Shanghai, Jan 26, 2026, 06:55 GMT+8 — Premarket
- GigaDevice’s Shanghai-listed A shares head into Monday after easing from recent highs.
- Investors are balancing a new profit outlook update with recent insider-sale disclosures.
- The next key date for supply and auditing issues is the shareholder meeting set for Feb. 11.
GigaDevice Semiconductor Inc’s Shanghai-listed Class A shares (603986.SS) are set to attract attention Monday morning, having closed Friday down 1.4% at 297.25 yuan. Despite the dip, the stock remains roughly 39% higher year-to-date, after hitting 320.02 yuan earlier this month, according to trading data.
The retreat follows GigaDevice’s “positive profit alert” in Hong Kong, where it flagged stronger full-year results before the audited figures. The company projects 2025 net profit attributable to shareholders at roughly 1.61 billion yuan, up about 46%, with revenue climbing to around 9.203 billion yuan, an increase of about 25%. Growth is driven by AI computing demand and a more robust storage cycle.
Investors also faced insider selling news. On Jan. 24, the company revealed that deputy chairman and general manager He Wei, along with three other top executives, offloaded a total of 244,500 shares on Jan. 23. This move wrapped up a plan originally announced in November, driven by personal funding requirements. According to the filing, the four sales brought in proceeds totaling 73.29 million yuan.
The company is funneling cash into its DRAM expansion. Sponsor China International Capital Corp revealed GigaDevice intends to allocate 500 million yuan from A-share proceeds to its wholly owned subsidiary Zhuhai Hengqin Xincun Semiconductor. That unit will then boost capital in two wholly owned “grand-subsidiaries” by 30 million yuan and 50 million yuan, aimed at driving a DRAM chip R&D and industrialisation project.
A separate circular marked the next key date: shareholders will vote on Feb. 11. They’re set to approve a cap of about US$221 million for first-half 2026 purchases of DRAM-related products under foundry contracts from CXMT Group. The document also revealed a vote on naming KPMG Hong Kong as the overseas accounting firm for the 2025 financial year.
The disclosures come just weeks after GigaDevice started trading in Hong Kong under ticker 3986, pulling in HK$4.68 billion ($600 million) through its second listing. Its shares surged nearly 40% on debut, according to Reuters. CEO Zhu Yiming described the company as a “chip department store,” positioning it as a broad-based designer. Reuters also noted GigaDevice ranks as the world’s No. 2 supplier of NOR flash memory, holding an 18.5% market share. Reuters
On Monday, eyes will be on whether A shares can break back above 300 yuan and stay there, with profit forecasts still supporting the growth narrative. Insider selling, though, is putting pressure on sentiment. Volume and volatility remain elevated, and the stock is beginning to act like a crowded trade.
There’s a catch, though. The company warned the profit alert relies on preliminary numbers that haven’t been audited yet. The final tallies will appear in the audited 2025 annual report. It also flagged a boost from non-recurring items related to fair-value gains on securities investments.
That blend—operating momentum combined with investment gains—sets the stage for potential disappointment if demand weakens, memory prices slip, or those one-off gains disappear. Even minor insider sales can stoke concerns when valuations are already high.
After the open, all eyes turn to Feb. 11, when shareholders cast votes on the CXMT procurement estimate and the appointment of the overseas auditor. This governance and supply-chain milestone will probably serve as a key signal for investors gauging how bold the company’s DRAM expansion plans will be in early 2026.
