Bestechnic (Shanghai) (688608) 中国银河·2024-04-24 14:30Investment Rating - The report maintains a "Recommend" rating for the company (恒玄科技, 688608 SH) [4] Core Views - The company achieved significant growth in 2023 with revenue of 2 176 billion yuan (YoY +46 57%) and net profit of 124 million yuan (YoY +0 99%) [4] - In Q1 2024 the company reported revenue of 653 million yuan (YoY +70 27% QoQ +6 69%) and net profit of 28 million yuan (YoY turned positive QoQ +371 79%) [4] - The company's smart Bluetooth chip sales reached 71 8139 million units (YoY +99 37%) generating revenue of 1 169 billion yuan (YoY +59 28%) [4] - The company's gross margin in 2023 was 34 20% (YoY -5 17pct) due to rising wafer costs and intensified market competition [4] - The company's R&D investment remains stable with 592 R&D personnel accounting for 85 8% of total employees [4] - The company's inventory at the end of 2023 was approximately 660 million yuan a decrease of 290 million yuan YoY indicating reduced impairment pressure [4] - The company's gross margin in Q1 2024 rebounded to 32 93% (QoQ +0 38pct) driven by recovery in the consumer market [4] - The company's BES 2800 series product is expected to enter mass production in 2024 targeting the AIoT market [4] Financial Projections - The company's revenue is projected to be 2 751 billion yuan in 2024 3 523 billion yuan in 2025 and 4 463 billion yuan in 2026 [5] - Net profit is expected to reach 290 million yuan in 2024 441 million yuan in 2025 and 582 million yuan in 2026 [5] - The company's gross margin is forecasted to improve to 35 23% in 2024 36 34% in 2025 and 36 96% in 2026 [5] - The company's PE ratio is projected to be 51 13x in 2024 33 58x in 2025 and 25 47x in 2026 [5] Market and Product Analysis - The company's BES 2700 series products have seen rapid growth in applications such as TWS headphones smartwatches and smart glasses [4] - The BES 2800 series a 6nm smart wearable chip integrates multi-core CPU GPU NPU large-capacity storage low-power Wi-Fi and dual-mode Bluetooth [4] - The company is expected to continue expanding its market share in the AIoT sector [4]