News Reporter | Song Jianan
On August 18, Frequency Precision Laser officially landed on the STAR Market of the Shanghai Stock Exchange with the stock code 688826. Its IPO price of 186.88 yuan per share made it the most expensive new stock offering on the A-share market in 2026, with investors needing to pay a total of 93,440 yuan for a single lot of 500 shares.
The stock opened directly at 1,100 yuan, surging 488.61% from its IPO price. During intraday trading, the share price continued to climb, peaking at 1,300 yuan, representing a maximum gain of nearly 596%. Based on the opening price, the profit per lot reached 456,600 yuan; based on the intraday high, winning investors saw paper gains of 556,600 yuan per lot — setting a new record for first-day paper profits since the full implementation of the registration system on the A-share market.
As of the time of writing, Frequency Precision Laser’s share price had pulled back to 1,125.66 yuan, still up 502.34%, with a market capitalization of 45.026 billion yuan. The turnover rate reached 76.99%, with trading volume hitting 6.909 billion yuan. Alongside this high premium, the trailing twelve-month P/E ratio has climbed to 270.5 times, far exceeding the IPO-stage P/E ratio of 49.42 times.
According to the shareholder structure disclosed in the prospectus, the company has a highly concentrated ownership. Founder Zhang Lei directly holds 54.71% of shares and indirectly controls 7.33% of voting rights through the employee stock ownership platform Shanghai Guangtuan, bringing his total voting rights to 62.04%. Even after the dilution from the IPO, he maintains absolute controlling power.
Among the top five shareholders, several core R&D PhDs are included, along with state-owned and industrial venture capital institutions such as SDIC Venture Capital and Huiguang Rixin Equity Investment. The shareholder base spans three categories — founding team, technical backbone, and national-level industrial capital — with an equity design that balances technical team incentives with industrial resource integration.
According to the issuance results announcement disclosed by the Shanghai Stock Exchange, the final strategic placement for Frequency Precision Laser was 1.8865 million shares, accounting for 18.86% of the total public offering, with a combined placement amount of 353 million yuan.
The strategic placement is divided into three major categories. The first is the sponsor’s subsidiary, CSC Financial Investment, which received 321,100 shares with a 24-month lock-up period. The second is the “Win-Win No. 95” special asset management plan for executives and core employees, in which 23 executives and core technical personnel participated, contributing a total of over 102 million yuan — the highest allocation among all strategic investors, with a lock-up period as long as 36 months. In addition, Chairman Zhang Lei personally invested 40 million yuan to participate in the subscription. The third category includes industrial chain companies such as BOE Venture Capital, AMEC, Biwin Storage, and Lead Intelligent Equipment, with industrial strategic investors subject to a 12-month lock-up period.
After the sharp rise in share price on the first day of trading, ordinary investors who won the online lottery, strategic placement institutions, original founding shareholders, and early venture capital institutions all saw significant appreciation in their paper assets. However, strategic placement shares are subject to lock-up periods, meaning the short-term paper gains are merely book profits and can only be realized after the lock-up period expires.
The enthusiastic market response to Frequency Precision Laser is primarily attributed to the precision laser sector in which it operates. This field has long been monopolized by overseas manufacturers, with very few domestic companies capable of large-scale supply.
Founded in 2017, Frequency Precision Laser emerged from the technical team of the Shanghai Institute of Optics and Fine Mechanics at the Chinese Academy of Sciences, with actual controller Zhang Lei holding a Ph.D. from the CAS. From the very beginning, the company targeted the high-end precision laser market for narrow linewidth and low noise, deliberately avoiding the fiercely competitive ordinary industrial laser market in China. After years of technical refinement, the company developed a proprietary technology path distinct from overseas giants, achieving independent production of laser products across an ultra-wide wavelength range of 177nm to 5,000nm, filling part of the domestic gap in high-end scientific research light sources.
In terms of product structure, the company primarily offers seed lasers, laser amplifiers, and frequency-converted lasers — a series of precision laser products mainly applied to two core tracks: quantum technology and semiconductor inspection and processing.
In the quantum technology field, it is one of the few domestic companies capable of mass-producing quantum lasers. Its products are supplied to the Chinese Academy of Sciences, Tsinghua University, Peking University, as well as domestic quantum industry players like QuantumCTek and CIQTEK. Its products also reach overseas top-tier research institutions including Harvard University and MIT. Notably, the core light source of the “Jiuzhang” quantum computing prototype was supported by the company’s products.
According to public statistics from QY Research, Frequency Precision Laser held a 16.85% market share in China’s quantum laser market in 2024, ranking first among domestic brands, with a global market share of 9.21%, carving out a meaningful position in the global competitive landscape.
The semiconductor business serves as the company’s second growth curve, with products used in wafer manufacturing, metrology and inspection, and wafer stealth dicing. The company has entered the supply chains of multiple domestic semiconductor equipment manufacturers, with semiconductor-related business revenue achieving a compound annual growth rate exceeding 100% from 2023 to 2025 — a remarkably fast growth trajectory.
On the financial front, from 2023 to 2025, the company’s revenue grew from 148 million yuan to 418 million yuan, representing a three-year compound annual growth rate of 68.20%. Net profit attributable to parent company increased from 60.4636 million yuan to 159 million yuan. Its gross margin has remained stable between 67% and 70% for three consecutive years — nearly double the industry average. In the first half of 2026, the company expects revenue to grow 27.58% to 44.22% year-over-year, with net profit increasing 26.93% to 48.08%.
While the track Frequency Precision Laser operates in has bright prospects, multiple real-world challenges objectively exist. Shanghai Shenwan Hongyuan noted in a research report that the company faces at least three major risks. First is the risk of technology upgrading and iteration — as quantum technology and the semiconductor industry develop rapidly, if technological iterations fail to match downstream demand, competitiveness will decline. Second is the risk that R&D investment may not achieve expected results — the company’s R&D spending accounts for about 15% of revenue, and if key technologies fail to break through or products cannot be commercialized, operations will be impacted. Additionally, some components rely on imports, as certain special-specification crystals and specialty chips lack mature domestic supply. Changes in supply chains or trade policies could disrupt production and operations.
Ultimately, the capital market’s assessment of a technology company must return to sustained order flow and steadily released performance. Short-term market enthusiasm should never be equated with a company’s long-term investment value.
