Bestechnic (Shanghai) (SH:688608) Shenwan Hongyuan Securities·2025-12-05 02:38Group 1: Company Overview - The report focuses on Hengxuan Technology (688608.SH), a leader in low-power Bluetooth SoC, primarily targeting the mid-to-high-end brand market. The company has been dedicated to wireless ultra-low-power SoC chip design for 10 years, specializing in applications for TWS headphones, smartwatches, and AI glasses [4][10][13] - Hengxuan's products are widely used in devices from major brands such as Samsung, OPPO, Huawei, Xiaomi, Honor, and Xiaotiancai, showcasing its strong market presence and technological capabilities [10][13] Group 2: Financial Projections - The report provides a buy rating for Hengxuan Technology, forecasting revenue for 2025-2027 to be 42.53 billion, 54.41 billion, and 67.11 billion respectively, with growth rates of 30%, 28%, and 23% [4][11] - Projected net profit for the same period is estimated at 7.98 billion, 10.57 billion, and 13.00 billion, with corresponding PE ratios of 45 and 34 for 2025 and 2026, indicating a 29% upside potential compared to comparable companies [4][11] Group 3: Product and Market Position - Hengxuan's TWS headphone SoC has a market share of approximately 10%, with an average selling price (ASP) close to 10 yuan per unit, positioning it as a leader among domestic manufacturers [10][11] - The company is also expanding its capabilities in smartwatch chips, with expected revenue of 10.45 billion in 2024, representing a 116% year-on-year growth and an output of over 40 million units [11][12] Group 4: Technological Advancements - Hengxuan has developed a unified software and algorithm framework that enhances customer stickiness by allowing multiple products to share a development environment [10][13] - The BES2800 chip, built on a 6nm process, integrates advanced features such as dual-core Cortex-M55 and self-developed NPU, balancing energy efficiency with local AI inference capabilities [10][13]