On February 21, bestechnic (688608.SH), a leading manufacturer of Bluetooth audio chips, announced that its revenue in 2023 was 2.176 billion yuan, up 47% year-on-year, and it realized a net profit of 124 million yuan, up 1.01% year-on-year.
 

 

Notably, its net profit after non-recurring gains and losses still amounted to RMB 29 million, an increase of 137% year-on-year. The change in this figure shows that, thanks to the consumer electronics industry gradually back to ambiguous, bestechnic market operating level is also sailing into the positive development of the track, a brush with the shadow of the 2022 double decline in revenue and net profit.

 

However, now bestechnic has encountered a development bottleneck, in the headset bluetooth chip is encountering the challenge of rising competitors, in the field of smartwatch chip not only does not occupy a dominant position, and even the market ranking even the top ten can not be among.

 

 

Bestechnic said in the announcement, last year, as the consumer electronics market gradually warmed up, smart wearable and smart home industry resumed growth, the company's downstream customers increased demand for chips. In addition, the company developed a new generation of BES2700 series wearable main control chip widely used in TWS headphones, smart watches and other terminal products, promoting the company's revenue to reach a new height since its inception.

 

Chaodian Think Tank editorial noted that, including the rising competitors, including the thing Qi micro pressure, bestechnic last year, the comprehensive gross profit margin of the product year-on-year decline of more than 5 percentage points, only 34.2%, which is a chip company, is a lower level.

 

Industry insiders also said that bestechnic has now encountered a development bottleneck.

 

On the one hand, Huawei consumer electronics is one of its major customers, now Huawei's chip business is recovering, the future procurement volume may be difficult to expand.

 

On the other hand, although bestechnic into the field of smartwatch chips, but compared to Renesas, UV Spreading Rui and Jieli and other domestic counterparts, there is still a huge gap.

 

Chaodian statistics show that in the field of smart watch main control chip, bestechnic market share is almost negligible, market share ranking even failed to rank among the top ten, ranked in front of its domestic manufacturers have violet spread sharp, Hui top, Huawei, Qualcomm, Jie Li, torch core and easy to trillion micro and so on.

 

Perhaps based on this, bestechnic last year in the research and development expenses rose to reach 551 million yuan, an increase of 25%.

 

However, the capital market still believes that Hengxuan Technology is in a development bottleneck, 2024 since the company's share price has been hovering around 120 yuan, compared with more than 300 yuan share price in 2021, has been cut.