45 times for 2025 and 34 times for 2026, compared to an average PE of 44 times for comparable companies, indicating a potential upside of 29% [7][6].