Bestechnic (Shanghai) (688608) 海通证券·2024-05-30 06:01Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook on its stock performance [5] Core Views - The company is positioned to become a leading supplier of AIoT master control platform chips, leveraging its BES2600 series Wi-Fi SoC chips which are already in mass production for smart speakers and smart home markets [4] - The company is expected to launch its 6nm BES2800 chip in 2024, which will significantly enhance CPU and NPU performance, further solidifying its position in the AIoT and wearable device markets [21] - The company's revenue is projected to grow from RMB 2.176 billion in 2023 to RMB 4.144 billion in 2026, with a CAGR of 23.5% [8][25] Financial Performance and Projections - Revenue for 2023 is estimated at RMB 2.176 billion, a 46.6% YoY increase, driven by the recovery of the global economy and increased demand for chips [10] - Net profit is expected to grow from RMB 124 million in 2023 to RMB 528 million in 2026, with a CAGR of 34.5% [8] - Gross margin is projected to remain stable at around 34.7%-35.1% from 2024 to 2026 [8][25] - EPS is forecasted to increase from RMB 1.03 in 2023 to RMB 4.40 in 2026 [8] Product and Market Analysis - The BES2700 series chip has gained significant market recognition and is widely used in TWS headphones, smartwatches, and smart glasses [21] - The company's smart Bluetooth audio chip business is expected to grow at a CAGR of 24% from 2024 to 2026, driven by the increasing adoption of AI-enabled voice recognition technology [10] - The "Other" product category, which includes smartwatch chips and smart home chips, is projected to grow at a CAGR of 33% from 2024 to 2026, supported by the global resurgence of interest in wearable devices [10] Valuation and Peer Comparison - The company's 2024E PS ratio is estimated at 6-7x, with a fair value range of RMB 135.25-157.79 per share [7] - Compared to peers, the company's valuation is in line with the industry average, with a 2024E PS ratio of 5.5x [24] Key Drivers - The successful mass production of the 6nm BES2800 chip in 2024 is expected to be a major growth driver, offering significant improvements in CPU and NPU performance [21] - The company's focus on AIoT and wearable devices aligns with market trends, providing a strong foundation for future growth [4][21]