Longsys Electronics forecasts 600-fold profit surge in H1 2026
Synopsis
Shenzhen Longsys Electronics has forecast a staggering 62,204–74,394 per cent jump in H1 2026 net profit — from just 14.8 million yuan to as much as 11 billion yuan — as AI-fuelled demand and tight global wafer supply transform China's memory module sector.
Key Takeaways
Shenzhen Longsys Electronics forecasts H1 2026 net profit of 9.2 billion yuan to 11 billion yuan , up from 14.8 million yuan a year earlier.
Year-on-year profit growth is projected at between 62,204 per cent and 74,394 per cent , according to the company's preliminary earnings forecast.
Revenue is expected to reach 22 billion yuan to 25 billion yuan , nearly doubling from 10.2 billion yuan in H1 2025.
Longsys shares jumped 12.5 per cent in Shenzhen on Monday, July 7, 2026 , trading at 695.25 yuan around 10am .
CEAC International hit its 10 per cent daily limit and Biwin Storage Technology gained 3.7 per cent on the same day.
The company renewed wafer supply agreements with major global suppliers, citing constrained global memory wafer capacity as a key profit driver.
Shenzhen Longsys Electronics, one of China's largest memory module manufacturers, has forecast a net profit of between 9.2 billion yuan (US$1.36 billion) and 11 billion yuan for the six months ended June 30, 2026 — a year-on-year jump of between 62,204 per cent and 74,394 per cent — as a global memory-chip upcycle supercharges the mainland's downstream storage sector.
The numbers behind the forecast
According to the company's preliminary earnings disclosure released on Friday evening, net profit attributable to shareholders is expected to soar from just 14.8 million yuan in the same period a year earlier to as much as 11 billion yuan. Revenue is projected to reach between 22 billion yuan and 25 billion yuan, up from 10.2 billion yuan in H1 2025, reflecting a near-doubling of the company's top line alongside the extraordinary margin expansion.
Market reaction
Shares of Longsys surged 12.5 per cent on the Shenzhen bourse on Monday morning, trading at 695.25 yuan as of around 10am. The rally spilled over into the broader Chinese storage sector: Shenzhen-listed CEAC International hit its 10 per cent daily limit, while Shanghai-listed Biwin Storage Technology gained 3.7 per cent.
Why it matters
The company attributed the dramatic improvement to stronger downstream demand and constrained growth in global memory wafer capacity, which it said had created a favourable pricing environment across the semiconductor memory industry. Longsys also disclosed that it had renewed wafer supply agreements — including long-term contracts and memorandums of understanding — with several major global memory wafer suppliers, securing resources for future production cycles.
The competitive backdrop
The forecast reinforces a broader pattern: China's memory supply chain, spanning DRAM and NAND segments, is capturing outsized gains from a global storage rebound driven in large part by artificial intelligence workloads. Surging demand for AI applications has tightened supply and lifted pricing across the industry, benefiting downstream integrators such as Longsys alongside upstream wafer producers including ChangXin Memory Technologies and Yangtze Memory Technologies Corp. Solid-state drive and storage controller chip makers are also riding the same tailwind.
What's next
Investors and industry analysts will be watching whether Longsys can sustain these margins once the full H1 2026 results are audited and published, and whether the renewed wafer supply agreements translate into stable input costs as competition for memory capacity intensifies globally. The trajectory of AI-driven storage demand through the second half of 2026 remains the single biggest variable for the entire Chinese memory supply chain.
Point of View
However, is cyclicality: memory markets are historically volatile, and the same tight-supply dynamics that created a 62,000-per cent profit swing can reverse sharply if AI capex cools or new wafer capacity comes online faster than expected. Investors buying the sector rally should weigh the secured supply agreements against the speed at which memory downturns have historically erased paper gains.
NationPress
6 Jul 2026
Frequently Asked Questions
How much profit does Longsys Electronics expect in H1 2026?
Longsys Electronics expects net profit attributable to shareholders of between 9.2 billion yuan (US$1.36 billion) and 11 billion yuan for the six months ended June 30, 2026 . That compares with just 14.8 million yuan in the same period a year earlier, representing growth of between 62,204 per cent and 74,394 per cent .
Why did Longsys Electronics profit jump so dramatically?
The company attributed the surge to stronger downstream demand and limited growth in global memory wafer capacity, which created a favourable pricing environment. AI -driven demand for DRAM and NAND storage has tightened supply and lifted prices across the industry, directly benefiting downstream integrators like Longsys .
How did Longsys stock react to the profit forecast?
Longsys shares rose 12.5 per cent on the Shenzhen exchange on Monday morning, July 7, 2026 , trading at 695.25 yuan around 10am . The broader Chinese storage sector also rallied, with CEAC International hitting its 10 per cent daily limit and Biwin Storage Technology gaining 3.7 per cent .
What is driving the global memory chip upcycle in 2026?
Surging demand from AI applications has been the primary catalyst, tightening supply of both DRAM and NAND flash memory and pushing prices higher. Constrained growth in global memory wafer capacity has amplified the effect, benefiting the entire Chinese memory supply chain from wafer producers to module makers.
Which other Chinese memory stocks benefited from the Longsys forecast?
CEAC International , listed in Shenzhen , hit its 10 per cent daily trading limit, while Shanghai -listed Biwin Storage Technology gained 3.7 per cent on July 7, 2026 . The moves reflect investor confidence that the memory upcycle is lifting the broader Chinese storage sector, including companies linked to ChangXin Memory Technologies and Yangtze Memory Technologies Corp .
