Meig Smart Technology (03268) rose more than 3%, gaining 3.27% to HK$23.38 by the time of writing, with a turnover of HK$19.67 million.

The company recently released an investor relations activity record, stating that its high-computing AI modules and automotive modules are key development focuses this year. Given the rapid iteration of technology and products, these offerings maintain strong market competitiveness. Current order backlog and customer demand remain robust, providing solid support for operational performance. The company expects the proportion of high-computing AI modules within its overall business to continue increasing.

Meig Smart Technology also noted that its inventory significantly increased in the first quarter of 2026 due to strategic stockpiling of memory chips during the early stages of price increases, based on existing and forecasted orders. This inventory currently carries no risk of price depreciation and is expected to positively impact future product margins.

Guosheng Securities pointed out that the company began preemptively stockpiling memory chips in 2025, leading to a continuous quarter-on-quarter recovery in gross margin in Q1 2026. The ongoing chip stockpiling has resulted in a substantial inventory increase, which can support 2026 orders and provide a favorable cost advantage. Contract liabilities reached 270 million, up 41% quarter-on-quarter, indicating strong follow-up order demand from customers.