GLONGHUI, August 16 | Zheshang Securities Research Report on the 15th pointed out that Qisheng Technology (603610.SH)'s performance in 23Q2 exceeded expectations. Judging that the main factor in the increase in operating profit margin was the scale effect brought about by increased capacity utilization. The company is a leading OEM of smart electric beds in the world. Domestic independent brands continue to develop, have a good medium- to long-term growth logic, short-term order inflection points are showing, and Q3 expectations are better. Maintain a “buy” rating. The company's overseas demand has gradually recovered, and the domestic own-brand retail business is developing smoothly. By channel, 23H1's overseas revenue was 1,393 billion yuan (+5.3%), accounting for 94.31% of the main revenue; domestic business revenue was 87 billion yuan (+33%), and domestic channel marketing benefits continued to be evident in the early stages. The company's overseas orders recovered steadily with the recovery in demand for downstream customer terminals (22Q4/23Q1/23Q2 TSI revenue of -13%/-3%/+5%, respectively). 22Q2 began due to high external demand pressure and a sharp drop in the willingness of the company's core customers to place orders. The bank believes that due to the low base effect plus a certain lag between orders and acceptance, the 23Q3 company's revenue growth expectations are even more beautiful.