Analysis of Longsys Electronics (301308)’s Strong Performance: Investment Opportunities and Risk Assessment Amid the Memory Chip Super Cycle

This analysis is based on reports from Securities Times[1] and integrated information from multiple market channels. Longsys Electronics (301308) entered the strong stock pool on January 16, 2026, closing at RMB 353.48 with a daily gain of 13.48% and hitting an all-time high, ranking among 105 stocks that closed at all-time highs[1]. From a technical perspective, the stock has formed a clear upward trend channel, with a cumulative increase of 44.37% in the past 10 trading days[6], and capital attention has risen significantly.

The company’s full name is Shenzhen Longsys Electronics Co., Ltd., whose main business covers four product lines: embedded storage, solid-state drives, mobile storage, and memory modules[11]. It has three brand portfolios: FORESEE (industrial storage brand), Lexar (international high-end consumer storage brand), and Zilia (overseas industrial storage brand). Its products are widely used in smartphones, wearable devices, PCs, data centers, automotive electronics, IoT, security monitoring, and industrial control, among other fields[11].

According to the latest research report from Counterpoint Research, the memory chip market has entered a “super bull market” phase, with the current market strength surpassing the historical high in 2018. The report predicts that memory chip prices will surge 40% to 50% in Q1 2026, and are expected to rise another 20% in Q2[2][3]. This judgment has been unanimously recognized by multiple institutions, and the price increase cycle in the memory industry has become a market consensus.

From the perspective of supply and demand structure, the rapid development of AI technology has greatly boosted demand for high-performance memory chips, while upstream manufacturers have been relatively cautious in capacity expansion, leading to a widening supply-demand gap. Samsung Electronics and SK Hynix have planned to increase server DRAM prices by 60% to 70% in Q1 2026 compared to Q4 2025[5]. The latest forecast from JPMorgan shows that the average DRAM price will rise nearly 60% year-on-year in 2026[5], and this increase will bring significant performance flexibility to memory enterprises.

The surge in demand for AI computing power is a key factor driving the supply-demand imbalance of memory chips. Data shows that the DRAM usage of AI servers is about 6 to 8 times that of ordinary servers, and NAND Flash usage is about 3 times that of ordinary servers[4]. With the continuous growth of global demand for AI large model training and inference, high-end products such as High Bandwidth Memory (HBM) and DDR5 are in obvious short supply.

As a leading memory module enterprise, Longsys is well-positioned to benefit from the AI-driven expansion of storage demand. The company has launched four series of main control chips applied to UFS, eMMC, SD cards, and automotive-grade USB products, with cumulative deployments exceeding 100 million units by the end of Q3 2025[10], marking an important breakthrough in the company’s independent and controllable technology development.

During the past 10 trading days (January 5 to January 16), overseas institutions conducted research on 43 listed companies, and Longsys received attention from one overseas institution[6]. Professional research by overseas institutions usually focuses on targets with long-term growth potential. This attention indicates that the company has begun to enter the vision of international investors and is expected to receive more capital allocation support.

On December 29, 2025, the company reviewed and approved the “Proposal on the Proposed Acquisition of Minority Shareholder Equity in a Controlled Subsidiary”, planning to acquire the remaining 19% equity of its controlled subsidiary Zilia Eletrônicos for USD 46.08 million through its wholly-owned subsidiary Lexar Europe B.V., to further deepen its layout in the Brazilian market[7]. This acquisition will help the company integrate overseas resources and enhance its brand influence in the international market.

In addition, the company plans to raise no more than RMB 3.7 billion through private placement, which will be used for R&D and industrialization projects of high-end memory for the AI field, R&D projects of semiconductor storage main control chip series, construction projects of high-end semiconductor storage packaging and testing, and supplementary working capital[9]. The implementation of the private placement plan will provide sufficient financial support for the company’s strategic layout in the AI storage field.

The company’s Lexar brand has recently become the official global partner of the Argentina national football team, with the partnership covering the 2026 FIFA World Cup in the US, Canada, and Mexico[10]. Sports marketing helps enhance global brand awareness and provides brand endorsement for the overseas sales of the company’s consumer storage products.

Longsys is the world’s second-largest and China’s largest independent memory enterprise[9], with significant scale advantages and technical accumulation in the industry. As of December 31, 2023, the company has obtained 533 patents, including 215 invention patents and 109 overseas patents[11]. The company’s industry position enables it to gain better bargaining power in upstream chip procurement and enjoy brand premium in downstream customer development.

In 2024, the company achieved operating revenue of approximately RMB 10.196 billion, a year-on-year increase of 12.80%; the net cash flow from operating activities was RMB 693 million, a year-on-year increase of 148.96%[12]. In Q3 2025, the company achieved operating revenue of RMB 6.539 billion, a year-on-year increase of 54.6%; net profit attributable to parent company was RMB 698 million, a year-on-year surge of 1994.42%[4]. This performance surge fully reflects the significant driving effect of the memory industry’s recovery on the company’s profitability.

