Puyuan Stock Slips After Forecasting 1925% Jump in First-Half Profit

Puyuan Semiconductor (688766.SH) fell more than 4% on July 24 after issuing a strong first-half 2026 earnings forecast, with its market value at about 58 billion yuan, according to Jiemian News. The company said revenue for the first six months was expected to reach about 3.95 billion yuan, up about 335.65% from a year earlier, while attributable net profit was forecast at about 825 million yuan, up about 1,925.36%, and adjusted net profit at about 820 million yuan, up about 2,976.99%. Puyuan said the gains were driven by a stronger storage-chip market as global AI compute buildout lifted demand and prices, while its “storage-plus” strategy helped MCU and driver products expand into industrial control and AIoT applications. It also said the acquisition in November 2025 of a 51% stake in Zhuhai Noah Changtian Storage Technology and the consolidation of its wholly owned subsidiary Skyhigh Memory Limited added to revenue and profit in the reporting period. The company said research and development, management, and sales expenses rose by about 240 million yuan in total. Separately, Puyuan said on July 20 that its chairman and controlling shareholder Wang Nan proposed a share buyback of 30 million yuan to 50 million yuan, to be carried out through centralized bidding. The repurchased shares would be sold 12 months after the buyback result announcement and cancelled if unsold after three years. Puyuan's stock had risen more than 500% at one point this year and hit an intraday record of 909.8 yuan per share on July 1 before pulling back.