Shares of NOVOSENSE (02676) surged more than 5%. At the time of writing, the stock was up 4.77% to HK$197.8, with a turnover of HK$64.3543 million.

Recent Developments

The company recently disclosed the draft of its 2026 A-share restricted stock incentive plan. According to analysis from Changjiang Securities, the company is granting 465,000 restricted shares at an award price of RMB 139.87 per share to 528 incentive recipients, comprising one core technical personnel and 527 mid-level managers, key staff, and other employees. This represents approximately 0.29% of the company's total share capital.

The company-level performance assessment is based on operating revenue, with target values for 2026, 2027, and 2028 set at RMB 4.5 billion, RMB 5.5 billion, and RMB 6.8 billion, respectively. The corresponding threshold values are RMB 4.05 billion, RMB 4.95 billion, and RMB 6.12 billion. The analysis suggests that the implementation of the 2026 equity incentive plan aligns the interests of core employees, supporting expectations for sustained growth.

Business Performance Drivers

Regarding business performance, the analysis notes that for the first quarter of 2026, the company benefited from a continued recovery in its traditional downstream markets, including automotive electronics and the broader energy sector, coupled with robust growth in automotive electronics demand and notably significant growth in server power supply client demand.

Currently, the company's automotive electronics products have achieved broad coverage among mainstream automakers. The company continues to make breakthroughs in product adoption across various application areas such as body electronics, intelligent lighting, thermal management, smart cockpits, and chassis safety.

In the broader energy sector, power module growth was particularly significant during the reporting period. This is primarily attributed to strong demand growth for AI servers. The company supplies drivers, isolation chips, MCUs, and other products for the primary and secondary power supply units (PSUs) in server power systems. Furthermore, the company has achieved mass-production breakthroughs with certain products for server power supply clients both domestically and internationally.