HK Stock Market Move | GigaDevice Semiconductor Inc. (03986) rose nearly 7% in the morning as the storage giant has an optimistic medium to long-term outlook, with a rapid growth in the company's Q2 performance.

GigaDevice Semiconductor Inc. (03986) rose nearly 7% in the morning session and, as of the time of writing, has increased by 6.85%, trading at HKD 515, with a transaction volume of HKD 1.177 billion. In terms of news, major memory manufacturers have a long-term optimistic outlook. SK Hynix has announced the restart of construction on its Dalian NAND flash second plant, planning to enhance the overall capacity by 50%, with production expected to commence in the first half of 2027, adding 50,000 wafers of capacity per month. At the same time, SanDisk's earnings call indicated a highly optimistic view on storage demand in the coming years, expecting a compound annual growth rate in revenue from FY 2028 to 2030 to maintain in the mid-to-high double digits, with a non-GAAP gross margin target aiming for 80%; the non-GAAP gross margin is expected to be around 80%, with a non-GAAP operating profit margin of about 75%. GigaDevice Semiconductor Inc.'s previously released semi-annual report indicated that it achieved revenue of 11.566 billion yuan in the first half of this year, a year-on-year increase of 178.67%; net profit attributable to shareholders was 6.857 billion yuan, up 1091.5% year-on-year. Focusing on the second quarter, the net profit was 5.396 billion yuan, a quarter-on-quarter increase of 269%. Zhongtai pointed out that in the major memory cycle, the price increase of niche DRAM, SLC NAND, and NOR Flash continues to exceed expectations, with the company's revenue from memory chips growing by 245% year-on-year in the first half of the year, and niche DRAM and SLC NAND experiencing rapid year-on-year growth, suggesting that the company is likely to continue to benefit substantially.