Analysis on the Rationality of Inquiry Transfer Pricing and Market Expectations for Longsys (688321)

Based on the obtained data, I will provide you with a comprehensive analysis.

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According to the announcement, five major shareholders of Longsys (Longxi No.1, Longxi No.2, Longxi No.3, Longjian Management, Longxi No.5) plan to reduce their holdings of the company’s shares by 12.5744 million shares via inquiry transfer, accounting for 3% of the total share capital, with a transfer price of

. Ultimately, 54 institutional investors intend to acquire the shares [1][2].

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Indicator	Value	Explanation
Inquiry Transfer Price	RMB 212.09 per share	Determined via market-oriented inquiry
Closing Price on Announcement Date (January 16)	RMB 353.48 per share	Hit a record high, with a daily increase of 13.48%
20-day Average Price (Reference)	Approximately RMB 303 per share	Estimated value
Discount Range	Approximately 40%	Relative to the closing price
Minimum Price Limit	70% of the 20-day average price	Complies with regulatory requirements

The lower limit of the inquiry transfer price is set at 70% of the average price of the previous 20 trading days. The pricing of RMB 212.09 per share is within the scope permitted by the rules, which is a normal discount level for inquiry transfers.

The 40% discount provides a significant margin of safety for institutional investors, which reflects:

• The transferors are willing to offer a large discount to attract high-quality institutions
• The secondary market has seen a large short-term increase, with a risk premium for pullbacks
• The transferees are required to lock up the shares for 6 months, and the liquidity discount compensation is reasonable

Based on historical data analysis [0]:

• 20-day moving average: RMB 31.09
• 50-day moving average: RMB 29.43
• 200-day moving average: RMB 28.07
• Recent lowest price: RMB 14.86
• Recent highest price: RMB 44.99

From a long-term perspective, the current stock price is in a historical high range, and the pricing of RMB 212.09 per share is relatively reasonable.

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Dimension	Analysis Result
Number of Participating Institutions	59 (54 intend to acquire ultimately)
Oversubscription Multiple	Expected to exceed 1x
Qualification for Acquisition	Limited to professional institutional investors (securities firms, funds, insurance companies, private equity firms)

The company is the largest integrated memory module manufacturer in China, benefiting from the following industry trends:

• The application of AI technology continues to drive cloud service providers’ demand for SSDs [1]
• Shortages in HDD supply have prompted cloud service providers to switch orders to SSDs
• Demand for NAND Flash has exploded, with limited incremental bit output

Financial Indicator	First Three Quarters of 2025	Year-on-Year Change
Operating Revenue	RMB 16.734 billion	+26.12%
Net Profit Attributable to Parent Company	RMB 713 million	+27.95%
Net Profit Attributable to Parent Company in Q3	RMB 698 million	Turned from loss to profit

• Breakthrough in High-end Memory
  : The company continues to make progress in high-end memory, overseas business, and self-developed main control chips
• Improvement in Profitability
  : Endogenous growth factors will continue to drive improvements in the company’s profitability
• Market Value Growth Potential
  : The current market value is approximately RMB 148.2 billion, and institutions are optimistic about its future growth potential

:

• The participation of 59 institutions in bidding indicates strong market demand
• Institutions are willing to take over at RMB 212.09 per share (a 40% discount relative to the closing price), indicating recognition of the current valuation level
• The participation of a large number of institutions despite the 6-month lock-up requirement shows confidence in long-term investment

:

• The inquiry transfer does not involve a change in the company’s control rights and will not affect the company’s governance structure
• The transferors are concerted actors of pre-IPO shareholders who have terminated their concerted action relationship, and this is a normal exit
• The controlling shareholder and actual controller have promised not to participate in this transfer

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• The pricing of RMB 212.09 per share complies with the requirements of inquiry transfer rules
• The discount level is within a reasonable range, providing a margin of safety for institutions
• The market-oriented inquiry mechanism ensures the fairness of the price

• The active participation of 59 institutions reflects recognition of the prosperity of the memory chip industry
• The company’s performance continues to grow, with solid fundamentals
• AI-driven growth in memory demand brings long-term growth momentum to the company
• Institutional investors have expressed confidence in the company’s future development through practical actions

: There is a large gap between the inquiry transfer price and the secondary market price, which may exert certain pressure on the stock price in the short term. However, in the long run, the active participation of institutional investors indicates recognition of the company’s value.

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[1] Eastmoney - “Hundred-billion Market Cap Memory Leader: Five Major Shareholders Plan to Transfer Shares via Inquiry” (https://wap.eastmoney.com/a/202601163622249918.html)

[2] Sina Finance - “Longsys: Shareholders Plan to Transfer 3% of Company Shares via Inquiry” (https://finance.sina.com.cn/jjxw/2026-01-16/doc-inhhnzar2541896.shtml)

[0] Jinling AI - Real-time Stock Quotes and Historical Data