China’s memory demand accounts for more than 20% of the global total, but the localization rate is less than 30%[9], leaving huge room for domestic substitution. Against the current international trade environment, domestic memory enterprises are expected to receive more policy support and market opportunities. As a leading domestic memory module enterprise, Longsys will continue to benefit from the domestic substitution process.

It should be objectively pointed out that Longsys’ stock price has seen a maximum cumulative increase of 329% since its low in September 2025[8], with considerable short-term gains. The cumulative increase in 30 trading days reached 207.37% (data from October 2025)[4], and the current valuation may have fully reflected the market’s optimistic expectations for the memory industry’s prosperity. Investors should be wary of the risk of short-term technical corrections.

After the market closed on January 16, 2026, the company announced that 5 shareholders, including the 4th, 5th, and 6th largest shareholders, plan to transfer a total of 12.5744 million shares through inquiry, accounting for 3.00% of the company’s total share capital[8]. A number of directors, supervisors, senior executives, and shareholders have sold their shares in the company[4], which may exert certain pressure on short-term market sentiment and stock price.

The company’s inventory value surged from RMB 3.906 billion at the end of 2022 to RMB 8.233 billion in mid-2025. As of the end of Q3 2025, the inventory scale was approximately RMB 8.517 billion, an increase of about 10% from the beginning of the year[5]. Against the backdrop of rapidly rising memory chip prices, inventory appreciation may bring positive contributions, but if the market supply and demand change significantly unfavorably, the company may face the risk of inventory impairment losses. It is worth noting that the company’s inventory growth rate is about 10% lower than that of its peers, which may affect performance flexibility during periods of supply shortage[5].

Most of the main suppliers of storage wafers are overseas enterprises[9], posing certain supply chain risks. In addition, fluctuations in storage wafer prices may affect the company’s gross profit margin. The memory industry is highly cyclical[9], and investors need to closely monitor the impact of cyclical changes on performance.

From a technical perspective, Longsys is currently in a clear upward trend. The closing price of RMB 353.48 on January 16, 2026, hit an all-time high, with an intraday gain of 13.48% showing strong bullish momentum[1]. The short-term resistance levels are referenced to the integer range of RMB 380 to 400 and historical high ranges; the short-term support levels are referenced to RMB 320 to 330 (near the 5-day moving average); the medium-term support level is referenced to the previous consolidation platform of RMB 280 to 300.

The memory chip concept sector continued to rise in the afternoon, with Longsys, as an industry leader, performing prominently. Other stocks in the same sector, such as Biwin Electronics, Jintaiyang, Yingxin Development, Baicheng Co., Ltd., Kangqiang Electronics, and GigaDevice, also performed strongly[2][3], showing obvious sector effects.

The memory price increase cycle is still ongoing, and is expected to remain at a high level throughout 2026[2][3]; demand for AI servers continues to grow, and the short supply pattern of high-end products such as HBM and DDR5 cannot be reversed quickly; policy support for domestic substitution continues, and domestic memory enterprises are expected to gain more market share; the company’s R&D investment continues to advance, and volume production of self-developed main control chips is expected[10].

Short-term gains have been excessive, requiring time to digest the valuation; shareholder sell-offs may continue to affect market sentiment; capacity expansion plans of memory original manufacturers may change the supply-demand pattern.

Time	Event
Late January 2026	Implementation of 12.5744 million share transfer via shareholder inquiry[8]
February 2026	Annual performance forecast (significant performance growth expected)
Q1 2026	Actual implementation of memory chip price increases
2026	Review progress of private placement plan[9]

Differentiated strategies are recommended for different types of investors: Trend investors can enter on pullbacks, set reasonable stop-loss levels, and exit decisively when the trend weakens; Value investors should wait for better entry opportunities as the current valuation is relatively high; Short-term traders should pay attention to short-term fluctuation risks and avoid chasing highs blindly. Regardless of the strategy adopted, investors should closely monitor memory chip price trends, the company’s private placement progress, and the 2025 annual report forecast, and seek more appropriate allocation opportunities during pullbacks.

Longsys’ current strong performance is the result of multiple factors, including the memory industry’s “super bull market” cycle, explosive demand for AI servers, and accelerated domestic substitution. As a leading domestic memory module enterprise, the company is expected to continue to benefit from the industry’s recovery due to its industry position, brand advantages, and R&D capabilities.

However, investors should also remain cautious: factors such as huge short-term stock price gains, sustained shareholder sell-off pressure, and rising inventory scale may restrict the subsequent trend. It is recommended that investors formulate reasonable investment strategies based on their own risk preferences on the premise of fully understanding the risks, and focus on key variables such as memory chip price trends, changes in the company’s fundamentals, and progress of the private placement.