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Amlogic Up 272.4% on First Day of Trading on Star Board
COVID-19 and China
The Shanghai Stock Exchange reception desk. Image credit: Hao Qiuhui/EO Company

Amlogic (688099:SH), a Shanghai-based firm that designs and produces chipsets for consumer electronics, made a stellar debut on the Shanghai Stock Exchange Star Market: its stock soared 272.4% within first four hours of trading.

Amlogic became the 26th company listed in the fresh marketplace and the fifth semiconductor firm thereat. Now, it is one of the largest enterprises on the board by market capitalization and is second only to Montage Technology (688008:SH) by this indicator among its semiconductor peers. Last year the chipmaker collected operating income of CNY 2.37 billion (USD 344 million) with a net profit margin above 11%.

As consumer electronics scene in China is lately transforming into the next battlefield of the continuous war between the country's tech behemoths, local chip companies may take an opportunity to diversify their downstream client structure. Among the latest, Huawei and Xiaomi reportedly started making moves in the household IoT sphere.

Most of the other stocks traded on the Shanghai sci-tech board dropped today, resulting in a 5.34% decline in combined market capitalization of the 25 first-batch firms. Metal additive manufacturing systems producer BLT (688333:SH) and traffic control equipment developer TCT (688015:SH) lost more than 10% of their yesterday’s value.

Friendess Technology (688188:SH), another today’s debutant, saw its share price soaring 255.61%. The first day of trading in Shanghai led to a major boost in the firm’s market cap: in reached CNY 24.39 billion (USD 3.46 billion) right before the closing bell rang.

Meanwhile, Shanghai Composite and Shenzhen Composite indices surged 0.93% and 1.19% respectively today, with telecom, chips and military-related stocks leading the race.

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