The memory module manufacturer Shenzhen Longsys Electronics Co.,Ltd. (Shenzhen Longsys Electronics Co.,Ltd.) has delivered a stellar interim performance forecast, reflecting the robust momentum in the global semiconductor memory industry.
The company announced on Friday that it expects its net profit attributable to shareholders for the first half of 2026 to reach between 9.2 billion yuan and 11 billion yuan, representing a staggering year-on-year increase of 620% to 740%. Net profit after deducting non-recurring gains and losses is projected to be between 9 billion yuan and 10.5 billion yuan, up approximately 278% to 325% compared to the same period last year. Revenue for the first half is forecast to be in the range of 22 billion to 25 billion yuan, a significant rise from about 10.2 billion yuan in the prior-year period.
The company's second-quarter net profit is estimated to be between 5.338 billion yuan and 7.138 billion yuan. With a first-quarter net profit of 3.862 billion yuan, this indicates an expected sequential quarterly change ranging from a 38% increase to an 84% surge.
Drivers Behind the Performance Surge
The company attributes its substantial performance improvement to two main factors: the external benefits stemming from the recovery in the global memory industry's business cycle, and continuous breakthroughs in its proprietary technology within the on-device AI sector. It is important to note that these figures are preliminary and have not been audited; specific data will be disclosed in the official semi-annual report.
Industry Upturn and Secured Supply
In its announcement, Shenzhen Longsys Electronics Co.,Ltd. pointed out that during the reporting period, downstream demand continued to grow while the overall expansion of global memory wafer capacity remained limited. This improvement in the supply-demand dynamic has driven an upturn in industry sentiment, creating a favorable operating environment for the company.
Concurrently, during this reporting period, the company successfully renewed wafer supply agreements (LTAs or MOUs) with several major global memory wafer foundries, securing its upstream resource supply.
Strategic Focus on On-Device AI
On the technological front, Shenzhen Longsys Electronics Co.,Ltd. has positioned on-device AI as a core strategic direction. The company leverages its self-developed SPU master control chip and HLC software architecture as its technological foundation. It also accelerates the implementation of its R&D outcomes by utilizing its own high-end packaging and testing capacity, systematically addressing the diverse storage needs of on-device AI.
A noteworthy joint validation result disclosed in the announcement is that the company completed joint optimization with AMD. This collaboration resulted in a solution where the company's SSD storage intelligence, combined with HLC technology, supports on-device AI products with approximately a 40% reduction in DRAM usage. If this technological pathway can be scaled up, it represents a new balance point between controlling memory costs in end devices and maintaining AI performance, potentially unlocking a broader market application space.
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