Investment Rating - The investment rating for the company is "Buy" with a target price of 115.2 CNY, maintaining the rating for the next six months [7][18]. Core Views - The company achieved a record high revenue of 10.196 billion CNY in H1 2025, representing a year-on-year growth of 12.80%. The net profit attributable to the parent company was 14.766 million CNY, with a significant improvement in both revenue and profit in Q2 2025 [1][2]. - The growth in revenue is driven by the recovery in key downstream markets such as mobile phones and PCs, along with increased demand for servers due to AI, leading to sustained growth in the storage market [2][3]. - The company is positioned as a leader in domestic substitution, with its enterprise storage business revenue reaching 693 million CNY in H1 2025, a year-on-year increase of 138.66% [3]. - The self-developed controller chips have accelerated application deployment, with over 80 million units deployed by the end of July 2025 [4]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 10.196 billion CNY, a year-on-year increase of 12.80%. Q2 2025 revenue reached 5.939 billion CNY, a quarter-on-quarter increase of 39.53% [1][2]. - The net profit attributable to the parent company for H1 2025 was 14.766 million CNY, with a non-recurring net profit of 320.69 million CNY [1]. Business Growth - The enterprise storage business saw significant growth, with revenue of 693 million CNY in H1 2025, up 138.66% year-on-year. The company has established a comprehensive product system for enterprise-level products [3]. - The TCM business model enhances the company's supply chain integration and operational efficiency, contributing to a stronger profit margin [4]. Global Expansion - The company has strengthened its overseas market presence, with sales in Brazil and Latin America reaching 1.388 billion CNY in H1 2025, a growth of 40.01% [5]. - The global brand Lexar achieved sales of 2.145 billion CNY in H1 2025, reflecting a year-on-year growth of 31.61% [5]. Future Outlook - The company is expected to benefit from a dual logic of "cycle + growth," with projected revenues of 23.05 billion CNY, 26.05 billion CNY, and 30.09 billion CNY for 2025, 2026, and 2027 respectively [6][5]. - The net profit attributable to the parent company is forecasted to be 4.82 billion CNY, 16.09 billion CNY, and 20.76 billion CNY for the same years [6].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company achieved a record high revenue of 5.9 billion yuan in Q2 2025, with a significant increase in gross margin to 14.8%, up 4.4 percentage points from the previous quarter [7] - The company is the second largest independent storage manufacturer globally and the largest in China, with three major storage brands: FORESEE, Zilia, and Lexar [7] - The company is experiencing rapid growth in enterprise storage, with a projected revenue of 9.22 billion yuan in 2024, representing a year-on-year increase of 666.3% [7] - The company has successfully completed compatibility adaptations for its PCIe SSD and SATA SSD product lines with multiple domestic CPU platforms [7] Financial Data and Profit Forecast - Total revenue projections for the company are as follows: - 2024: 17.464 billion yuan - 2025: 20.311 billion yuan - 2026: 23.440 billion yuan - 2027: 25.025 billion yuan - The company expects a net profit of 0.615 billion yuan in 2025, with a year-on-year growth rate of 23.4% [2][8] - The gross margin is projected to be 17.0% in 2025, with a return on equity (ROE) of 8.7% [2][8] Market Data - The closing price of the company's stock is 96.73 yuan, with a market capitalization of 26.543 billion yuan [3] - The company has a price-to-earnings (P/E) ratio of 66 for 2025 [2][3] Product Development - The company has expanded its automotive-grade storage product matrix, with successful product verification and mass production of UFS2.1 and UFS3.1 products [7] - The company has shipped over 50 million SLC NAND chips and over 80 million self-developed controller chips [7]

Investment Rating - The report maintains an "Accumulate" rating for Jiangbolong (301308.SZ) [5] Core Views - The company is expected to benefit from a recovery in storage prices and a continuous increase in enterprise-level storage orders, with a significant quarter-on-quarter increase in net profit [1][2] - The embedded storage business is projected to continue its growth trajectory, while the SSD business is anticipated to benefit from the expansion of enterprise-level storage [2][3] - The global AIGC wave and the "Digital China" initiative are expected to provide new growth momentum for the storage market, positioning the company as a leading independent storage manufacturer in China [4] Financial Summary - For 2023A, the company reported revenue of 10,125 million yuan, with a year-on-year growth rate of 21.6%. The projected revenue for 2024A is 17,464 million yuan, reflecting a growth rate of 72.5% [1][15] - The net profit attributable to the parent company is expected to turn positive in 2024A, reaching 499 million yuan, with a significant year-on-year growth of 160.2% [1][15] - The company's return on equity (ROE) is projected to improve from -13.0% in 2023A to 7.3% in 2024A, and further to 12.6% in 2025E [1][15] Business Segments - The embedded storage segment is expected to generate revenue of 84.25 billion yuan in 2024, accounting for 48% of total revenue, with a gross margin of 