Behind the 300 times oversubscribed subscription and the 49% surge in the dark pool of Tianyu Zhixin (09903)

The oversubscription ratio is nearly 300 times, with frozen capital exceeding over a hundred billion Hong Kong dollars, and the grey market sees a significant increase in price. Why is Tianzu Zhixin (09903), a leader in domestic general-purpose GPU, favored by investors? It is understood that Tianzu Zhixin (09903) completed its IPO on January 5th, attracting a rush of investors. According to Futu data, the oversubscription ratio exceeded 300 times, with subscription amounts exceeding 100 billion Hong Kong dollars. The issue price was set at 144.6 Hong Kong dollars, with a fundraising size of approximately 3.7 billion Hong Kong dollars, and an IPO market value of 35.442 billion Hong Kong dollars. During the grey market period, the company's stock price increased significantly, with an intraday increase exceeding 49%, indicating high market investment enthusiasm. In fact, the company received positive outlooks from many institutions before its listing, with investments from major institutions such as Da Zhong Capital, Princeville Capital, Sinovation Ventures, Sequoia China, and Yuanhe Fund. This listing also attracted an anchor team consisting of 18 top-tier investors, including ZTE Corporation (Hong Kong), UBS AM Singapore, Beijing Teamsun Technology (Hong Kong), FOURTH PARADIGM, Anqing International, Huatai Fund (Hong Kong), Xinxin Holdings, and Bright Mountain Capital. This strong and diversified shareholder matrix provides solid support for the company's rapid development. Tianzu Zhixin is an innovative leader in the domestic general-purpose GPU field, with strong revenue growth. From 2022 to the first half of 2025, the company's revenue compound annual growth rate is as high as 68.8%, continuing with a high growth rate of 64.2% in the first half of 2025. This is due to two factors: strong research and development capabilities, with full-stack self-developed technology, building core competitive advantages; and outstanding commercialization capabilities, focusing on user needs and diverse application scenarios to achieve scalable delivery. On the research and development front, from 2022 to the first half of 2025, the company's research and development expenditure were 457 million, 616 million, 772.8 million, and 334 million respectively, accounting for 241.1%, 213.1%, 143.2%, and 139.2% of revenue, respectively, showing significant results. The company's Tianzhai series and Zhiwei series products have continuously shortened their iteration cycles, with the Tianzhai series introducing the third-generation Gen 3 in 2024 to enhance computing performance, compatibility, and adaptability. The Tianzhai series is the first domestically produced general-purpose GPU product for AI model training. The Zhiwei series, as the first domestically produced inference-specific general-purpose GPU product, strengthens the integer computation unit and optimizes the data path, covering the entire AI computing process from complex model development to efficient production deployment. Additionally, the company's self-developed exclusive software stack maximizes hardware performance. From the customer demand perspective, Tianzu Zhixin focuses on user needs, adopting a dual-track model of "product + solution" to meet the differentiated needs of different customer scenarios. On one hand, the company improves product yield, optimizes the supply chain, enhances scene adaptability, and improves tool chains through various means, enabling users to use domestically produced general-purpose GPU effectively and proactively. On the other hand, through deep collaboration with customers, the company designs and deploys custom solutions tailored to customer needs, improving customer satisfaction. The company's customers span multiple industries such as financial services, healthcare, transportation, manufacturing, and retail, with the customer base growing more than 8 times in the past three years. By June of 2025, the products have been deployed in over 290 customers over 900 times. Product shipments have increased from 7,800 pieces in 2022 to 16,800 pieces in 2024, and 15,700 pieces in the first half of 2025, showing a trend of doubling growth. Tianzu Zhixin has a strong industry foundation for high growth. According to Frost & Sullivan, from 2022 to 2024, the compound annual growth rate of China's AI chip market is 80.3%, estimated to reach 898.1 billion by 2029. As the market share of domestically produced general-purpose GPU continues to increase, from 8.3% in 2022 to 17.4% in 2024, and projected to exceed 50% by 2029, the company holds a leading position in the industry. In terms of revenue in 2024, Tianzu Zhixin's training and inference general-purpose GPU products both maintain a top three market share in the domestic market. The company's IPO raised a net amount of 3.479 billion Hong Kong dollars, with 80% of the funds allocated to research and development of products and solutions. This includes 50% for the research and commercialization of the company's general-purpose GPU chips and accelerator cards within the next five years, and 30% for expanding the research and development team. With the doubling of product shipments in 2025 and the pace of commercialization, it is expected that the company's market share will further increase, solidifying its leading position. In terms of valuation, Tianzu Zhixin holds long-term investment value. At present, the company's market valuation is not high, and based on industry growth rates, the company's revenue is expected to exceed billions in the next five years, with a PS ratio below 4 times. Considered alongside leading companies in various AI fields such as NVIDIA and Cerebras whose PS ratios are tens times higher, Tianzu Zhixin's valuation appears undervalued. Furthermore, in terms of ecological value, the company has self-developed hardware and software stack, creating a complete domestic ecosystem with further growth potential. As a leader in domestic general-purpose GPU, Tianzu Zhixin also has scarcity value in the Hong Kong stock market. Valuation driving factors such as the AI development wave and domestic substitution will continue to bring investment enthusiasm for the company, with its IPO just the beginning. Currently, the company's valuation is at a low level, presenting an opportunity for long-term investors to come on board.