Bestechnic (Shanghai) (SH:688608) Guotou Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 156 CNY [3][10]. Core Views - The company has shown strong revenue growth, achieving 2.176 billion CNY in 2023, a 46.57% increase year-on-year, with Q4 2023 revenue reaching 612 million CNY, up 94.13% year-on-year [6][20]. - The company is benefiting from a recovery in consumer demand and the rapid adoption of its new generation BES2700 series chips [1][20]. - The company has made significant investments in R&D, totaling 550 million CNY in 2023, with Q4 R&D expenses reaching a record high of 183 million CNY [6][8]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 2.873 billion CNY, 3.591 billion CNY, and 4.309 billion CNY, respectively, with corresponding net profits of 267 million CNY, 496 million CNY, and 672 million CNY [8][11]. - The company’s PE ratios for the next three years are projected to be 45x, 24x, and 18x, indicating a favorable valuation compared to its growth prospects [10][26]. - The revenue growth rate is expected to be 32% in 2024, 25% in 2025, and 20% in 2026, reflecting a strong growth trajectory [26][28]. Product and Market Development - The company has successfully launched or upgraded several core technologies, including multi-core heterogeneous SoC technology and advanced audio systems, with the new BES2800 chip entering the market [2][7]. - The BES2700 series chips are widely used in TWS headphones, smartwatches, smart glasses, and hearing aids, with significant market penetration among major global brands [20][21]. - The company’s customer base includes leading Android phone brands and major audio manufacturers, indicating a strong market position [20].