Turn losses into gains! Domestic storage giant DML: Q1 net profit expected to reach up to 3.65 billion yuan, five times last year's total | Financial Report Highlights

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The boom cycle of storage chips combined with the dividend of strategic stocking has driven explosive growth in the performance of this Shenzhen-based storage company.

Demingli released its first-quarter 2026 performance forecast on Monday, expecting net profit attributable to shareholders of the listed company to be between 3.15 billion and 3.65 billion yuan, compared to a loss of 69.09 million yuan in the same period last year. The midpoint of this single-quarter profit range is about 3.4 billion yuan, nearly five times the company’s full-year net profit of 688 million yuan for 2025.

Meanwhile, the company expects first-quarter revenue to be between 7.3 billion and 7.8 billion yuan, an increase of 483% to 523% over last year’s 1.252 billion yuan, achieving a significant leap. The company attributes this surge in performance to the continued upward trend of the storage industry, significant growth in product shipments, and the profit benefits released from previous strategic reserves of raw materials during the price increase cycle.

Single Quarter Profit Crushes Full Year, Performance Elasticity Exceeds Expectations

The core highlight of Demingli’s first-quarter performance forecast is the historic breakthrough in profit size. Based on the mid-range forecast, the company’s net profit for the quarter is about 3.4 billion yuan, while its full-year net profit for 2025 is only 688 million yuan, meaning that earnings from just one quarter have far surpassed the previous year’s total.

Net profit excluding non-recurring gains and losses is also impressive, estimated between 3.14 billion and 3.64 billion yuan, up 4289% to 4956% from a loss of 74.96 million yuan in the same period last year, indicating that profit growth mainly stems from substantial improvement in core business rather than one-off gains. Basic earnings per share are expected to be 14.01 yuan to 16.23 yuan, compared to a loss of 0.31 yuan in the same period last year.

The company expects non-recurring gains and losses for the first quarter to be about 10 million yuan, and share payment expenses about 54 million yuan, both higher than last year, but the amounts are limited relative to the overall profit scale.

Supply Tightness Combined with Stocking Advantage Drives Profitability Leap

Demingli attributes the significant improvement in profits this period to two core drivers.

First, the industry is experiencing continued improvement. During the reporting period, storage supply was tight, prices kept rising, and the overall profit environment improved significantly. The company launched differentiated and customized storage solutions for data centers, consumer electronics, and industrial control, achieving continuous marketing breakthroughs and increased product shipments, driving substantial growth in revenue.

Second, the release of strategic reserves. Leveraging sufficient strategic reserves of raw materials from earlier periods, the company’s profitability continued to improve during the price increase cycle, and the price spread between low-cost inventory and high selling prices became a key source of explosive profit this period.

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