Shenzhen memory suppliers post surging profits as higher chip prices fuel heavier stockpiling
A new round of earnings from Shenzhen-listed memory companies shows how sharply the upcycle in storage pricing has lifted profits, while also exposing rising balance-sheet pressure. Delongli, Biwin Storage and Longsys each reported extraordinary year-on-year jumps in net profit, with the smallest increase still above 1,900%. The report ties that performance to strong demand for DRAM and NAND in the third quarter of 2026, even as price gains began to cool heading into October. The article also points to a split market. Bernstein data showed DRAM contract prices rose about 20% in the third quarter, while NAND pricing was more uneven after wafer spot prices surged in August and pulled back in September. Enterprise eSSD demand remained firm, but consumer demand stayed weak. Against that backdrop, Shenzhen’s so-called “storage five tigers” expanded raw-material purchases, lifted inventories and relied more heavily on borrowing. The result is a mixed picture: headline profit growth accelerated, but operating cash flow weakened at most of the companies discussed. The report argues that much of the gain reflects inventory revaluation and aggressive procurement rather than steady cash generation, leaving these firms more exposed if the current pricing cycle loses momentum.
