LONGSYS (09976.HK): Nine-Month Net Profit up 1,864%-1,991%

NewTimeSpace News: Shenzhen Longsys Electronics Co., Ltd. (stock code: 09976) released its earnings forecast for the first nine months of 2026 on 15 October 2026. Based on preliminary accounting under PRC accounting standards, net profit attributable to shareholders of the listed company is expected to be RMB 14.0 billion to RMB 14.9 billion, up 1,864.55% to 1,990.84% from RMB 712.63 million in the prior year period; net profit after deducting non-recurring gains and losses is expected to be RMB 13.8 billion to RMB 14.8 billion, up 2,782.36% to 2,991.23% from RMB 478.77 million. Operating revenue is expected to be RMB 38.0 billion to RMB 40.0 billion, against RMB 16.73 billion in the prior year period.

The Company said revenue and net profit grew markedly year on year in the first nine months of 2026. In the third quarter alone, operating revenue was RMB 13.9 billion to RMB 15.9 billion, up 112.76% to 145.35%, and net profit after deducting non-recurring gains and losses attributable to shareholders was RMB 3,753 million to RMB 4,753 million, up 740.33% to 964.26%.

The Company further disclosed that operating indicators improved further in the third quarter, notably achieving a major turnaround to positive net operating cash flow despite high memory wafer prices, and gearing below 50% at the end of the reporting period. It said the global memory market remained tight on supply and demand, but the higher price bases for DRAM and NAND Flash narrowed price increases, materially reducing the marginal contribution from memory price gains, and the industry was shifting from a consumer price cycle towards an AI-driven technology cycle. The Company continued to lead with self-developed chips and software architecture, with the share of large, high-end and global customers continuing to rise, keeping third-quarter profitability at historically high levels. During the reporting period, UFS 4.1, mSSD and ePOP 5x achieved scaled commercial deployment among many well-known customers, and global businesses including Lexar and Zilia AI maintained rapid growth.

The Company cautioned that the forecast is based on preliminary calculations by its finance department and has not been audited; detailed results for the first nine months of 2026 will be disclosed in the Company's 2026 third quarterly report.