"I Thought Only Samsung and SK Were Thriving"... Chinese Chipmaker Forecasts 600% Revenue Surge

China's ChangXin Memory Technologies (CXMT) forecast a sharp increase in third-quarter revenue and net profit, buoyed by the AI cycle.

According to STAR Market Daily and other outlets on the 17th local time, CXMT estimated in a business forecast released the previous day that its third-quarter revenue would reach 114.7 billion to 119.7 billion yuan (approximately 22.9 trillion to 23.9 trillion won), up 589% to 619% from a year earlier.

Reuters-Yonhap

Third-quarter net profit attributable to shareholders of the parent company was forecast to rise by about 1.0% to 3.8% from the second quarter, to between 53.395 billion and 54.895 billion yuan. The company also swung to a profit from a loss in the same period a year earlier.

Accordingly, revenue for the first three quarters is expected to reach 265 billion to 270 billion yuan, up about 725% to 741% year on year. CXMT posted a net loss of 5.3 billion yuan in the first three quarters of last year. This year, it is expected to record net profit of 131 billion to 132.5 billion yuan over the same period.

CXMT said, "Since the second half of last year, demand for AI computing power has grown rapidly. As the global DRAM industry has picked up, product supply has been unable to keep pace with demand, and prices have risen sharply."

It added, "CXMT has steadily advanced capacity construction, product research and development (R&D), and process technology upgrades, further increasing output per wafer and capacity utilization. The benefits of economies of scale continue to emerge."

In addition, CXMT Chairman Zhu Yiming proposed to the company the previous day that it buy back its own shares worth 1 billion to 2 billion yuan (approximately 200 billion to 400 billion won) using its own capital or funds raised independently.

Given that this amount is larger than previous share buybacks by companies listed on the STAR Market, known as China's "Nasdaq," CXMT's announcement is seen as a signal that its management has a positive view of the company's value.

CXMT said the share buyback proposal reflects its confidence in the company's development and is intended to protect investors' interests and bolster their confidence.

This content was produced with the assistance of AI translation services.