Edifier has achieved solid results in 2023, which is mainly due to two aspects. First of all, with the recovery of demand for AIoT terminals such as smart headphones and speakers, the company's smart hardware business has developed steadily. Secondly, the company continues to invest in brand building, and the brand power has been gradually improved. This improvement in brand power is also reflected in the company's financial data, with revenue in the first three quarters increasing by 22% year-on-year, and net profit excluding non-attributable to the parent company increasing by 81% year-on-year, indicating that the company's profitability and market competitiveness have been significantly improved.
Looking forward to the future, the core growth momentum of Edifier lies in the following aspects. First of all, the company actively deploys overseas markets, and strives to keep pace with the domestic market and further expand its market share. By setting up subsidiaries and establishing its own marketing team in overseas markets, Edifier can better meet the needs of local consumers and increase brand awareness and market share. Secondly, the company actively promotes the R&D and application of AI-related technologies to adapt to the rapid development and implementation of AI terminals, so as to take the lead in future market competition. The company can use its own professional technology and experience in the audio field, combined with AI technology, to develop smarter and more efficient smart headphones, speakers and other products to meet the increasing needs of consumers. Finally, the company also plans to expand into new categories such as assistive listening and assistive listening, and use its expertise and experience in the audio field to enter new market areas. By launching a variety of hearing aid headphones and medical-grade hearing aid products, Edifier can meet the needs of more consumers and expand its market share.
Specifically, one of the growth momentum of Edifier lies in the steady development of its basic market. The company ranks among the top in the domestic TWS headset market share, and through continuous product innovation and brand building, the market share is expected to further increase. At the same time, the company has also made positive progress in the expansion of overseas markets, gradually setting up subsidiaries and establishing its own marketing team to further develop overseas markets. This aggressive overseas market strategy will bring more development opportunities for Edifier.
The second growth momentum lies in the layout of Edifier in the field of AI. With the rapid development of AI technology, the demand for smart terminals is also escalating. As a third-party audio brand, Edifier has the natural advantage of cooperating with existing cloud service providers. At the same time, large language models at home and abroad, such as llama2 and Tongyi Qianwen, support open source, and Edifier can customize and fine-tune based on open source models to develop its own cloud services. This strategy will enable Edifier to transform from a hardware brand to a hardware + cloud integrated service provider, so as to gain a greater advantage in the future market competition.
The third growth momentum lies in the layout of Edifier in the field of health. With years of experience in the R&D and production of audio products, Edifier has launched a variety of hearing aid headphone products, and further launched medical-grade hearing aid products. These new products have two product forms, neck-mount and TWS, support APP independent fitting, up to 48 channels loudness compensation, etc., and have successfully obtained the relevant licenses of national medical devices. This layout of the health field will bring new growth points to the ramblers. At the same time, with the trend of aging population and the improvement of hearing health awareness, the hearing aid market has broad prospects. By launching medical-grade hearing aid products, Edifier can meet the needs of more consumers and expand its market share.
Overall, Edifier has achieved solid performance and continuous brand power improvement in 2023. Looking ahead, the company will continue to actively deploy overseas markets, AI fields and health fields to achieve sustainable and steady development. As investors, we should pay attention to the strategic layout and execution of Edifier, as well as its future market performance and development potential.
Note: The data and opinions in this article are provided by the CITIC Electronics team and are for reference only.
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