Enflame tripled on debut to 187 times the revenue it mostly bills to Tencent

Price the company on what it sold last year and the number is 187 times revenue: roughly 185 billion yuan of market value ^[6] over 990.2 million yuan of 2025 sales ^[9], which is where the division lands ^[1]. At the 142.18 yuan offer price ^[2] the same sum gave about 62 times ^[2].

Take out the related party and the arithmetic gets harder to hold. Sales linked to Tencent were 83.79% of 2025 revenue ^[8], which leaves about 161 million yuan from every other customer ^[3], and 185 billion against 161 million is roughly 1,150 times ^[4]. Tencent holds 17.95% after the offering and was the largest customer before the listing ^[7]. That stake is worth about 33 billion yuan at Friday's price ^[12].

The float is the other half of the price. Enflame sold 43.04 million new shares, a tenth of enlarged capital ^[4], so nine tenths of the register did not trade on Friday ^[5]. That tenth raised 6.12 billion yuan ^[1]; at 430 yuan the same shares would have raised 18.5 billion, a gap of about 12.4 billion yuan ^[6]. Most of the money raised goes to fifth- and sixth-generation AI chips, related software and large scale computing systems ^[12].

"Currently, subscription for new shares in the A-share market is one of the few investment approaches that can bring definite returns to investors," said Shen Meng, director at the Beijing boutique investment bank Chanson & Co ^[13]. He said GPU-related businesses offered clearer growth prospects than concept stocks with weaker fundamentals, and that U.S. restrictions on Chinese access to advanced chips have increased interest in domestic alternatives ^[14].

The guidance is what a buyer at 430 is underwriting. Enflame forecasts 2.3 billion to 3 billion yuan of revenue for the first nine months of 2026 and a net loss of 700 million to 860 million ^[10]. Midpoints annualised give 3.53 billion yuan ^[7]. Against 185 billion that is 52 times sales ^[8]. The loss per yuan of revenue falls from 1.17 in 2025 ^[9] to 0.29 across those nine months ^[10], and the company says it expects to break even or become profitable in 2026 or 2027 depending on revenue growth and margins ^[11].

My read is that the 430 yuan price comes from a 10% float and a subscription regime Shen describes as one of the few sources of definite returns ^[13], while the operating case under it runs through the company's own largest shareholder ^[7]. The other reading is respectable, or rather the more interesting version of it is: if the nine-month numbers land near the top of guidance ^[10] and the customer list widens, 52 times sales ^[8] for a designer with Beijing's import-substitution push behind it ^[16] is a price an equity investor can argue for, and one of the four little GPU dragons alongside Moore Threads, MetaX and Biren ^[15] absorbs the demand export controls redirected ^[14]. What settles it is the revenue mix. Outside Tencent, Enflame sold 161 million yuan last year ^[3].