Investment Essentials

The market share of smart wearables has further increased, and the performance has reached a record high. With the rapid development of the global AI market and the emergence of emerging scenarios such as AI large models, the smart wearable market has maintained rapid growth, terminal applications have been continuously upgraded, and customers' requirements for main control chips have been further improved BES2700BP. The share of the smart watch market has further increased, and the operating income has grown rapidly, and it is expected that the operating income will be 3.263 billion yuan in 2024, a year-on-year increase of 49.94%; The net profit attributable to the parent company was 460 million yuan, a year-on-year increase of 271.70%.

Invest heavily in R&D to accelerate the evolution of wireless low-power SoC technology. The company adheres to R&D investment, and the annual R&D expenditure in 2024 will be about 621 million yuan, an increase of about 12.93% year-on-year, to accelerate the core technology research and development of wireless ultra-low-power computing SoC chips, in which multiple chip platforms can support the latest Wi-Fi6 functions, the latest BES2800 chips are based on the 6nm FinFET process and integrate Wi-Fi6 to achieve ultra-low-power wireless connection, while supporting Wi-Fi6 TWT technology and self-developed device wake-up and switching functions. It can accurately control the sleep and wake-up of the device, reducing the power consumption of the device when waiting for data. In the field of wireless short-range communication, including Starlight/ANT+ technology, it continues to evolve; In the intelligent audio and voice technology, the performance of the ANC algorithm is further improved, and the advanced sensor and neural network accelerator algorithms are used to more accurately perceive the changes in the surrounding noise, and the noise reduction process is completed in real time and accurately.

Investment Advice:

We expect the company to achieve revenue of 32.6/43.2/5.42 billion yuan in 2024/2025/2026, respectively; The net profit attributable to the parent company was 4.6/6.4/840 million yuan respectively, maintaining a "buy" rating.

Risk Warning:

the risk of loss of core technical talents; New product development and market expansion are less than expected; the risk of product upgrade and iteration; the risk of increased competition in the market; Customer validation is not progressing as expected; Risk of rising raw material costs