What does it take to become a dragon? If your name is Longsys Electronics Co. Ltd. (301308.SZ), the answer is simply being in the right place at the right time. In this case, Longsys just happens to be right in the middle of a red-hot market for memory chips and related products, which have lately become investor darlings on spiking prices as the latest group of AI concept stocks.
Memory chips are playing a pivotal role as AI looks poised to dominate the future, making stocks of related companies into hot commodities. Shares of GigaDevice (3986.HK; 603986.SH) have more than quadrupled since their IPO in January, while Montage Technology (6809.HK; 688008.SH) has nearly tripled since its debut a month later. Longsys’ Shenzhen-listed A-shares have done equally well, skyrocketing more than sixfold over the past year.
The company’s Hong Kong listing attempt follows a recent pattern that has seen many Chinese firms already listed on domestically-focused markets in Shenzhen and Shanghai making second listings in Hong Kong to target the city’s more international investor pool.