On Thursday, two more firms began trading on the Science and Technology Innovation Board (STAR) of China, taking the total number of listed firms on STAR board to 27.
Amlogic (Shanghai) Co. is a worldwide system-on-a-chip fabless firm that offers open platform solutions for media consumer devices, including Smart TVs and products from Smart Home.
The business saw its share price open at 136 Yuan (U.S. dollars 19.4) per share on Thursday morning, surging 253 per cent from its 38.5 Yuan per share offering price.
The chip business produced income of 1.13 billion Yuan in the first half of the year, up 10.85 per cent year-on-year, but its net profit attributed to shareholders fell 18.3 per cent year-on-year, according to a report submitted to the Shanghai Stock Exchange (SSE).
The Shanghai Friendess Electronic Technology Co. is a laser-motion control systems company based in Shanghai.
The company’s share rose 216 per cent to open at 217 Yuan with the problem cost of 68.58 Yuan.
In H1, the corporation’s company income amounted to 174.76 million Yuan, up 37.75 per cent year-on-year, while shareholders ‘ net profit grew 56.07 per cent to 128.77 million Yuan, according to a declaration submitted to the SSE.
The inventory prices of seven firms listed on the STAR market exceeded 100 Yuan per share by the end of the last trading day, demonstrating favourable market expectations, the Shanghai Securities News said.
The market should also respect stock valuation; however, as the value of STAR stocks is currently slightly overvalued, said Li Daxiao, chief economist with Yingda Securities Co., Ltd. China’s STAR market began trading on the SSE on July 22, with the first batch of 25 firms debuting on the board.
The new board was first suggested in November 2018 to provide direct funding assistance to businesses in high-tech and strategic emerging industries such as new-generation information technology, sophisticated machinery, new materials, new energy, energy-saving and environmental protection.