Memory Chip Maker Longsys Forecasts Over 18-Fold Net Profit Growth for First Three Quarters of 2026; Operating Cash Flow Turns Positive

Longsys, a leading domestic memory module manufacturer, released its performance forecast for the first three quarters of 2026 on October 15. The company expects operating revenue to reach between 38 billion and 40 billion yuan, representing a year-on-year increase of 127.08% to 139.03%. Net profit attributable to shareholders is projected at 14 billion to 14.9 billion yuan, a surge of 1864.55% to 1990.84% compared to the same period last year. Net profit after deducting non-recurring items is estimated at 13.8 billion to 14.8 billion yuan, up 2782.36% to 2991.23%.

For the third quarter alone, Longsys anticipates revenue of 13.9 billion to 15.9 billion yuan, growing 112.76% to 145.35% year-on-year. Non-recurring adjusted net profit for Q3 is expected to be 3.753 billion to 4.753 billion yuan, an increase of 740.33% to 964.26%. Notably, the company's net operating cash flow turned positive in the third quarter, with the asset-liability ratio falling below 50%, indicating significantly improved operational health.

The announcement notes that while global memory market supply and demand remain tight, price increases for DRAM and NAND Flash have narrowed due to high base effects from previous periods, reducing the marginal contribution of price hikes to profits. The industry is shifting from a consumer-price cycle to an AI-driven technology cycle. Longsys has leveraged self-developed chips and software architectures to scale high-end products like UFS 4.1 and mSSD among major clients, expanding edge AI collaborations to include AMD and Qualcomm.