Leading domestic electronic measurement instrument company lists on H-shares, drawing market attention to its growth prospects | In-depth Analysis | Research Report | Electronic Measurement Instrument Industry

$RIGOL (00537.HK)$ The company officially listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2026, becoming the first A+H listed company in China’s electronic measurement instrument industry. The offering price was set at HK$45.98 per share, raising net proceeds of approximately HK$1.041 billion. The Hong Kong public offering received 356.86 times oversubscription, while the international offering was subscribed 9.17 times, reflecting strong market recognition. As the undisputed domestic leader in electronic measurement instruments and ranked eighth globally, the company holds the No. 1 position in digital oscilloscopes domestically and No. 5 worldwide. It is the only domestic enterprise to have commercialized oscilloscopes with self-developed ASIC chips, ensuring core technologies are independently controllable. Financially, Q1 2026 revenue grew 38% year-over-year, attributable net profit surged 510% YoY, and non-GAAP net profit turned profitable from a previous loss, demonstrating significantly improved profitability. Driven by dual tailwinds of AI advancement and domestic substitution, the global electronic measurement instrument market—valued at over RMB 100 billion—offers vast room for localization. Surging AI computing power has sharply increased testing demand, and the company’s high-end oscilloscopes have already entered the supply chains of leading optical communication customers. Revenue from major optical communication clients soared 147.71% YoY in Q1 2026, establishing this segment as a key growth engine with substantial long-term upside.

Leading domestic electronic measurement instrument company lists on H-shares, drawing market attention to its growth prospects

On July 9, $RIGOL (00537.HK)$ Officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the first company in China’s electronic measurement instrument industry to achieve dual A+H listing. The global offering consisted of 24.8022 million H-shares, priced at HK$45.98 per share, raising total gross proceeds of approximately HK$1.14 billion. Subscription demand was robust, with the Hong Kong public offering receiving 356.86 times oversubscription and the international offering subscribed 9.17 times. However, the company’s H-share price faced pressure post-listing, dropping more than 37% on its debut day to an intraday low of HK$28.74 per share. As of last Friday’s close, the stock traded at HK$27.30 per share, down 40% from the issue price.

As the undisputed domestic leader in electronic measurement instruments, $RIGOL (00537.HK)$ The company possesses deep technological barriers. Based on 2025 revenue, it is China's largest electronic test and measurement instrument supplier, ranked eighth globally in the industry with a market share of 1.2%. Within its core product portfolio, digital oscilloscopes consistently rank first domestically and fifth globally, while waveform generators rank third globally. Additionally, the company is the only domestic enterprise to have commercialized self-developed ASIC-chip-based oscilloscopes, having established four chip platforms and achieved full autonomy and control over core technologies.

The company’s earnings inflection point has become clearly evident: it reported revenue of RMB 900 million in 2025, up 16.04% year-over-year; Q1 2026 revenue reached RMB 232 million, a 38.00% YoY increase, with attributable net profit of RMB 23.15 million, surging 512.01% YoY. Non-GAAP net profit turned profitable from a prior loss, demonstrating significantly improved profitability. Gross margin has remained above 55% long-term and reached 58% in Q1 2026.From a long-term growth perspective, the global electronic test and measurement instrument market exceeds RMB 60 billion, currently dominated by overseas giants, leaving ample room for domestic substitution. Coupled with the AI computing boom driving surging demand for optical modules and semiconductor testing, the company’s 13GHz high-end oscilloscopes have already entered the supply chains of leading clients such as Accelink and Eoptolink. Revenue from major optical communications customers grew 147.71% YoY in Q1 2026. Under the dual drivers of AI adoption and domestic substitution, the company has substantial long-term growth potential.

Figure 1: RIGOL Technologies (0537.HK) IPO Details

Source: Company prospectus

Prestigious cornerstone investor lineup; a domestic leader in electronic test and measurement instruments

RIGOL Technologies’ (0537.HK) Hong Kong IPO attracted seven cornerstone investors, who collectively subscribed for 10.4451 million shares—42.11% of the total offering—amounting to approximately HKD 480 million. The cornerstone group includes top-tier private equity firms, local state-owned capital, industry leaders, and mutual fund institutions. HHLR, an affiliate of Hillhouse Capital, is the largest cornerstone investor, followed closely by CITIC Private Equity Funds. The Suzhou New District state-owned investment platform provided industrial capital support, while Sungrow Power, a new energy leader, participated as a strategic industry investor. Additional participants include CitiTrust Fund and Pengnian Group. This IPO’s cornerstone investor mix reflects strong financial backing, local industrial policy support, and supply-chain synergy value. Leading private equity firms endorse the company’s technology and growth thesis, domestic state-owned capital offers industrial ecosystem support, and Sungrow’s investment validates the application value of RIGOL’s test instruments in the new energy sector—collectively underscoring broad market confidence in the company’s long-term prospects.

