Competitiveness Analysis of Longsys FORESEE Brand Amid the Memory Chip Price Hike Cycle

Based on comprehensive data collection and analysis, the following is an in-depth research report on the competitiveness of the Longsys FORESEE brand amid the memory chip price hike cycle:

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The current memory chip market is in a

, which is one of the strongest price hike cycles in history. According to industry data, since July 2025, DRAM prices have continued to rise rapidly, with most product categories seeing increases of over 100%. DDR4 and DDR5 have increased 2-3 times in price within the year. As of early January 2026, the unit price of a 256GB DDR5 server memory module has exceeded RMB 40,000. Calculated at 100 modules per box, the total value exceeds RMB 4 million, which has surpassed the price of real estate in first-tier cities [1][2].

The

mainly include three aspects:

• Demand Side
  : The explosive growth in AI computing power demand. AI servers require 8-10 times more memory chips than regular servers, and currently consume 53% of the global monthly production capacity. Massive high-end storage demand has directly squeezed the production capacity allocation for consumer-grade memory [1][3]
• Supply Side
  : The three international storage giants, Samsung, SK Hynix, and Micron, are accelerating production capacity restructuring, concentrating resources on high-end, high-margin products such as HBM and DDR5 [1][4]
• Technology Migration
  : The capacity shift from DDR4 to DDR5 is accelerating. The three major manufacturers have clearly stopped capital investment and technological iteration for DDR4, and plan to significantly reduce the proportion of DDR4 production capacity between 2025 and 2026 [1]

: Multiple institutions predict that this price hike cycle will last until late 2026 or even 2027. The contract price of general-purpose DRAM is expected to rise 55% to 60% quarter-on-quarter in the first quarter of 2026, while the price of NAND Flash products will also increase by 33% to 38% [3].

Product Type	Price at End of 2024	Price at Early 2026	Price Increase
DDR5 16GB	$12.5	$26.3	+110%
DDR4 16GB	$28.0	$50.8	+81%
DDR4 8GB	$8.5	$14.4	+69%
NAND Flash 256GB	$8.2	$14.4	+76%
NAND Flash 128GB	$6.5	$10.6	+63%

Data Source: DRAMeXchange, Global Semiconductor Observer [1][4]

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is an industrial storage brand founded by Longsys in 2011, focusing on the B2B market. According to data from CIC Consulting, the 2023 B2B revenue of the FORESEE brand ranked among global independent memory brands, and it is the core brand of the world’s second-largest independent memory enterprise [5][6].

Overall market status of Longsys:

• The world’s second-largest independent memory vendor (excluding wafer foundries)
• China’s largest independent memory enterprise
• The largest player in the A-share memory module track
• Market capitalization has exceeded RMB 110 billion [5][6]

The FORESEE brand’s products cover

, forming a complete storage solution:

Product Category	Main Products	Application Scenarios	Revenue Share
Embedded Storage	eMMC, UFS, LPDDR	Smartphones, Wearable Devices, Automotive Electronics	~50%
Solid-State Drives	PCIe SSD, SATA SSD	Laptops, Data Centers, Servers	~22%
Mobile Storage	USB Flash Drives, Memory Cards	Consumer Electronics, Photography Equipment	~15%
Memory Modules	DDR4, DDR5	Servers, PCs, Industrial Control	~13%

Data Source: Longsys Company Announcements [5][6]

are reflected in:

1. Independent R&D Capability
   : The company has in-depth independent R&D of controller chips. As of Q3 2024, the cumulative deployment volume of related chips has exceeded 100 million units, and it has successfully taped out UFS controller chips, and reached a strategic cooperation with SanDisk [7]

2. Breakthrough in Manufacturing Capability
   : Through the acquisition of “Yuancheng Suzhou” and self-built testing production lines, the company has built an integrated R&D, packaging and testing capability. The packaging yield rate of DDR products is over 99.9%, on par with world-leading levels [7]

3. Full-Scenario Coverage
   : Products cover four grades: consumer-grade, industrial-grade, automotive-grade, and enterprise-grade, meeting diversified application scenarios such as smart terminals, IoT, industrial control, automotive electronics, and data centers [8]

The FORESEE brand has performed particularly well in the

. In the first half of 2025, the enterprise-level storage business achieved revenue of RMB 693 million, a year-on-year increase of 138.66%, and has successfully developed core customers in data centers, general servers, and cloud computing [7].

The company has the following technological advantages in the enterprise-level storage sector:

• One of the few domestic enterprises capable of designing and combining “eSSD+RDIMM” products and supplying them in large quantities
• Adapts to the high-performance storage requirements of data center scenarios
• Launched memory products such as SOCAMM2 specially designed for AI data centers
• Has the layout capability for high-end products such as PCIe Gen 5.0 [5][7]

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Longsys has achieved a

amid the memory price hike cycle:

Financial Indicator	2023	2024	Q1-Q3 2025	Q3 2025 (Single Quarter)
Operating Revenue (RMB 100 million)	99.0	174.6	150.2	65.4
Net Profit Attributable to Parent Company (RMB 100 million)	-8.83	10.5	12.8	6.98
Gross Margin (%)	10.2	19.1	22.5	25.0
Net Profit Margin (%)	-8.9	6.0	8.5	10.7

Data Source: Longsys Company Announcements, Brokerage Research Reports [5][6][7]

:

