đź’° Strong start, weak finish: Chinese module maker Fibocom raised around 360 million USD in its Hong Kong IPO. Despite strong demand, the stock fell 11.7% on its first day of trading and dropped another 8% the following day.
🏠Margins under pressure: In the first half of 2025, revenue rose 23.5% to 3.7 billion CNY, but profit increased only 4.8% to 218 million CNY. The reason: falling module prices and rising material costs.
📊 Overvalued? Despite the weak debut, the stock’s price-to-earnings ratio in Hong Kong stands at 53, well above the 38 of its Shenzhen listing. Analysts warn of overheating in the local IPO market.
đźš—Â Smart-segment leader: Fibocom ranks second globally in communication modules, right behind Shanghai-based Quectel. Its components are used in connected cars, smart home devices, and industrial systems.
🌍 Expansion without globalization: Unlike many Chinese tech firms, Fibocom will use little of its IPO funds for overseas projects. Most of the capital goes into R&D and new factories in Shenzhen.
Big Picture
Fibocom exemplifies China’s “hidden champions”: highly specialized suppliers competing globally in key technologies like IoT and vehicle connectivity while remaining under the radar. The company benefits from the boom in smart devices, but the market is maturing, margins are tightening, and competition is intensifying.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
