--- title: "[HK IPO Subscription] Longsys's H-share discount leaves ample room for the market, I went all in" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43695220.md" description: "Longsys is a leading domestic semiconductor storage company with full-chain capabilities in storage product R&D, controller design, and packaging/testing manufacturing. The company owns two core brands: FORESEE for industrial storage and Lexar for consumer storage. Its product portfolio covers embedded storage, SSDs, memory modules, and portable storage, serving the automotive, industrial, data center, and consumer markets. As the world's second-largest independent memory vendor, Longsys is aggressively expanding into automotive-grade and AI storage solutions. With a high proportion of overseas revenue, it stands as a representative enterprise for Chinese storage companies going global. The company began its IPO on August 31..." datetime: "2026-09-01T09:26:59.000Z" locales: - [en](https://longbridge.com/en/topics/43695220.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43695220.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43695220.md) author: "[小散老俞](https://longbridge.com/en/profiles/3011188.md)" generator: "portal-rs" --- # [HK IPO Subscription] Longsys's H-share discount leaves ample room for the market, I went all in Longsys is a leading domestic semiconductor storage enterprise with full-chain capabilities in storage product R&D, controller design, and packaging/testing manufacturing. The company owns two core brands: FORESEE for industrial storage and Lexar for consumer storage. Its product line covers embedded storage, SSDs, memory modules, and portable storage, serving the automotive, industrial, data center, and consumer markets. As the world's second-largest independent memory vendor, Longsys is aggressively expanding into automotive-grade and AI storage solutions. With a high proportion of overseas business, it stands as a representative enterprise for Chinese storage companies going global. The company began its IPO on August 31, with an offer price cap of ≤ HKD 240.6 per share, 50 shares per lot, and a minimum subscription of HKD 12,151.32. The market capitalization stands at HKD 109.652bn, with an issuance volume of 26.0778mn shares. It belongs to the semiconductor industry and includes a greenshoe option. The sponsors are Citi Global and CITIC Securities. Over the past two years, projects sponsored by Citi Global have seen a first-day gain rate of 60%, while those by CITIC Securities reached 75.4%. Overall, the sponsors' performance has been solid. There are 14 cornerstone investors, including Transsion International, Lenovo Group, Lens Technology (HK), Beijing Ingenic, Juyuan (HK), Colorful Technology, Hongxin Yu Electronics, Hong Kong Evergreen Technology, Huaxida Technology (HK), Yufeng Financial Group, CITIC Securities Asset Management, AHGO SPC, Huadeng Tech, and Wind Sabre. The cornerstones collectively subscribed for USD 151mn, accounting for 18.89% of the total issuance, indicating a relatively low cornerstone allocation. The global semiconductor storage product market size was USD 275.4bn in 2025, with independent memory vendors holding approximately 20% market share. Globally, Longsys ranks as the ninth-largest memory vendor and the second-largest independent one. In China, it is the third-largest memory vendor and the largest independent one. Revenue from 2023 to 2025 was RMB 10.125bn, RMB 17.464bn, and RMB 22.766bn, respectively, with a YoY growth of 30.36% in 2025. Net profit for the same period was -RMB 0.837bn, RMB 0.505bn, and RMB 1.498bn, showing a significant YoY increase of 196.45% in 2025, reflecting substantial growth in corporate performance. Based on the upper limit of the issue price, the market cap of HKD 109.652bn corresponds to an issuance of RMB 6.274bn, representing a 5.72% issuance ratio. With 18.89% locked by cornerstones, the free float amounts to RMB 5.089bn. Longsys was already listed on the A-share market; this listing marks a dual primary listing on the Hong Kong stock exchange. The current A-share price is RMB 369.18, which converts to approximately HKD 430.6. The HK IPO offer price cap is HKD 240.6, implying a discount of about 44.13% for H-shares compared to A-shares. Among comparable peers in the same industry, GigaDevice and Montage Technology trade at premiums rather than discounts, with GigaDevice's H-shares trading at a 3.96% premium and Montage Technology's at a 14% premium relative to their A-shares. This suggests that Longsys has left ample upside room for the market. This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering portion of 10% and no clawback mechanism. The current subscription multiple is 10.23x, indicating moderate demand. With a total of 52,156 lots, the supply is medium-sized, resulting in a relatively low win rate. **IPO Strategy:** Longsys is a top-tier domestic semiconductor storage firm, ranking third in China. Sponsored by Citi Global and CITIC Securities, whose overall track record is solid. The 14 cornerstone investors subscribed for USD 151mn, representing 18.89% of the total issuance, a relatively low cornerstone allocation.Net profit grew 196.45% YoY in 2025, signaling strong performance growth. Adopting Mechanism B, the public offering portion is 10%. Current subscription interest is moderate, with a free float of RMB 5.089bn across 52,156 lots. Supply is medium, and the win rate is low. The H-share discount to A-shares is around 44.13%, whereas peers like GigaDevice and Montage Technology trade at premiums. This indicates Longsys has provided sufficient margin for market gains. I plan to go all-in on this subscription! The views expressed herein are personal opinions only and do not constitute any investment advice. The stock market involves risks; invest with caution! $LONGSYS(09976.HK) ### Related Stocks - [301308.CN](https://longbridge.com/en/quote/301308.CN.md) - [09976.HK](https://longbridge.com/en/quote/09976.HK.md) - [688036.CN](https://longbridge.com/en/quote/688036.CN.md) - [XXX.US](https://longbridge.com/en/quote/XXX.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**