Shanghai, Feb 1, 2026, 09:11 (CST) — Market closed
Shares of Shenzhen Longsys Electronics Co., Ltd. fell roughly 6.4% on Friday, closing at 336 yuan. The drop came after the memory products manufacturer warned of a sharp profit increase in 2025. With mainland markets closed for the weekend, investors will have to wait until Monday to see how the stock reacts. (英为财情 Investing.com)
The selloff hit amid a crowded trade. Investors had piled into storage-linked chip stocks, drawn by rising memory prices and AI-driven demand. Now, they’re trying to separate what’s cyclical from what will stick around.
According to Wind Information data cited by Times Finance, a storage index climbed 28.71% year-to-date through Jan. 30. Zhang Xiaorong, head of Deep Tech Research Institute, attributed this to the AI computing surge and a shift toward high-bandwidth memory (HBM) used in AI accelerators, tightening supply and driving prices up. Lin Meibing, chief analyst at ICTIME, noted that building new memory capacity takes “18 to 24 months” and cautioned about a possible “bubble burst” if AI spending slows. (Sina Finance)
Investors in Longsys will be zeroing in on how much of last year’s growth stemmed from pricing versus mix, new products, and execution. The stock’s next move may depend on whether the market views the forecast as validation or a sign of a late-cycle peak.
In a Jan. 29 filing with the Shenzhen Stock Exchange, the company projected its 2025 net profit to hit between 1.25 billion and 1.55 billion yuan, marking a 151% to 211% jump from the previous year. It expects revenue to range from 22.5 billion to 23.0 billion yuan. The company highlighted a rebound in storage prices and noted that rising demand for AI servers, along with upstream capacity shifting toward enterprise products, has tightened supply. It also flagged advances in controller chips, including a first tape-out of a UFS 4.1 controller and initial shipments of custom “edge AI” storage products. The estimate remains unaudited, with the company saying it has pre-communicated with auditors and will release detailed final figures in its annual report.
UFS, or Universal Flash Storage, is a fast flash standard common in phones and other gadgets. The controller chip acts like a “traffic cop,” directing reads and writes while influencing both performance and cost.
The risk lies in memory prices dropping faster than anticipated. Should supply increase or demand weaken, margins could shrink rapidly, making forecasts based on robust pricing seem overly optimistic after the fact.
Monday’s open will reveal if Friday’s decline was just profit-taking or signals a deeper pullback.
Traders will keep an eye on additional earnings previews from China’s storage companies this week, looking for clues on whether contract pricing momentum is slowing. The sector has been moving in sync, which can work for or against investors.
Eastmoney’s market calendar lists Longsys’s 2025 annual report release for April 28. Investors are focused on this update, which will include audited figures and management insights. (Eastmoney Data Center)
