NOVOSENSE Shares Surge Over 7% Amid Reports of Analog Chip Giant's Price Hike, Signaling Potential Profit Growth for Sector

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NOVOSENSE (02676) rose more than 7%, with the stock up 7.22% to HK$138.1 at the time of writing, generating a turnover of HK$26.638 million. Industry sources reported that Texas Instruments (TI) will increase prices for certain semiconductor products effective April 1. The adjustment is expected to impact some of TI's analog and embedded product lines, with distributors indicating price increases could range from 15% to 85%. Analysts at Southwest Securities noted that successive price hikes by major overseas analog chip manufacturers mark the end of a two-and-a-half-year price war, potentially ushering in a period of profit expansion for analog chip companies. Additionally, NOVOSENSE recently disclosed full-year operating revenue of approximately RMB 3.368 billion, representing a year-on-year increase of 71.80%. The net loss attributable to shareholders narrowed by 40.2% to about RMB 241 million. Revenue growth was driven by recovering downstream demand, volume shipments of new products, and the consolidation of MEMSIC's financials. On the expense side, the company's enhanced lean management and organizational efficiency efforts reduced overall expenses as a percentage of revenue, contributing to improved profitability.

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