LONGSYS (09976) saw its share price climb more than 5% during the morning session, buoyed by fresh policy tailwinds aimed at advancing high-performance storage technology. At the time of writing, the stock was trading 5.46% higher at HK$189.30, with turnover reaching HK$22.69 million.
In a recent development, China's Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the 15th Five-Year Plan for the Development of the Electronic Information Manufacturing Industry. The plan emphasizes accelerating the growth of advanced storage capacity, promoting a computing model where storage enhances and substitutes for computation, and elevating the technical capabilities of distributed and hyper-converged storage systems. It also calls for refining tiered data storage architectures and protocols, as well as breaking through innovations in intelligent tiered storage, data sparsity optimization, and key-value caching.
Additionally, the blueprint encourages the research and production of next-generation memory products, including high-bandwidth flash memory, high-bandwidth memory, ferroelectric RAM, resistive RAM, and magnetoelectric RAM. These initiatives are designed to strengthen the foundation of China's data infrastructure and bolster its competitiveness in cutting-edge storage solutions.
Market analysts at Huatai Securities highlight that LONGSYS stands as China's leading memory module manufacturer, well-positioned to capitalize on the AI-driven upcycle in storage demand. The company's strategic focus on enterprise-grade products and its early international expansion offer greater growth elasticity. Furthermore, its ongoing investment in self-developed controller chips and the deepening of its TCM/PTM business models are expected to cement its competitive edge.
Given that second-quarter memory price increases have surpassed earlier expectations and market sentiment remains robust, Huatai has revised upward its revenue forecasts for the company over the next three years, while maintaining a "Buy" rating on the stock.