On October 27 after market close, Gigadevice Semiconductor Inc. (ASX: 603986, share price 268.98 yuan, market cap 189.715 billion yuan) released its "Progress Announcement on the Repurchase of A-Shares Through Centralized Bidding," disclosing the latest execution status of its buyback plan: as of now, the company has cumulatively repurchased 3.0086 million shares through centralized bidding, accounting for 0.43% of total share capital, with a total amount paid of 1.115 billion yuan (excluding transaction fees).
Looking at the full-year trend, the company's stock price experienced a significant surge and subsequent pullback: based on the forward-adjusted closing price of 213.94 yuan on December 31, 2025, the forward-adjusted stock price cumulatively rose 25.73% from the beginning of 2026 to October 27; however, this gain mainly came from a sharp rally in the first half of the year. The intraday forward-adjusted high of 846.66 yuan for the year occurred on June 29, and based on the forward-adjusted closing price of 268.98 yuan on October 27, the stock has retreated more than 60% from that peak.
Buyback Spending Reaches 1.115 Billion Yuan, Price Range Widely Spread
According to Gigadevice Semiconductor Inc.'s after-market announcement on October 27, this buyback plan was proposed by company chairman Zhu Yiming and approved by the 14th meeting of the fifth board of directors and the second extraordinary shareholders' meeting of 2026. The plan allows the company to use no less than 1 billion yuan and no more than 2 billion yuan of its own funds and/or self-raised funds to repurchase shares through centralized bidding, with a maximum repurchase price of 750 yuan per share, within 6 months from the date of approval by the shareholders' meeting, namely from August 20, 2026 to February 19, 2027.
Unlike the previously common purpose of "use for employee stock ownership plans or equity incentives," the purpose of this buyback is explicitly stated as "reducing registered capital," meaning all repurchased shares will be used for cancellation. In terms of execution progress, the company has cumulatively repurchased 3.0086 million shares, accounting for 0.43% of total share capital; the highest repurchase price was 411.95 yuan per share, the lowest was 271.43 yuan per share, the average price was 370.64 yuan per share, and the cumulative payment amount was 1.115 billion yuan. Measured against the lower limit of 1 billion yuan, the company has completed a certain scale of the committed amount; measured against the upper limit of 2 billion yuan, there remains room for subsequent execution. The announcement also shows that the company will strictly comply with regulations, make opportunistic decisions and implement the buyback within the repurchase period based on market conditions, and timely fulfill information disclosure obligations in accordance with regulations.
It is worth noting that, looking back at the execution window of this buyback, the company began purchasing after the plan was approved by the shareholders' meeting on August 20, when the stock price was still at a relatively high level: the transaction price range from late August to September constituted the source of the highest repurchase price of 411.95 yuan. As the stock price fell back to around 270 yuan in late October, the company's repurchase cost range has been significantly higher than the current market price.
First-Half Revenue Up 178.67%, Memory Price Increases Drive Profit Surge
On the performance front, Gigadevice Semiconductor Inc.'s 2026 semi-annual report shows that the company's main business is the research and development, technical support, and sales of memory, microcontrollers, sensors, and analog chips, adopting a Fabless operating model, with products widely used in consumer electronics, automotive, industrial applications, PCs and servers, IoT, network communications, mobile devices, and other fields. During the reporting period, the company achieved operating revenue of 11.566 billion yuan, up 178.67% year-on-year; total profit of 7.666 billion yuan, up 1,186.15% year-on-year; net profit attributable to shareholders of the listed company of 6.857 billion yuan, up 1,091.50% year-on-year; non-GAAP net profit of 4.883 billion yuan, up 796.90% year-on-year; and net cash flow from operating activities of 6.048 billion yuan, up 531.47% year-on-year. Basic earnings per share were 9.83 yuan, and the weighted average return on equity was 23.13%, an increase of 19.72 percentage points from the same period last year.
In its semi-annual report, the company attributed the substantial growth in performance to: during the reporting period, supply in the memory chip industry was tight, the company's memory chip products saw both volume and price increases, and the profitability of the memory business improved; microcontroller products benefited from demand driven by industrial, consumer, and automotive sectors, achieving relatively good growth in shipment scale. In addition, the fair value of securities investments held by the company increased at the end of the period, and the corresponding fair value change gains recognized increased substantially, with this non-recurring gain and loss totaling 1.974 billion yuan.
On the asset side, at the end of the reporting period, the company's total assets were 42.405 billion yuan, up 98.19% year-on-year; net assets attributable to shareholders of the listed company were 37.283 billion yuan, up 96.15% year-on-year, mainly due to business performance growth, an increase in the fair value of other equity instrument investments, and an increase in capital reserves brought by the issuance of new shares in its H-share listing.
By business segment, memory chip revenue grew 245.44% year-on-year, with niche DRAM and SLC NAND Flash achieving high-speed year-on-year growth; the company's DDR4 has entered full mass production across various niche application fields, and self-developed LPDDR4X is progressing smoothly; NOR Flash sales increased across all application fields, with prices rising moderately. MCU product revenue grew 49.07% year-on-year, with the industrial sector being the largest source of revenue, and prices beginning to rise moderately in the second quarter. The sensor business saw overall revenue decline year-on-year due to a decrease in fingerprint chip revenue and sales volume.
In terms of research and development, during the reporting period, the company invested approximately 966 million yuan in R&D, up 40.72% year-on-year.
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