Leading memory module maker Longsys has witnessed another significant block of shares sold by major shareholders at a deep discount, drawing a frenzy of institutional demand. After a brief dip, the stock quickly recovered, reflecting strong market confidence in the ongoing upcycle of the memory industry.
On January 16, Longsys announced that five shareholders, including Longxi One and Longxi Two, planned to collectively sell 12.57 million shares via a block transfer, representing about 3% of total equity. By the evening of January 19, the transfer details were finalized: the preliminary price was set at RMB 212.09 per share, representing a discount of nearly 37% compared to that day’s closing price of RMB 336.25. The offering attracted 59 institutional investors to submit bids, with 54 institutions successfully allocated, resulting in full subscription of the shares offered. The transaction does not involve a change of control and has no impact on corporate governance or ongoing operations.
Impacted by the news of the discounted sale, Longsys’ share price initially fell nearly 4% at the open on January 20, but quickly stabilized and reversed the trend, rising 2.41% by the midday close to RMB 344.35 per share, maintaining a market cap of RMB 144.334 billion and demonstrating robust market support. The resilience is underpinned by the company’s explosive earnings growth and the tailwinds from an industry super‑cycle.
Since the second half of 2025, AI‑driven demand has ignited the memory chip market, pushing product demand and prices sharply higher—benefiting Longsys directly. The company’s Q3 2025 report shows that revenue for the first nine months reached RMB 16.734 billion, up 26.12% year‑over‑year, with net profit of RMB 713 million, up 27.95%. The third quarter was particularly strong, with revenue of RMB 6.539 billion, a 54.6% increase, and net profit of RMB 698 million, soaring 1,994.42% year‑over‑year—a dramatic leap in profitability.
The core driver of this performance is Longsys’ strategic inventory management—the company built up significant inventory during the memory price trough and released it as prices rose. Financial data shows the company’s inventory level continued to climb, reaching an ending book value of RMB 8.517 billion for January–September 2025, accounting for 43.67% of total assets, higher than industry peers. This low‑cost inventory became a profit catalyst during the sharp price surge in Q3 2025, though earlier in the year, Longsys recorded an RMB 194 million inventory write‑down when prices were low, temporarily weighing on earnings. This highlights how high inventory is a “double‑edged sword” in a cyclical market, potentially boosting profits but also tying up capital and pressuring turnover efficiency.
With booming earnings and favorable industry prospects, Longsys’ stock price rose nearly 260% from early September 2025 to its high on January 16, 2026. Analysts remain broadly optimistic about the memory sector: Counterpoint Research notes the global memory industry has entered a “super bull market,” with prices rising over 40% in Q4 2025 and projected to increase another 40%–50% in Q1 2026, providing strong support for Longsys’ outlook.
ICgoodFind : The full subscription of the deeply discounted share offering confirms institutional confidence in Longsys and the memory sector. Short‑term price volatility does not alter the long‑term trend, and the company is well positioned to continue benefiting from the industry super‑cycle.
