FOURSEMI (03625), set to list this Tuesday, demonstrated impressive performance in today's pre-market trading. The stock surged to a high of HKD 85, representing an increase of approximately 112.5% from its IPO price. The stock opened strong and maintained its upward trajectory, indicating intense investor demand. At the time of writing, FOURSEMI was trading at HKD 82, a 105% gain over its offer price of HKD 40. Based on a board lot of 100 shares, this translates to a profit of HKD 4,200 per lot, excluding fees. FOURSEMI's performance solidly announces the arrival of a new leader in the AI chip sector.
The company's IPO was oversubscribed by more than 3,117 times, with over 110,000 applicants, triggering the maximum clawback mechanism under the Chapter 18C rules to 20%. A 15% over-allotment option (greenshoe) is also in place for stability. Throughout the pre-market session, FOURSEMI showed steady and strong gains, leading the market. As one of the year's most heavily oversubscribed hard-tech chip listings, the high pre-market sentiment and capital inflow fully validate the market's strong confidence in both the AI audio chip sector and the company's fundamentals.
The significant strength in pre-market trading provides ideal returns for IPO investors and sets a robust tone for its official listing tomorrow. Since the beginning of the year, the AI chip and domestic substitution themes have continued to show independent market strength. FOURSEMI, with its unique market position, fully self-developed technology, portfolio of top-tier clients, and explosive financial performance, has become a highly scarce and high-growth candidate in this cycle.
The company is a leading Chinese designer of smart audio and haptic feedback chips, operating on a Fabless, capital-light model. It specializes in the R&D and design of amplifier audio chips and haptic feedback chips and is recognized as a national-level "Little Giant" enterprise specializing in specific sectors. The company possesses significant technological barriers, with several products being first-of-their-kind in China, successfully breaking the monopoly of international giants. Its automotive-grade audio chips have obtained AEC-Q100 certification, enabling successful entry into the smart car supply chain.
Financial growth has been explosive, with 2024 revenue surging 136.3% year-over-year. Gross margin continued to recover to 20%, losses narrowed substantially, and a clear inflection point towards profitability is evident. In 2024, the company's global chip shipments reached 460 million units. It holds a 9.2% global market share in amplifier audio chips, firmly ranking among the top three worldwide, and an 18% market share in China, placing it second.
The client portfolio is impressive. The company has successfully entered Samsung's in-house supply system and also serves leading global smartphone brands such as Xiaomi, vivo, Honor, and Transsion. It collaborates with smart home leaders like Skyworth and Hisense, and has entered the supply chains of automakers including BYD and Changan, demonstrating high-quality customers and deep competitive moats.
In the Hong Kong market, leading AI hard-tech companies consistently command high valuation premiums. Historical trends strongly suggest that the combination of thousand-fold oversubscription热度,稀缺 leadership attributes, and strong pre-market performance creates a powerful setup. A stable and strong debut on Tuesday, March 31st, is highly anticipated, likely showcasing a unique upward trend for AI audio chips. Long-term, FOURSEMI is poised to fully capitalize on the dual growth drivers of AI device proliferation and domestic substitution, potentially growing into a global leader in smart audio chips, making it a stock worthy of close market attention.
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