Surging over 79%, subscriptions exceeding 3559 times: OLED chip scarcity leader Yungu Technology (03310) welcomes value reassessment.

In the second half of the era of Chinese intelligence, the display driver chip is moving from behind the scenes to the forefront on the screen - and this time, Yunyinggu Technology Co., Ltd. (referred to as "Yunyinggu Technology") is expected to seize the opportunity in the Hong Kong stock market and become the first stock of domestic OLED driver chip. On May 27, Yunyinggu Technology (03310) officially landed on the Hong Kong stock market, opening to a warm reception from investors, with the stock price soaring over 80% at one point during trading. By midday break, the stock price had risen by 79.72%, reaching 37.4 Hong Kong dollars, and the market value had exceeded 15.9 billion Hong Kong dollars. In addition to the strong rise on the first day of listing, the subscription for Yunyinggu Technology also proved to be very popular. The company globally issued 52.8592 million H shares, with 10% for public offering in Hong Kong and 90% for international offering. The issue price per share was 20.81 Hong Kong dollars, and the net proceeds from the global offering were approximately 1.019 billion Hong Kong dollars. Each trading unit was 200 shares of H shares, with the public offering in Hong Kong oversubscribed 3559.68 times, and the international offering oversubscribed 7.05 times, showing a strong vote of confidence from investors. As a benchmark enterprise focusing on OLED display driver chip design in China, Yunyinggu Technology mainly focuses on two major golden tracks: AMOLED for smartphones and Micro OLED for metaverse applications. It follows a Fabless light asset mode, focusing on self-developed full-stack solutions, providing AMOLED display driver chips for smartphones, Micro OLED display backplanes and driver chips for VR/AR metaverse devices, among other products. With technological breakthroughs, market share expansion, and deep integration with top customers, Yunyinggu Technology has already established itself as a top player in global OLED display driver chip design. Now, with the official listing on the Hong Kong Stock Exchange, the company is positioning itself as the first stock of OLED display driver chips from mainland China. Looking ahead, it may be worth delving deeper into the latest prospectus to further analyze how Yunyinggu Technology, as a core leader in the industry, holds its investment value. Seizing the golden track, building a stronghold with technological moat If the screen is the window to the digital world, then the driver chip is the key to opening that window. Yunyinggu Technology holds two keys AMOLED and Micro OLED and is ushering in a golden age of display chips. On one hand, as AMOLED becomes the main battlefield for smartphone displays, the AMOLED market is steadily expanding with an annual compound growth rate exceeding 15%. From 2020 to 2024, global sales of AMOLED display driver chips are expected to grow from about 724 million units to 1.292 billion units, with a compound annual growth rate of 15.6%. At the same time, the market share of Chinese panel manufacturers continues to rise, with the top five panel manufacturers in China expected to account for 51.3% of global AMOLED panel sales by 2024, providing unprecedented market opportunities for domestic OLED display driver chip companies. On the other hand, benefiting from the boom in the VR/AR industry, the Micro OLED market is growing rapidly and becoming one of the fastest-growing segments in the display chip field. Micro OLED uses single-crystal silicon wafers as the driving backplane, integrates pixel arrays and drive circuits directly on silicon using mature CMOS technology, and achieves single-chip integration of display screens and driver chips, making it a core display solution for AR/VR head-mounted devices. According to the prospectus data, driven by demand from downstream XR devices, global sales of Micro OLED display backplanes/drivers are expected to grow significantly, from 600,000 units in 2020 to 2.5 million units in 2024, with a compound annual growth rate of 41.1%, and are expected to reach 26.7 million units by 2029, with a compound annual growth rate of 60.6%. In the face of such considerable industry potential, Yunyinggu Technology is not only seizing the opportunity, but actively deploying its resources with a Fabless+full-stack self-developed strategy. The company is no longer satisfied with just building a technological moat, but is also extending its advantages to the industry ecosystem, moving from a position of mere "positioning" to a more comprehensive "control." The company adopts a Fabless business model, concentrating its resources on chip design, completing production and packaging through strategic cooperation with wafer foundries, OSAT companies, and display panel manufacturers, to enjoy industry growth dividends with a low-asset, high-barrier structure, while avoiding massive capital investment in wafer manufacturing. Technologically, Yunyinggu Technology also has industry-leading fully-stacked self-developed display driver technology, covering key areas such as display driver chip design, drive compensation algorithm development, and pixel compensation circuit layout. The company has introduced industry-first products such as the Real-RGB high-resolution AMOLED display driver chip and LTPO display driver chip. Building such technological barriers also requires high levels of research and development investment from Yunyinggu Technology. According