GigaDevice(SH:603986) Ju Chao Zi Xun·2026-01-14 09:58Core Viewpoint - The successful listing of Zhaoyi Innovation on the Hong Kong Stock Exchange marks a significant step in its dual capital platform strategy, reflecting a broader trend of domestic semiconductor companies leveraging capital markets for global expansion [1][14]. Group 1: Listing and Market Performance - Zhaoyi Innovation was listed on January 13, 2023, with an oversubscription rate of 542 times, raising approximately 46.84 billion HKD, netting around 46.11 billion HKD after expenses [3][7]. - The stock surged by 45% on its debut, reaching a market capitalization of over 160 billion HKD, indicating strong market confidence in its growth potential [1][7]. - The company’s IPO is part of a larger trend, with 95 semiconductor companies in China pursuing or accelerating IPO processes, 40 of which are targeting the Hong Kong market [1][14]. Group 2: Company Overview and Product Portfolio - Founded in 2005, Zhaoyi Innovation specializes in integrated circuit design, offering a diverse range of chip products including Flash, DRAM, microcontrollers, and sensor chips for various applications [3][8]. - It is the only company globally ranked in the top 10 for NOR Flash, SLC NAND Flash, niche DRAM, and MCU, showcasing its competitive edge in the semiconductor industry [8][10]. Group 3: Financial Performance - The company reported revenues of 8.13 billion CNY in 2022, 5.76 billion CNY in 2023, and projected 7.36 billion CNY for 2024, with corresponding gross profits of 3.7 billion CNY, 1.75 billion CNY, and 2.62 billion CNY [10][11]. - The gross margin for 2022 was 45.5%, which decreased to 30.3% in 2023 but is expected to recover to 35.7% in 2024, indicating fluctuations in profitability [10][11]. Group 4: Strategic Intent and Future Outlook - The IPO proceeds will be allocated to enhance R&D capabilities (40%), strategic investments (35%), global expansion (9%), operational efficiency (6%), and working capital (10%) [15]. - The company aims to leverage the current upcycle in the semiconductor industry, driven by AI demand, to enhance its market position and technological capabilities [14][17]. - Zhaoyi Innovation's dual listing strategy is expected to strengthen its international brand presence and facilitate access to global resources, aligning with the trend of domestic semiconductor firms pursuing international growth [14][15].