Bestechnic (Shanghai) (SH:688608) Changjiang Securities·2024-04-26 06:02Investment Rating - The report maintains a "Buy" rating for the company [32]. Core Insights - The company reported a significant revenue increase of 70.27% year-on-year, achieving 653 million yuan in revenue for Q1 2024, and successfully turning a profit with a net profit of 28 million yuan [32][25]. - The growth in revenue is attributed to the recovery in the consumer electronics market, particularly a notable increase in demand for earphone chips, as well as new customer projects in smartwatches and wristbands [32][25]. - The company is expected to benefit from a gradual recovery in the IOT consumer market and aims to enhance its market share in high-end products, particularly with the successful introduction of 6nm products [25][32]. Summary by Sections Financial Performance - For Q1 2024, the company achieved a gross margin of 32.93%, which showed a year-on-year decline but an increase compared to the previous quarter [32]. - The projected net profits for 2024, 2025, and 2026 are estimated to be 292 million yuan, 418 million yuan, and 550 million yuan respectively, indicating a positive growth trajectory [33]. Market Outlook - The company is positioned to capitalize on the growing trends in the TWS earphone market and aims to establish itself as a leading platform for IOT control chips, leveraging its technological capabilities across various fields such as RF, WiFi, Bluetooth, and audio processing [33][25]. - The report expresses confidence in the company's ability to navigate the competitive landscape and achieve sustained growth in the IOT sector, driven by technological advancements and strong brand partnerships [33][25].