Longsys profit leaps in first nine months
Memory products maker Shenzhen Longsys Electronics Co. Ltd. (9976.HK; 301308.SZ), on Thursday said it expects to report a profit of 14 billion yuan ($2.092 billion) to 14.9 billion yuan for the first nine months of this year, representing a 19.6 to 20.9 times increase from a year earlier. Excluding nonrecurring items, its net profit is expected to reach 13.8 billion yuan to 14.8 billion yuan, up 29.8 to 30.9 times year-on-year.
The company said it expects to report revenue of 38 billion yuan to 40 billion yuan for the latest nine-month period, about 2.3 to 2.4 times the year-earlier level. Revenue for the third quarter is expected to be 13.9 billion yuan to 15.9 billion yuan, with adjusted net profit of 3.75 billion yuan to 4.75 billion yuan.
The company said memory wafer prices remained high, although price increases for DRAM and NAND flash had slowed, reducing the boost to its earnings from higher prices. UFS 4.1, mSSD and ePOP5x products achieved scaled commercial adoption among major customers, while the company’s Lexar and Zilia brands continued to grow. Longsys also expanded its edge AI partnerships to include AMD, Qualcomm and Unisoc, helping keep profitability at historically high levels.
Longsys shares opened higher on Friday in Hong Kong, closing at HK$154.1 by the midday break, up 2.66%. The stock is down about 34.7% from its IPO price of HK$236 IPO in September.
By Lee Shih Ta
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