Bestechnic: Demand Under Pressure, Watch AI Glasses
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Nomura initiates coverage on Bestechnic (688608.SH) with a Neutral rating and a target price of RMB 187, implying 6.4% upside potential.
The firm notes that demand for Bluetooth system-on-chip solutions faces significant pressure as the true wireless stereo earbud and smart speaker markets mature. In 2025, standard Bluetooth SoC revenue declined 18.0% year-over-year to RMB 430 million, while smart Bluetooth chip revenue fell 3.6%. Consequently, the stock has underperformed the CSI 300 Index by 9.5 percentage points over the past month.
Conversely, the smartwatch and wristband business demonstrates robust momentum. Other business revenue, primarily comprising smart wearables, surged 32.8% year-over-year in 2025, with gross margins expanding 4.1 percentage points to 43.3%, boosted by domestic consumer subsidies and rapid market share gains.
The company recently launched the BES6100 series, a new 6-nanometer wearable SoC targeting emerging applications such as AI smart glasses. Nomura projects this segment will achieve a 35.1% revenue compound annual growth rate from 2026 to 2028, accounting for 61% of total revenue by 2028. The RMB 187 target price relies on a 40x target multiple, representing a premium to the 28x peer average, reflecting anticipated earnings growth. Key catalysts include faster new product ramps and stronger-than-expected AI glasses demand.