According to the prospectus, RIGOL Technologies (0537.HK) is a leading Chinese supplier of electronic test and measurement instruments, backed by advanced technical capabilities and a robust global footprint. Founded in 1998 and headquartered in Suzhou, RIGOL is a pioneer in China’s electronic test and measurement industry, operating under the core brand 'RIGOL' and specializing in the R&D, manufacturing, and sales of general-purpose electronic test and measurement instruments. The company listed on the STAR Market in 2022 and, with this H-share listing, has now established a dual A+H capital structure. Per Frost & Sullivan, based on 2025 revenue:The company is China’s largest electronic test and measurement instrument supplier; ranks eighth globally in the electronic test and measurement instrument market with approximately 1.2% market share; holds the No. 5 global and No. 1 domestic position in digital oscilloscopes; and ranks No. 3 globally and No. 1 in China in waveform generators. The global electronic test and measurement instrument market has long been dominated by Western and Japanese giants such as Keysight, Rohde & Schwarz (R&S), and Tektronix, with the top seven vendors—all overseas—collectively accounting for over 50% of global market share. RIGOL Technologies (0537.HK) is the only Chinese vendor in the global top ten, representing the highest standard of domestically produced electronic test and measurement instruments.

Figure 2: Cornerstone Investors in RIGOL Technologies’ (0537.HK) Hong Kong IPO

Source: Company prospectus

Steady global market growth with significant potential for domestic substitution

*The market is steadily expanding, and the electronic measurement industry is entering a golden era.

Electronic test and measurement instruments are primarily used to detect and analyze general electrical parameters such as voltage, current, and resistance. As foundational equipment supporting development across various industries, they serve a wide range of application scenarios. In recent years, the global electronic test and measurement instrument market has expanded steadily, with a compound annual growth rate (CAGR) of 4.8% from 2021 to 2025; by 2025, global market revenue is projected to reach RMB 61.3 billion. Looking ahead, the market is expected to maintain strong growth momentum, with an estimated CAGR of 4.6% from 2026 to 2030. Among sub-segments, digital oscilloscopes—driven by robust downstream demand from communications, new energy, semiconductors, and other sectors—are growing fastest, recording a CAGR of 6.3% from 2021 to 2025. The digital oscilloscope market is anticipated to sustain solid growth from 2026 to 2030, with a projected CAGR of approximately 5.4%.This market primarily comprises two core product categories: electronic measurement instruments and electronic measurement solutions. Electronic measurement instruments are hardware devices designed to measure electrical parameters and signals. These precision instruments integrate advanced technologies—including digital signal processing, microelectronics, and sophisticated software—to deliver high accuracy and superior performance, making them essential tools across numerous industries and diverse application scenarios. Electronic measurement solutions represent a higher-level integrated offering that combines instruments with specialized software, accessories, and technical support to form comprehensive systems capable of addressing complex end-to-end testing challenges in specific industrial and application contexts, thereby delivering greater value to customers.

Figure 3: Global Electronic Test and Measurement Instrument Market Size

Source: Frost & Sullivan

*Comprehensive product portfolio driving steady earnings growth

Rigol Technologies (0537.HK) offers a broad product portfolio covering mainstream categories in electronic measurement. Its flagship product, the digital oscilloscope—often referred to as the 'engineer’s eye'—spans a full range from entry-level to high-end models, with bandwidths extending up to 16 GHz. Leveraging four proprietary chip platforms—Phoenix, Centaurus, Andromeda, and Aquila—the company has achieved internationally competitive performance metrics. The launch of its 16 GHz real-time oscilloscope in April 2026 marked a significant milestone for domestically produced high-end oscilloscopes. Beyond oscilloscopes, Rigol also offers RF instruments including spectrum analyzers, vector network analyzers, and RF signal generators. In 2025, the company launched its high-end microwave RF instrument series, RSA6000, achieving a breakthrough in the premium RF segment. Its waveform generators, recognized globally for leading-edge technology, hold a top-three global market share. Additionally, Rigol provides fundamental test instruments such as programmable DC power supplies and electronic loads, along with general-purpose measurement products like multimeters and data acquisition systems. The company also delivers customized test solutions tailored to sectors including optical communications, semiconductors, automotive electronics, new energy, and quantum technology. Rigol’s self-developed ASIC chips constitute its most critical technological barrier—it is the only Chinese company to have commercialized digital oscilloscopes based on in-house ASICs. Front-end analog chips determine key oscilloscope performance, a domain long dominated by foreign giants. Since launching its first Phoenix chipset in 2017—marking a breakthrough for China in high-end oscilloscopes—the company has continuously iterated its chip technology: the Centaurus chipset in 2022 delivered 12-bit vertical resolution; the Andromeda chipset in 2023 pushed bandwidth to 13 GHz; and the Aquila chipset enabled the official release of the 16 GHz real-time oscilloscope in 2026. Through in-house chip development, Rigol has established a complete technological closed loop—from chips to instruments to industry-specific solutions—significantly reducing costs, boosting gross margins, and building a hard-to-replicate moat. Sustained, high-intensity R&D investment underpins its technological leadership: in 2025, R&D expenditure reached RMB 226 million, representing an R&D expense ratio of 25.09%. Of its 327 R&D personnel, 52.3% hold master’s or doctoral degrees.