• In Q3 2025, net profit attributable to parent company reached RMB 698 million,
  surging 1994.42% year-on-year
  and increasing 133% quarter-on-quarter
• Gross margin increased from 10.2% in 2023 to 25% in Q3 2025, a rise of nearly 15 percentage points
• Contract liabilities reached a record high of RMB 313 million, with a year-on-year growth rate of 421%, indicating strong order demand [7]

In response to the memory chip price hike cycle, Longsys has adopted an

:

• The value of inventory has surged from RMB 3.906 billion at the end of 2022 to RMB 8.233 billion in mid-2025
• The book balance of raw materials reached RMB 3.133 billion, a new high
• A combined analysis of changes in contract liabilities and inventory shows that the high inventory level is mainly driven by order growth [7]

This strategy enables the company to:

• Lock in procurement costs and enjoy inventory appreciation
• Ensure stable supply to meet customer demand
• Capture price spread benefits and improve gross margin

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1. Significant Cyclical Resilience
   : As a leading memory module player, it directly benefits from the simultaneous growth in memory chip volume and price, which has been verified by Q3 2025 performance

2. Improved Brand Matrix
   : The three-brand matrix of “Lexar+FORESEE+Zilia” covers B2B+B2C+overseas markets. Among them, the Lexar brand ranked 2nd globally in B2C revenue in 2023, and the Zilia brand ranked 1st in Latin America [5]

3. Outstanding Technological Strength
   : Core technologies such as independent controller chips, SiP high-end packaging, and firmware algorithms build a moat

4. Active Capital Operations
   : The RMB 3.7 billion private placement plan has been accepted by the Shenzhen Stock Exchange, and the raised funds will be invested in core areas such as AI memory, controller chips, and high-end packaging and testing [5]

5. Improved Global Layout
   : Overseas revenue accounts for over 70%, and global production layout is realized through the Zilia factory in Brazil

1. Cyclical Volatility Risk
   : Memory wafer costs account for approximately 80% of total costs, and price fluctuations are amplified by the time difference between procurement and sales, leading to sharp fluctuations in gross margin [7]

2. Supply Chain Concentration Risk
   : Procurement from the top five suppliers accounts for over 70% of total procurement, with nearly 90% from overseas, resulting in high dependence on upstream suppliers [7]

3. Inventory Impairment Risk
   : The inventory value of RMB 8.23 billion is at an all-time high. If adverse changes occur in market supply and demand, the company will face inventory impairment losses [7]

4. Valuation Pullback Risk
   : The current PE ratio is about 80 times, which has fully reflected the upward cycle expectations, and there is short-term adjustment pressure on the stock price

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Amid the memory chip price hike cycle, the Longsys FORESEE brand has demonstrated

:

Competitiveness Dimension	Evaluation	Explanation
Brand Influence	★★★★☆	Ranks 5th globally in B2B, with technical strength recognized by the industry
Technological R&D	★★★★☆	Independent and controllable core capabilities, with SiP packaging on par with international standards
Product Coverage	★★★★★	Full-scenario product matrix, covering consumer-grade to enterprise-grade
Cyclical Resilience	★★★★★	Sufficient inventory + strong order demand, directly benefiting from price hikes
Growth Space	★★★★☆	High growth in enterprise-level storage, sustained pull from AI demand

: The company’s stock price has increased by over 200% cumulatively since September 2025, and there is a risk of technical correction in the short term. It is recommended to pay attention to the valuation digestion situation

: The memory chip price hike cycle is expected to continue until late 2026. The FORESEE brand is expected to continue benefiting from simultaneous growth in volume and price, with considerable performance resilience

: The competitiveness triangle built by the company through “independent technology R&D + independent manufacturing + model innovation”, as well as its layout in AI memory, controller chips, and high-end packaging and testing, will support it to gain greater voice in the global storage industry pattern

Storage has evolved from a basic component to a strategic resource. Longsys’ exploration is not only related to the growth of a single enterprise, but also an important practice in the process of China’s independent development in the global storage industry [7].

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[1] Southern Metropolis Daily - “Price increase far exceeds that of gold, insiders say: A box is equivalent to an apartment!” (https://www.nfnews.com/content/96qK4rjjyM.html)

[2] Huxiu - “Memory ‘super cycle’: Laptops and domestic mobile phones collectively increase prices” (https://www.huxiu.com/article/4825191.html)

[3] Aijian Securities - Industry In-Depth Report “Memory Chip Price Hike Will Continue Until 2026” (https://pdf.dfcfw.com/pdf/H3_AP202512221805753876_1.pdf)

[4] Eastmoney - “Memory Chip Market Analysis and Core Leader Sorting” (https://caifuhao.eastmoney.com/news/20251228231208042103930)

[5] Orient Securities - “Longsys: RMB 3.7 Billion Private Placement Plan Accepted by Shenzhen Stock Exchange” (https://finance.eastmoney.com/a/202601093614603490.html)

[6] Caifuhao - “The 8 Most Authentic A-Share Stocks in the Memory Chip Concept” (https://caifuhao.eastmoney.com/news/20260117110140000711520)

[7] Bowang Finance - “Through the ‘Waves’ of Stock Price: How Longsys Seizes the AI New Cycle in the Storage Industry” (https://news.qq.com/rain/a/20251219A04ATS00)

[8] Longsys Official Website - “Longsys: A Bright Star in China’s Storage Industry” (https://news.sina.cn/sx/2023-12-19/detail-imzypqsx9675946.d.html)