Gigadevice (03986) rose more than 7% in morning trading. At the time of writing, the stock was up 4.06% to HK$71.7, with a turnover of HK$732 million.

ChangXin Technology recently updated its IPO prospectus for the STAR Market. In the first quarter of this year, it achieved revenue of RMB 50.8 billion and a net profit attributable to shareholders of RMB 24.762 billion. For the first half of the year, revenue is forecasted to be between RMB 110 billion and RMB 120 billion, with net profit attributable to shareholders expected to range from RMB 50 billion to RMB 57 billion.

The market widely believes that, supported by the company's strong profit expectations for the first half and the valuation premium from the AI computing sector, ChangXin Technology's theoretical market capitalization after listing could potentially reach RMB 2 trillion to RMB 3 trillion.

According to the IPO prospectus, ChangXin Technology's shareholding structure is relatively dispersed overall. Gigadevice currently holds a 1.8% stake in the company. Notably, Gigadevice's Chairman Zhu Yiming also serves as the Chairman of ChangXin Technology.

From 2023 to 2025, the scale of related-party transactions between the two companies increased from RMB 764 million to RMB 1.182 billion. It is projected that related-party transaction volume will rise to approximately RMB 5.7 billion in 2026.