In terms of financial performance, the company has demonstrated overall steady revenue growth, reporting revenues of RMB 776 million, RMB 801 million, and RMB 900 million in 2023, 2024, and 2025, respectively—a year-over-year increase of 15.7%, 3.2%, and 16.04%. Revenue in Q1 2026 reached RMB 232 million, with year-over-year growth accelerating to 38.00%, marking an inflection point toward rapid scale-up. Profitability has clearly turned the corner: in 2025, net profit attributable to shareholders was RMB 860.84 million, down 6.74% year-over-year due to increased R&D investment and higher market expansion expenses; adjusted net profit attributable to shareholders was approximately RMB 380 million. In Q1 2026, profitability rebounded sharply, with net profit attributable to shareholders reaching RMB 231.50 million, surging 512.01% year-over-year, and adjusted net profit attributable to shareholders turning profitable at approximately RMB 150 million, yielding a net margin of 10.0%—an 8.2 percentage point improvement year-over-year. The company’s gross margin has consistently remained above 55%, significantly outperforming domestic peers, standing at 54.9%, 55.08%, and 58.10% in 2024, 2025, and Q1 2026, respectively—an increase of 3.48 percentage points year-over-year in Q1 2026.The high gross margin primarily stems from cost advantages derived from in-house chip development and an increasing share of high-end products. As the product mix continues to optimize, gross margin is expected to remain in a high range. By the end of 2025, the company’s products and services had reached over 90 countries and regions worldwide, with overseas revenue accounting for approximately 40%, making Rigol the most internationalized electronic measurement instrument company in China. This global footprint provides ample room for long-term growth.

Figure 4: Rigol Technologies’ (0537.HK) Revenue and Net Profit Over the Past Five Years

Source: Company Financial Reports

Resonance across multiple high-growth sectors combined with premiumization upgrades continues to unleash growth momentum.

The surge in AI computing power and domestic semiconductor substitution together form the core drivers of the company's earnings growth. Training and inference for large AI models require massive volumes of high-speed optical modules, accelerating the ramp-up of 800G and 1.6T optical modules, which directly drives substantial demand growth for core testing equipment such as high-end digital oscilloscopes. Rigol Technologies (0537.HK) has successfully integrated its 13GHz high-end oscilloscope into the supply chains of leading domestic optical module manufacturers like Accelink and Eoptolink, achieving large-scale deliveries. Revenue from the company’s key optical communications customers grew by 70.45% year-over-year in 2025, and this growth accelerated further to 147.71% in Q1 2026, making it a core engine for earnings growth. Meanwhile, China’s semiconductor industry is rapidly advancing its self-reliance, with wafer fab expansions and the rise of chip design firms continuously fueling demand for test instruments. Coupled with export control risks on high-end foreign instruments, the urgency for domestic substitution is intensifying, enabling the company’s semiconductor testing business to grow rapidly.

The rapid development of the new energy and automotive electronics sectors has opened up entirely new avenues for revenue growth. Combined with continuous breakthroughs in high-end products, the company’s growth thesis is becoming increasingly robust. High-growth segments such as electric vehicles, photovoltaics, and energy storage remain highly buoyant, significantly boosting demand for power electronics testing. The company’s portfolio—including power supplies, electronic loads, and oscilloscopes—is widely used across the new energy sector, allowing it to fully benefit from these industry tailwinds. Additionally, the trends toward intelligent and electrified automotive electronics are steadily expanding testing requirements in areas such as automotive semiconductors and in-vehicle communications, creating significant opportunities for business expansion. At the same time, the company continues to push into the high-end market, having launched 13GHz and 16GHz high-end oscilloscopes along with advanced RF instruments. These offerings have notably increased average selling prices and gross margins. As the proportion of high-end products steadily rises, overall profitability continues to improve. Compared to global industry leaders, the company still has substantial room for market penetration, underpinning strong long-term growth potential.

Overall, Rigol Technologies (0537.HK) presents compelling investment value:As the undisputed domestic leader in electronic measurement instruments and the only Chinese manufacturer with in-house chip design capabilities, Rigol enjoys deep technological moats and scarcity value in both A- and H-share markets. Financially, the company expects its H1 2026 revenue to increase by 34.44% to 41.30% year-over-year, with net profit attributable to shareholders projected to surge by 113.27% to 162.84%, signaling a clear upward trajectory in profitability and strong visibility into sustained high growth for the full year. Furthermore, the company benefits from two powerful structural trends: the explosive demand for optical communications testing driven by AI infrastructure build-out, and the broad-based domestic substitution wave in semiconductors and communications. Its growth narrative is clear and well-supported. Following its Hong Kong listing, the company’s liquidity and international profile have improved, paving the way for a more mature valuation framework. Currently in an earnings acceleration phase, Rigol has vast long-term growth runway. However, investors should also be aware of associated risks, including slower-than-expected technological advancement, intensifying competition domestically and overseas, cyclical fluctuations in downstream electronics demand, foreign exchange volatility impacting financial performance, and share price volatility due to market sentiment, particularly in the early post-listing period.

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