Longsys Reports First Three Quarters Attributable Net Profit of 14.3 Billion Yuan, Surging Over 19-Fold Year-on-Year
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Longsys (09976) posted net profit of RMB 143.22 billion for the first three quarters, roughly 20 times the year-ago figure, as memory-chip margins amplified a revenue surge into an earnings explosion.
What are the headline numbers?
Revenue hit RMB 387.18 billion, up 131.37% year-on-year; net profit attributable to shareholders reached RMB 143.22 billion, up 1,909.68%.
Basic earnings per share came in at RMB 33.97 — nearly 34 yuan of profit for every share held.
This means → the company didn't just sell more; it earned dramatically more on every yuan of sales.
Why did profit growth so vastly outpace revenue growth?
Revenue roughly doubled, yet profit multiplied about 20 times — a huge gap.
In plain terms = memory chips are a high-leverage business: costs are relatively fixed, so when prices and volumes rise together, the extra revenue flows almost entirely into profit.
The core driver was improved gross margins in both distribution and in-house-designed memory products — higher unit prices, fatter margins.
What exactly is this "earnings leverage"?
Earnings leverage — the phenomenon where profit grows far faster than revenue — is a hallmark of the semiconductor cycle.
This means → in an upcycle, leading companies see profit elasticity far exceed revenue elasticity — the pace of earnings accelerates.
This reflects a memory industry sitting squarely in an up-cycle, with both pricing and demand running in the company's favor.
Can this growth rate last?
Whether full-year results sustain this momentum hinges on two things: Q4 memory pricing trends and demand durability.
In plain terms = if memory chips hold their prices and downstream buyers keep ordering, profits can keep climbing; if not, a pullback looms.
This means → the current numbers are striking, but investors need to watch Q4 price signals and order flows closely.
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