SHENZHEN, China, Feb 2, 2026, 08:59 (CST) — Premarket
- Shares of Shenzhen Longsys Electronics Co., Ltd. Class A fell 6.35% to close at 336 yuan.
- The company flagged a steep rise in profit for 2025, driven by stronger memory prices and growing AI-related demand.
- Traders are eyeing whether the storage-chip rally holds at the open and keeping an ear out for the upcoming earnings report.
Shenzhen Longsys Electronics Co., Ltd. Class A shares are set to draw attention at Monday’s open. The stock last changed hands at 336 yuan, marking a 6.35% drop from the previous close, extending the rollercoaster ride for China’s memory sector. (TradingView)
The company, known locally as Jiangbolong (301308.SZ), is right in the thick of a busy trade: investors are wagering that AI spending will continue to accelerate demand for storage products, spanning consumer devices and data centres alike.
The Wind storage index tracking the sector jumped 28.71% year to date through Jan. 30. Several publicly traded storage companies have started the week with positive profit forecasts. Zhang Xiaorong, head of DeepTech Research Institute, told Times Finance that “AI computing demand has been the core driver,” citing tight supply as major manufacturers redirect capacity towards higher-end products. He also noted some A-share firms gained from inventory revaluation and price hikes. Lin Meibing, chief analyst at ICTIME, flagged a “bubble” risk amid the demand surge and cautioned that capacity expansion is slow, making short-term price volatility tough to predict. (Sina Finance)
On Jan. 29, Longsys projected net profit for 2025 to hit between 1.25 billion and 1.55 billion yuan—an increase of 150.66% to 210.82% compared to last year. Revenue is forecasted between 22.5 billion and 23.0 billion yuan. The company attributed the jump to a rebound in storage prices following a first-quarter low and stronger AI server demand. It also announced the completion of the first “tape-out” for its UFS 4.1 controller chip, a critical milestone before mass production. Meanwhile, custom edge-AI storage products have already shipped in volume to major clients. These numbers are preliminary and unaudited, with full details expected in the annual report.
The stock’s retreat heading into the weekend highlighted just how fast sentiment can shift in a crowded theme, despite a seemingly supportive fundamental outlook.
The downside risk is clear: if memory prices falter or the AI infrastructure rollout slows more than anticipated, the sector’s recent rally could reverse sharply. In such a market, profit forecasts quickly shift from being drivers of momentum to warning signs of a peak.
Traders will watch closely this week to see if the storage group steadies following last week’s volatility. They’ll also look for additional guidance from peers to confirm the bullish supply-demand narrative that drove the theme up through January.
Longsys plans to announce its next earnings on April 28, per Investing.com. Investors will be watching closely to see how much of the recent profit surge is confirmed in the audited figures — and what the company reveals about demand and pricing trends for Q1. (Investing)
