[News] CXMT’s Earnings Boom Faces Test as 3Q Profit Growth Slows to 1–4% QoQ: What’s Behind the Slowdown?

What happened

Ahead of its October 31 earnings release, CXMT forecast revenue of RMB 265–270 billion for the first nine months of 2026, up more than sevenfold YoY, and at its October 19 extraordinary shareholders' meeting projected net profit attributable to shareholders of RMB 131–132.5 billion for the first nine months of 2026, a sharp reversal from a net loss of RMB 5.3 billion in the same period last year. According to Eastmoney, third-quarter net profit is expected to rise just 1–4% QoQ to RMB 53.40–54.90 billion, with Q3 revenue projected at RMB 114.69–119.69 billion, up 15.25–20.28% QoQ — a sharp slowdown from 1H26, when net profit more than doubled to RMB 52.84 billion in 2Q26. Eastmoney attributes the cooling momentum to moderating DRAM price gains, which may narrow room for further profit expansion. Per 36Kr, DDR and LPDDR ASPs climbed 61% and 24.46% YoY in 2025, driving revenue growth of 515.36% and 105.59% respectively; in 1H26, DDR and LPDDR revenue reached RMB 69.47 billion and RMB 78.19 billion respectively. Peer module maker Longsys saw net profit climb from RMB 3.86 billion in 1Q26 to RMB 6.72 billion in 2Q26, but its 3Q profit is expected at RMB 3.42–4.32 billion, a sequential decline of up to 49%. TrendForce projects more moderate contract price increases of 13–18% QoQ for conventional DRAM and 10–15% for NAND Flash in 3Q26, noting record-high memory prices are pushing PC and smartphone customers toward affordability limits. CXMT said its Hefei and Beijing fabs continue to run at high utilization with full order books; it currently operates two 12-inch DRAM fabs in Hefei and one in Beijing, each with monthly capacity of up to 100,000 wafers, is expanding its Hefei testing facility and developing new DRAM and HBM production lines in Shanghai, and its 1H26 depreciation expenses rose 27.85% YoY to RMB 14.51 billion. Whether CXMT can sustain earnings momentum hinges on its October 31 results and the trajectory of fourth-quarter DRAM prices.

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Source: TrendForce · 10/19/2026 · View original source