Dongxin Shares: Q2 net profit is expected to increase quarter-over-quarter by 262%-291%; storage business volume and price both rise, represented by SLCNAND Flash

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Mars Finance reported that Dongxin Co., Ltd. (688110.SH) announced that it expects to achieve operating revenue of RMB 1.49 billion to RMB 1.53 billion in the first half of the year, representing a year-on-year increase of 334.41% to 346.07%. Net profit attributable to shareholders of the parent company is expected to be RMB 640 million to RMB 680 million, turning a loss into a profit year-on-year. The change in performance is mainly due to the surge in AI computing power demand and the widening supply-demand gap in the niche storage market. As a result, the company’s product market prices rose significantly. The storage business represented by SLC NAND Flash achieved both volume and price growth, driving a significant increase in revenue and gross margin. Xiaocai note: the company’s Q2 net profit is expected to be RMB 502 million to RMB 542 million, and its Q1 net profit was RMB 138 million. Based on this, the company’s Q2 net profit is expected to increase quarter-on-quarter by 262%–291%. (Cailian She)
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