SDIC Securities International has issued a research report stating that ESWIN COMPUTING (01256) has an offer price of HK$1.48 to HK$1.59, corresponding to a total market capitalization of HK$32.5 billion to HK$35 billion, and a 2025 price-to-sales ratio of 11.4x to 12.3x. This compares with traditional DDIC manufacturers such as Novatek and Himax, whose P/S ratios range from 1.3x to 3.3x, and with domestic A-share RISC-V chip companies such as Espressif at 10.5x and Bluetrum at 10.8x.

The bank believes that the IPO valuation has already reflected the growth option of RISC-V compute chips, leaving limited upside room, and that future share price performance may depend more on the realization of new business results. Taking into account valuation, prospects, business theme, and the absence of a greenshoe option, it recommends referencing subscription heat, exercising caution with margin financing, and considering appropriate cash subscriptions. The main views of SDIC Securities International are as follows:

Company Overview

ESWIN COMPUTING is a Fabless chip and integrated software-hardware solution provider centered on its self-developed RISC-V architecture. Its main products include two categories: first, human-machine interaction and multimedia processing chips, used in home, office, and portable scenarios such as displays for televisions, monitors, notebook computers, mobile phones, and watches; second, interconnect and computing chips, mainly used in automotive, robotics, and industrial scenarios. Its customers mainly include AIoT, consumer electronics, technology companies, and distributors.

According to Frost & Sullivan data, based on 2025 revenue, the company holds a 5.7% share in China's intelligent terminal human-machine interaction chip market, ranking fourth; and a 1.2% share in the RISC-V main control chip product market, ranking fifth.

Financial Performance

From 2023 to 2025, the company's total revenue was RMB 1.8 billion, RMB 2.0 billion, and RMB 2.4 billion, respectively, with year-on-year growth of 16% in 2024 and 20% in 2025; first-quarter 2026 revenue was RMB 500 million, up 18% year-on-year.

From 2023 to 2025, the company's gross profit was RMB 270 million, RMB 360 million, and RMB 450 million, respectively, with year-on-year growth of 32% in 2024 and 27% in 2025. Gross margins during the same periods were 15%, 18%, and 19%, respectively; adjusted net losses were RMB 1.7 billion, RMB 1.4 billion, and RMB 1.2 billion, respectively.

Industry Conditions and Prospects

According to Frost & Sullivan data, the market size of China's intelligent terminal human-machine interaction chip products in 2025 was RMB 32.5 billion, up 10% year-on-year, and is expected to increase to RMB 50.9 billion by 2030, with a projected compound annual growth rate of 9% from 2025 to 2030; the market size of China's intelligent terminal multimedia processing chip products in 2025 was RMB 29 billion, up 5% year-on-year, and is expected to increase to RMB 36.4 billion by 2030, with a projected compound annual growth rate of 6% from 2025 to 2030.

Strengths and Opportunities

SDIC Securities International notes that the company has a dual business layout, with human-machine interaction chips forming a stable revenue base, self-developed RISC-V cores supporting integrated software-hardware delivery, and expansion into intelligent computing scenarios; the company possesses a full-stack self-developed RISC-V architecture and can license IP externally; at the same time, a one-time disruption in the packaging and testing supply chain has been repaired, and inventory impairment pressure on interconnect chips has been released in stages.

Fundraising and Use of Proceeds

The company is expected to raise a median net amount of HK$2.3 billion. Nine cornerstone investors have collectively subscribed HK$1.16 billion, accounting for approximately 48% to 50% of the offering shares, including Yitang Shenghai Fund, Hefei Construction Investment, and Haiyao Industrial. In terms of future fund use plans, 35% will be used for research and development iteration of human-machine interaction, multimedia processing chips, and interconnect and computing chips, 30% for software-hardware technology platform capabilities, 15% for potential strategic mergers and acquisitions, 10% for global commercial network expansion, and 10% for supplementary working capital.