GIGADEVICE (03986) saw its shares rise more than 13%, reaching a new historical peak of HK$686.5. At the time of writing, the stock was up 12.71% at HK$678.5, with a turnover of HK$707 million. The surge follows news that Yangtze Memory Technologies, another major domestic memory chip manufacturer, has initiated its IPO process, hot on the heels of ChangXin Memory Technologies. On May 19th, the China Securities Regulatory Commission website indicated that Yangtze Memory Technologies Holding Co., Ltd., a leading domestic memory chip company, has commenced IPO guidance, with CITIC Securities and China Securities as its advisors. These two companies represent the two most critical segments within the memory industry. Public information shows that among A-share listed companies, GIGADEVICE is most closely associated with ChangXin Memory Technologies. According to its prospectus, GIGADEVICE holds a 1.8% stake in ChangXin. Furthermore, GIGADEVICE's Chairman, Zhu Yiming, also serves as the Chairman of ChangXin Memory Technologies. Central China Securities noted that GIGADEVICE is a leading domestic company in niche memory and MCUs. With the memory cycle in an upward trend, the company's niche DRAM, SLC NAND, and NOR Flash products are experiencing both volume and price increases. GIGADEVICE is actively expanding into customized storage solutions, making successful inroads with clients across multiple sectors, and is expected to generate revenue from this segment by 2026. The company is also continuously enriching its MCU product portfolio, deepening its presence in high-quality consumer and industrial markets, and enhancing its MCU product technological capabilities.
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