NEXCHIP

Nexchip opened lower and declined throughout the session, falling approximately 3.6% on the day, primarily driven by profit-taking after its first-day surge and the news of Huaqin increasing its stake to 10%. The stock touched an intraday high of HKD 30.66 and low of HKD 30.32, closing at HKD 30.58 on volume of 262,800 shares with turnover of HKD 7.94 million. Q1 2026 revenue grew 20.06% YoY to HKD 3.30 billion, but net profit plunged 60.41% YoY to HKD 57.4 million, with net profit margin shrinking to 1.74% from Q4 2025's 5.59%, highlighting margin pressure. The stock trades 16.9% below its 52-week high of HKD 36.80 but 8.75% above the 52-week low of HKD 28.12, and sits near both the MA20 and MA60 at HKD 30.595, indicating a technical tug-of-war. While the broader Hong Kong July IPO wave and semiconductor sector attention provide a supportive backdrop, the near-term outlook remains clouded.

Nexchip's morning session on its HK IPO debut saw a surge and retreat, opening at HK$32.04 before sliding sharply to HK$30.50 by midday, down 5.57% from the IPO price of HK$32.30, hitting the intraday low of HK$30.50, just one step from the 52-week low. Q1 revenue rose 20.06% YoY to HK$3.30 billion, but net profit plunged 60.41% to HK$57.4 million, with a net margin of only 1.74%, highlighting significant earnings pressure. Despite the recent Hong Kong IPO frenzy boosting semiconductor sector attention, the debut performance was weighed by a lofty PE of 96.68x and weak fundamentals, though the stock has already fallen below both MA20 and MA60 (both at HK$31.40), suggesting short-term technical weakness.