CXMT forecasts 589–619% quarterly revenue growth, proposes share buyback
In short
China’s CXMT forecast third-quarter revenue of 114.7 billion–119.7 billion yuan, up 589–619% from a year earlier, Korean outlets reported. Its chairman also proposed a share buyback worth 1 billion–2 billion yuan.
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Chinese memory-chip maker CXMT forecast third-quarter revenue of 114.7 billion–119.7 billion yuan, an increase of 589–619% from a year earlier, Yonhap reported. The projected revenue would also be 15–20% above the second quarter. Quarterly net profit attributable to parent-company shareholders was expected to reach 53.395 billion–54.895 billion yuan, returning to profit from a year-earlier loss and rising about 1.0–3.8% from the second quarter. [ 2 ]
For the first three quarters, the company projected revenue of 265 billion–270 billion yuan, up 725–741% from 32.1 billion yuan a year earlier. Net profit for that period was forecast at 131 billion–132.5 billion yuan, compared with a loss of 5.3 billion yuan a year earlier. CXMT said demand for AI computing had grown rapidly since the second half of last year, with DRAM supply falling short of demand and prices rising sharply. [ 2 ]
The company also credited capacity construction, research and development and process upgrades with higher output per wafer and increased utilisation. Its chairman proposed using company funds or self-raised funds to repurchase 1 billion–2 billion yuan of shares. CXMT said the proposal reflected confidence in its development and was intended to protect investor interests and strengthen confidence, according to Yonhap. [ 2 ]
Newsis reported that CXMT planned to launch server DRAM using a 4F² cell structure before year-end. It cited Rosenblatt analyst Kevin Cassidy as distinguishing prototype development from reliable mass production at competitive cost. Mizuho’s Jordan Klein said the year-end launch plan could not be directly compared with Samsung’s 2028 mass-production target because CXMT had not disclosed specifications or validated yields. The reports differ on the forecast’s announcement date: Yonhap points to October 16, while Korea Economic Daily gives October 17. [ 2 , 11 , 16 ]
Why it matters
CXMT attributed its growth to rising AI computing demand, DRAM price increases and production improvements. Analysts cited by Newsis cautioned against directly equating its planned server-memory launch with competitive mass production.
Key facts
- Third-quarter revenue was forecast at 114.7 billion–119.7 billion yuan, up 589–619% year on year. [ 2 , 3 , 5 , 10 , 11 ]
- Quarterly net profit attributable to parent-company shareholders was projected at 53.395 billion–54.895 billion yuan. [ 2 , 3 ]
- The chairman proposed a 1 billion–2 billion yuan share buyback. [ 2 , 3 , 5 , 10 , 11 ]
- CXMT said rising AI computing demand had pushed up DRAM prices as supply lagged demand. [ 2 , 3 , 5 , 10 , 11 ]
Confirmed by several sources
Still unclear
- The announcement date of the earnings forecast. Yonhap’s October 17 report says it was issued the previous day; Korea Economic Daily’s October 18 report says CXMT disclosed it on October 17.