Turnaround to Profitability! Domestic Storage Giant TWSC: Q1 Net Profit Expected to Reach 3.65 Billion Yuan, Five Times Last Year's Total | Earnings News

The storage chip upcycle, coupled with the benefits of strategic stockpiling, has driven explosive performance growth for this Shenzhen-based storage enterprise. TWSC 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 69.0877 million yuan in the same period last year. The midpoint of this single-quarter profit range is approximately 3.4 billion yuan, nearly five times the company's 2025 full-year net profit of 688 million yuan. Meanwhile, the company anticipates first-quarter operating revenue to range from 7.3 billion to 7.8 billion yuan, representing a leap of 483% to 523% from last year's 1.252 billion yuan. The company attributes this surge in performance to the sustained upward trend in the storage industry's prosperity, a significant increase in product shipments, and the profit margins realized from strategic raw material reserves during the price hike cycle. Single-Quarter Profit Crushes Full-Year Performance, Earnings Elasticity Surpasses Expectations The core highlight of TWSC's first-quarter performance forecast is the historic breakthrough in profit scale. Based on the midpoint of the forecast range, the company's single-quarter net profit is approximately 3.4 billion yuan, whereas its net profit for the entire year of 2025 was only 688 million yuan. This means that with just one quarter of earnings, the company has already far surpassed its previous full-year performance. Net Profit After Deducting Non-Recurring Gains and Losses is equally impressive, expected to be between 3.14 billion and 3.64 billion yuan, an increase of 4,289% to 4,956% from a loss of 74.9586 million yuan in the same period last year. This indicates that profit growth primarily stems from the substantial improvement of core business operations rather than one-off gains. Basic earnings per share are expected to be between 14.01 yuan and 16.23 yuan, compared to a loss of 0.31 yuan in the prior-year period. The company expects non-recurring gains and losses of approximately 10 million yuan and share-based payment expenses of about 54 million yuan in the first quarter, both of which have increased compared to the same period last year; however, their impact remains limited relative to the overall profit magnitude. Tight Supply Coupled with Stockpiling Advantage Drives Leap in Profitability In its announcement, TWSC attributed the massive profit increase for the current period to two core drivers. First, the sustained upward trend in industry prosperity. During the reporting period, supply in the storage industry was tight and storage prices continued to rise, leading to a significant improvement in the overall profitability of the sector. The company has achieved breakthroughs in market expansion by offering differentiated and customized storage solutions for fields such as data centers, consumer electronics, and industrial control, with increased product shipments driving substantial growth in operating revenue. Second, the benefits released from prior strategic stockpiling. Leveraging its sufficient strategic reserves of raw materials, the company's profitability has continuously improved during the price uptrend cycle. The price spread between low-cost inventory and high selling prices has become a major source of the profit explosion in this period.