to the prospectus, the company's R&D spending from 2023 to 2025 is expected to be 177 million yuan, 242 million yuan, and 266 million yuan, accounting for 24.6%, 27.2%, and 24.1% of revenue, respectively. With such forward-looking and efficient technological deployment, Yunyinggu Technology has rapidly transitioned from being the top player in mainland China to a global core player. According to a Frost & Sullivan report, based on sales volume in 2024, Yunyinggu Technology ranks third in the mainland China smart phone AMOLED display driver chip market, with a market share of 12.4%, and is also the largest supplier in the mainland China in this field. Additionally, the company is a major supplier in the field of Micro-OLED display backplanes/drivers, with a market share of 40.7% in 2024, ranking second globally. In the future, as the rate of domestic display driver chips continues to rise, Yunyinggu Technology, firmly establishing its leading position, is not only a core beneficiary of the domestic substitution wave but also a key player in the global market "breakout" for Chinese display chip enterprises. Dual-drive strategy + customer moat, entering the strategic investment harvest period Looking at the financial data, in the wave of domestic substitution and industrial upgrading in the display driver chip market, Yunyinggu Technology is charting a path to high growth and high barriers with its "dual-drive" product matrix and deep ties with top customers. From the product matrix perspective, Yunyinggu Technology has long anchored the OLED driver as its main business and has not blindly ventured into other fields, forming a hierarchical layout that is supported now and fueled for the future. Firstly, the smartphone AMOLED driver chip is the company's source of stable revenue. In 2025, this business is expected to contribute 800 million yuan in revenue, accounting for 72.6% of total revenue. According to sales volume in 2024, Yunyinggu Technology has become the third-largest player in mainland China's smartphone AMOLED display driver chip market, the largest supplier in mainland China. This cornerstone business is gradually forming a solid foundation amid the domestic substitution wave. Secondly, Micro OLED display backplanes/drivers are expected to become a second growth curve that has been underestimated by Yunyinggu Technology. The company also has an absolute advantage in the Micro OLED segment. With the full-blown consumer wave led by Apple's Vision Pro, the volume potential for Micro OLED will far exceed current figures. In addition, Yunyinggu Technology has deep ties with top customers, building high barriers to protect its interests. According to the Frost & Sullivan report, the company is the first mainland China AMOLED display driver chip design company to be certified by brand customers and the only one to accumulate sales of over ten million units to downstream brand customers. Currently, the company has successfully entered the supply chain of all major domestic AMOLED panel manufacturers. At the same time, the company has formed stable partnerships with major Micro OLED panel manufacturers as their main supplier. It is worth mentioning that gaining entry into the top supply chains for display driver chips requires strict certification and once achieved, it creates strong customer loyalty. With its cutting-edge product capabilities, Yunyinggu Technology has formed deep ties with global end brands, leading domestic panel manufacturers, and mainstream VR/AR companies, resulting in a high-quality and concentrated customer structure. This strategic synergy is expected to bring two positive effects high certainty of orders and a secure cushion for continuous volume growth. Of course, numbers speak volumes. According to the prospectus, Yunyinggu Technology's revenue is steadily growing. From 7.20 billion yuan in 2023, the company is projected to reach 11.06 billion yuan in revenue by 2025, with a compound annual growth rate of about 24% over three years, and a year-over-year growth rate of 24.1% in 2025. As shipments continue to increase, Yunyinggu Technology's scale effect is accelerating. Summary From an investment value perspective, the rarity of Yunyinggu Technology's offerings is evident: its leading position as the third largest player in mainland China's AMOLED display driver chip market and its 40.7% global market share in the Micro OLED segment, its fully-stacked self-developed technology system, and the enormous elasticity of the AR/VR incremental market. It is not just a story of catching up with "domestic substitution," but also a story of entering the golden age of display chips and defining the rules of the game on a global scale. With such a powerful rare attribute, the investment value of Yunyinggu Technology is certainly promising. While the company is still in a period of strategic losses, this loss is not a depreciation of value, but a prepayment for growth. Once the gate to profitability is opened as scale effects continue to be realized, the revaluation of Yunyinggu Technology's value is likely to far exceed expectations. Similar growth cases are not uncommon in the semiconductor industry; after years of continuous losses, Cambricon achieved a turning point towards profitability and its stock price once reached the top spot as the most valuable stock in the A-share market, a testament to this paradigm. For investors who understand the company's strategic logic, Yunyinggu Technology at this moment is not a puzzle waiting to be solved but a ticket to the golden age of display chips.