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CXMT turns third-quarter net profit of 54.4 billion yuan

By Reuters News

By Che Pan and Eduardo Baptista

BEIJING, Oct 30 (Reuters) - China's CXMT 688825.SS said on Friday it swung to a net profit in the third quarter as surging AI-driven demand drove prices higher for its memory chips.

ChangXin Memory Technologies reported net profit attributable to shareholders of 54.4 billion yuan ($8.17 billion) for the three months ended September 30.

Revenue for July-September reached 118.71 billion yuan ($16.7 billion), up 613.2% from a year earlier and 19.3% from the previous quarter, the company said.

CXMT, China's largest DRAM supplier by revenue, has benefited as rivals SK Hynix 000660.KS, Samsung Electronics 005930.KS and Micron Technology MU.O have increasingly prioritised higher-value products such as high-bandwidth memory, or HBM.

Sources said this week that CXMT plans to begin limited production of HBM3E chips within two months, despite manufacturing yields of only 20% to 30%, compared with around 70% at South Korea's SK Hynix.

CXMT became China's most valuable listed company in July after its shares surged by more than five times in their Shanghai debut. Its 58 billion yuan IPO was Asia's largest this year.

Its shares closed down 2.5% on Friday. The stock has fallen 32% from an August peak as investors fret about the sustainability of the AI investment boom.

($1 = 6.6552 Chinese yuan renminbi)

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