Analysis of the Strong Performance of Longxun Technology (688486): Driven by Performance, Policies, and Capital

Longxun Technology (688486) is a national high-tech enterprise focusing on high-speed mixed-signal chip design. Its core products include high-definition video bridging and processing chips, high-speed signal transmission chips, etc., which are applied in fields such as head-up displays (HUD) and AR/VR micro-displays [0]. In the first three quarters of 2025, the company achieved operating revenue of RMB 389 million (YoY +16.67%) and net profit attributable to shareholders of RMB 125 million (YoY +32.47%), showing outstanding performance [0]. Recently, the company’s stock price has performed strongly: it hit a 20% daily limit on November 18 [2], with a turnover of RMB 1.136 billion and a net inflow of RMB 138 million from main funds [3], and a net inflow of RMB 127 million from main funds in the past 3 days [4]. The driving factors for its strength include:

1. Performance Growth
   : Net profit growth outpaces revenue growth, indicating improved profitability;
2. Policy Support
   : Benefiting from semiconductor domestic substitution policies, products like SERDES chips have broad growth space [0];
3. Breakthroughs in Emerging Fields
   : 11 chips have passed AEC-Q100 automotive-grade certification and are being shipped in bulk, with product lines introduced into scenarios such as in-vehicle infotainment systems [0];
4. Capital Inflows
   : Main funds continue to flow in, and institutional attention has increased (Fullgoal Emerging Industries Equity Fund increased its holdings by 2.1616 million shares to 4.4244 million shares) [0];
5. International Strategy
   : Planning to issue H-shares and list on the Hong Kong Stock Exchange, currently in the stage of contacting intermediaries [0].

• Cross-domain Synergy
  : The company’s layout in automotive, AR/VR, HPC and other fields aligns with global technological development trends, forming multiple growth points;
• Technical Barriers
  : Passing automotive-grade certification reflects the company’s technical strength, helping it establish competitive advantages in the automotive electronics field;
• Resonance Between Capital and Fundamentals
  : Better-than-expected performance combined with main fund inflows drives stock price increases, forming a virtuous cycle.

1. Market Volatility
   : The overall volatility of the semiconductor sector may affect the company’s stock price;
2. Uncertainty of H-share Issuance
   : The issuance process may be affected by factors such as market environment;
3. Intensified Competition
   : The semiconductor industry is highly competitive, requiring continuous R&D investment to maintain advantages.

1. Expansion of Automotive Market
   : The increase in automotive electronics penetration provides a broad market for the company’s products;
2. AR/VR Growth
   : The development of metaverse-related technologies drives demand for AR/VR chips;
3. Policy Dividends
   : The continuous advancement of domestic substitution policies is expected to bring more support to the company.

Longxun Technology (688486)'s strong performance stems from multiple drivers: improved fundamentals, policy support, breakthroughs in emerging fields, and capital inflows. Its technical accumulation in the high-speed mixed-signal chip field gives it competitiveness in high-growth areas such as automotive and AR/VR. However, investors need to pay attention to risks such as market volatility and industry competition, and rationally evaluate investment value.