SIGMASTAR TECH LTD

Sigmastar Technology announced on August 26 that it plans to distribute a cash dividend of 6 yuan, tax included, for every 10 shares to all shareholders, with an estimated total payout of 252 million yuan, accounting for 29.20% of net profit attributable to the parent company. In the first half of 2026, Sigmastar Technology achieved revenue of 2.658 billion yuan and net profit attributable to the parent company of 863 million yuan.

SigmaStar Technology released its 2026 interim report, showing first-half net profit attributable to the parent company surged 619.5% year on year to 863 million yuan, while operating revenue rose 89.4% to 2.66 billion yuan. In the second quarter, operating revenue climbed 125.6% year on year to 1.66 billion yuan, and net profit attributable to the parent company jumped 834.8% to 643 million yuan. The company's main businesses include the design, development and sales of edge-side AI SoCs, IoT SoCs and automotive electronics SoCs. Among them, the edge-side AI SoC business became the core growth engine, with operating revenue up about 104.19% year on year, while IoT SoC and automotive electronics SoC businesses grew about 40.52% and 77.42% respectively. The company said it will continue to increase research and development investment and maintain a quarter-on-quarter improving performance trend.

SigmaStar Technology surged by the daily limit up in early trading on July 20 after a sharp increase in its earnings forecast. The company expects net profit for the first half of 2026 to be between 820 million and 900 million yuan, representing year-on-year growth of 583.72 percent to 650.42 percent. Second-quarter net profit is projected to rise by 172.73 percent to 209.09 percent quarter-on-quarter, mainly driven by the large-scale deployment of edge-side AI applications. Meanwhile, Moonshot AI released a new generation open-source model, Kimi K3, with a parameter scale of 2.8 trillion, making it the first open-source model to surpass 2 trillion parameters and topping the Arena AI code evaluation leaderboard. This marks the first time a Chinese large model has claimed the top spot. Kimi's annual recurring revenue has exceeded 300 million US dollars, and the company's pre-money valuation for a new funding round has risen to 31.5 billion US dollars, more than six times higher than the Series C round in December 2025, with a Hong Kong listing potentially completed within six months. Institutions believe that domestic large models are driving a shift in AI applications toward subscription models, offering huge commercial value. China's AI large model market was approximately 29.4 billion yuan in 2024 and is expected to exceed 70 billion yuan by 2026. According to statistics from Securities Times Data Treasure, AI large model concept stocks have fallen by an average of 21.15 percent this year, but six stocks including Maxvision Technology have gained over 20 percent. Institutions forecast that eight concept stocks, including iSoftStone and ThunderSoft, are likely to achieve net profit growth of over 30 percent in both this year and next.

SigmaStar Technology issued an earnings forecast, expecting net profit attributable to shareholders of the listed company for the first half of 2026 to be between 820 million and 900 million yuan, representing a year-on-year increase of 583.72% to 650.42%. The company said the sharp rise in performance was mainly due to a full-scale explosion in demand for edge-side AI industries, optimization and upgrading of product structure, a higher proportion of high-value-added chip shipments, and the resilience of the supply chain system with continuously strengthened capacity assurance. Among this, net profit for the second quarter is expected to be between 600 million and 680 million yuan, up 172% to 208% quarter-on-quarter from the 220 million yuan in the first quarter.