On September 8, storage module leader LONGSYS officially listed on the Hong Kong Stock Exchange's Main Board, completing its dual listing, yet its H shares broke below the issue price on the first trading day. As of press time, the stock was trading at HK$232.8, down 1.36%. The company's A shares on the mainland are also declining, currently down 1.01%.
The H-share offer price was set at a roughly 40% discount to the A-share closing price on the same period. On September 4, the A shares closed at RMB 347.00, while the H-share offer price was HK$236.00 per share, equivalent to approximately RMB 202. This substantial markdown, however, failed to provide lasting support for the stock's market debut.
LONGSYS primarily procures wafers and processes them into storage products, positioning itself as a midstream storage solution provider in the industry chain. Through this Hong Kong listing, the company expects to raise net proceeds of approximately HK$6.02 billion, of which around 78.3% will be allocated to chip design and advanced storage product research and development. This marks its transformation from a "module leader" into an integrated platform combining "chip design and module manufacturing."
According to its prospectus, Shenzhen Longsys Electronics Co.,Ltd. achieved revenue of RMB 24.088 billion in the first half of 2026, a year-on-year increase of 136.3%. Its gross margin surged from 11.0% in the same period last year to 58.2%, while net profit for the period reached RMB 10.718 billion, compared to just RMB 41 million in the prior-year period.
The listing comes at a cyclical peak for the storage industry. Market analysts suggest that if the H shares had traded at par or at a premium to the A-share price, it would signal international capital's endorsement of the storage cycle's strength, providing support for the A-share narrative. However, with the significant discount seen in Hong Kong, a re-rating of A-share storage stocks may be on the horizon.
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