HK Stock Market Move | BATELAB (02149) increases by over 7%, company raises approximately 1.17 Hong Kong dollars through discounted rights issue, plans to increase investment in wafer factory.

BATELAB (02149) rose by more than 7% again, as of press time, up 7.64% to Hong Kong $51.45, with a turnover of HK$11.0016 million. On the news front, BATELAB recently announced plans to issue up to 3 million new H shares at a price of HK$40 per share, a discount of approximately 10.41% to the closing price of HK$44.65 on the previous trading day. The net proceeds from the issuance are approximately HK$117 million and will be used to increase investment in upstream manufacturing resources, including but not limited to building a wafer fab and strengthening cooperation with existing wafer fabs. And other general operating funds. Zhongyin International previously pointed out that BATELAB focuses on the industrial-grade analog chip segment market, which has diverse and long-tailed demand, and relatively small competition compared to the consumer-grade analog chip market. It is estimated that BATELAB's revenue growth rate will reach 27-33% in 2025-27, and the net profit margin will be maintained at around 28%. Reiterate the "Buy" rating with a target price raised to HK$69.5.