BES6100 Entering Client Sampling Stage

Bestechnic Shanghai reported 9M26 revenue of RMB2,147mn (-26.81% YoY), attributable NP of RMB216mn (-57.03% YoY), and recurring NP of RMB188mn (-59.41% YoY). In 3Q26, revenue was RMB796mn (-20.03% YoY, +16.66% QoQ), attributable NP was RMB44mn (-77.42% YoY, -45.85% QoQ), and recurring NP was RMB37mn (-79.20% YoY, -50.47% QoQ). 3Q is the traditional peak season for consumer electronics, and downstream demand remained stable with modest growth, driving further QoQ revenue growth in 3Q26. Gross margin stayed elevated at 41.94% (+4.91pp YoY, -0.44pp QoQ), supported by product mix optimization. The YoY and QoQ decline in attributable NP was owing to a significant increase in quarterly R&D expenses from tape-out fee accruals. The company continues to expand in smart wearables and innovative hardware. Its next-gen flagship wearable chip has been taped out and entered the customer sampling stage, which we expect to unlock growth opportunities. Maintain OVERWEIGHT.