Summary of Key Points
On August 18, 2026, Frequency-accurate Laser, a company specializing in high-end precision lasers, went public on the STAR Market with an issue price of 186.88 yuan per share, raising 1.869 billion yuan. Founded just 8 years ago, the company has avoided the general laser markets such as industrial cutting and focused on the more challenging areas of quantum computing and semiconductor testing, specifically targeting narrow-line-width precision lasers. Its technical capabilities in some aspects surpass those of international leaders. Its business strategy aligns with two major national priorities: quantum technology development and domestic substitution of semiconductors. The company has shown rapid growth and strong profitability, and post-listing, it plans to further expand production and research and development to solidify its position in the high-end laser market.
1. Choosing a “Niche” High-End Market: Avoiding the Mass Market, Focusing on Core Needs
While most laser companies engage in industrial cutting and metal marking, Frequency-accurate Laser has chosen a more specialized path from the beginning, focusing on narrow-line-width, ultra-low-noise precision lasers. What does narrow line width mean? It refers to the precision of the laser; the narrower the line width, the more stable the frequency, allowing for precise targeting like with a sniper rifle. These lasers are essential components for quantum computing equipment, semiconductor wafer testing, and cutting-edge scientific instruments, representing a critical need in the supply chain (without them, higher-end devices cannot function properly). This market is less competitive and has higher added value due to its high technical barriers.
2. Strong Technical Foundation: From Following to Leading
Frequency-accurate Laser boasts a solid technical foundation:
- Founder’s Background: The team is led by a doctor from the Shanghai Institute of Optics and Mechanics, Chinese Academy of Sciences, ensuring expertise in the field.
- Technical Approach: The company has developed its own complete technology stack, including seed sources, fiber amplification, and frequency stabilization, capable of producing precision lasers across the entire spectrum from 177nm (deep ultraviolet) to 5000nm (infrared), covering all high-end applications.
- Clear Advantages: Compared to traditional foreign lasers, its products are resistant to vibration, portable (no need for laboratory setup), and maintain stable frequency. Some key performance indicators even surpass those of international leaders.
- Patent Protection: As of the end of 2025, the company holds 88 invention patents and 23 utility models, covering eight major fields, enabling it to be self-sufficient in technology without relying on others.
3. Aligned with Two Major National Strategies: Quantum Technology and Semiconductor Domestic Substitution
Frequency-accurate Laser’s business fits perfectly into two areas supported by the government:
1. Quantum Technology**: The company holds the highest market share in China for quantum lasers, serving top research institutions such as the Chinese Academy of Sciences, Tsinghua University, Peking University, and leading quantum companies like Guodun Quantum. It also exports to international universities like Harvard and MIT. In 2024, its global market share in quantum lasers was 9.21%, with a domestic share of 16.85%, making it the leader in this field. Its products have contributed significantly to the development of China’s quantum technology, solving critical challenges.
2. Semiconductor**: Its laser products are used in semiconductor wafer manufacturing, testing, and other critical processes, entering the supply chains of domestic equipment manufacturers like Zhongan Semiconductor and Angkun Vision. Although its domestic market share in semiconductors is only 1.98%, this represents a significant breakthrough for domestic substitution, as these components were previously dominated by foreign companies.
4. Strong Profitability: High Gross Margin and Customer Loyalty
Frequency-accurate Laser’s financial performance is impressive:
- Rapid Growth: Revenue increased from 148 million yuan in 2023 to 418 million yuan in 2025, with a compound annual growth rate of 68.2%.
- High Gross Margin: Despite investing over 14% of its revenue in research and development (higher than many tech companies), it maintains a gross margin of over 65%, indicating the high value of its products and strong pricing power.
- Customer Loyalty: Once precision lasers are installed and calibrated, customers find it costly to switch to alternative systems, providing the company with a significant competitive advantage.
5. Using Funds Raised from the Listing for Future Expansion and R&D
The 1.869 billion yuan raised from the listing will be used for three main purposes:
1. Expansion: To build industrialization projects for precision laser systems to meet the growing demand in quantum computing and semiconductor sectors.
2. R&D: To establish research centers in Shanghai and Wuhan to advance technology, such as developing even more advanced lasers.
3. Working Capital: To support daily operations.
As quantum computing progresses towards higher numbers of qubits and semiconductor domestic substitution accelerates, Frequency-accurate Laser has the potential to use capital markets to further expand its market share and become a significant player in the global high-end precision laser industry.
In summary, Frequency-accurate Laser is a niche, high-quality technology company that has chosen the right market segment, possesses strong technical capabilities, and aligns with national strategic priorities. Its prospects post-listing are promising. However, investment carries risks, and this analysis is merely for informational purposes only, not an investment advice.