17.45% [2] - The SSD segment is projected to generate revenue of 41.47 billion yuan in 2024, representing 24% of total revenue, with a gross margin of 15.93% [2] - The enterprise-level storage business saw a revenue increase of 138.7% year-on-year in the first half of 2025, indicating strong demand and successful integration into major internet companies' supply chains [3][4] Market Outlook - The cessation of Micron's mobile NAND product development is expected to create new growth opportunities in the domestic consumer NAND market, potentially leading to price recovery [3] - The company is well-positioned to capitalize on the growing demand for storage solutions driven by advancements in technology and increasing digitalization [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 129.10 RMB [4][6]. Core Insights - The company achieved a record high quarterly revenue of 59.39 billion RMB in Q2 2025, benefiting from improved terminal demand and a healthier inventory level in the downstream market [1][2]. - The gross margin improved to 14.82% in Q2 2025, reflecting effective cost control measures and a recovery in storage prices [1][2]. - The company is expected to see continued growth in its enterprise storage and overseas business, with a positive outlook for storage prices in the second half of 2025 [3][4]. Summary by Sections Financial Performance - In 1H25, the company reported revenue of 101.96 billion RMB, a year-over-year increase of 12.80%, but a significant decline in net profit to 0.15 billion RMB, down 97.51% year-over-year [1][2]. - Q2 2025 revenue was 59.39 billion RMB, up 29.51% year-over-year and 39.53% quarter-over-quarter, with a net profit of 1.67 billion RMB, reflecting a 20.55% decrease year-over-year but a 209.73% increase quarter-over-quarter [1][2]. Business Growth - The Lexar brand's overseas business grew by 31.61% year-over-year in 1H25, while Zilia's revenue increased by 40.01% year-over-year, indicating strong international demand [2]. - The enterprise storage segment saw a remarkable 138.66% year-over-year revenue growth in 1H25, with Q2 2025 revenue reaching 3.74 billion RMB, up 17.24% quarter-over-quarter [2]. Market Outlook - The report anticipates that storage prices will continue to rise in the second half of 2025, driven by production cuts from major suppliers like Samsung and Micron, as well as seasonal demand in consumer electronics [3]. - The company is expected to benefit from increased capital expenditures in data centers by major clients like ByteDance and Alibaba, which will drive demand for its enterprise storage products [3]. Valuation Adjustments - Revenue forecasts for 2025-2027 have been revised upward to 241.6 billion RMB, 275.0 billion RMB, and 303.6 billion RMB, respectively, reflecting a 6.2%, 3.0%, and 2.7% increase from previous estimates [4]. - Net profit forecasts for the same period have also been increased significantly, with expected profits of 10.5 billion RMB, 13.5 billion RMB, and 15.1 billion RMB, representing increases of 56.7%, 23.0%, and 19.4% [4].

Group 1: Company Performance - In the first half of 2025, the company achieved total revenue of 10.196 billion yuan, a year-on-year increase of 12.80% [1] - The company reported a net profit attributable to shareholders of 32 million yuan, with a significant second-quarter revenue of 5.939 billion yuan, reflecting a quarter-on-quarter growth of 39.53% [1] - The second quarter's net profit attributable to shareholders reached 234 million yuan, marking a quarter-on-quarter increase of 215.94% [1] Group 2: Business Segments - The enterprise-level storage segment generated revenue of 693 million yuan, a year-on-year increase of 138.66% [3] - The overseas market saw Zilia achieve sales revenue of 1.388 billion yuan, a year-on-year growth of 40.01%, while Lexar's global sales revenue reached 2.145 billion yuan, up 31.61% year-on-year [1] Group 3: Industry Trends - The semiconductor industry is experiencing optimistic growth driven by AI, memory upgrades, and strategic supply chain adjustments [2] - The company is transitioning to a comprehensive semiconductor storage brand, focusing on the entire value chain of semiconductor storage applications [2] Group 4: Product Development - The company has expanded its main business into integrated circuit design, including main control chip design and storage chip design, enhancing market positioning [3] - The company launched various enterprise-level storage products, including eSSD and DDR5 RDIMM, and achieved compatibility certification with AMD Threadripper PRO 9000WX series [3] Group 5: AI and Innovation - The company has introduced several new products targeting AI applications, including eSSD and MRDIMM, and is pioneering QLC storage solutions [4] - The company has developed ultra-thin ePOP and small-sized eMMC products to meet the lightweight demands of AI wearable devices [5] Group 6: Business Model and Strategy - The company has established an open business model, introducing TCM (Technology Contract Manufacturing) and PTM (Product Technology Manufacturing) to enhance collaboration with clients [6] - The company’s strategy includes a three-in-one layout of self-developed main control chips, high-end packaging, and global manufacturing [7] Group 7: Global Expansion - The Lexar brand has expanded its global presence, achieving revenue growth from 864 million yuan in 2019 to 3.525 billion yuan in 2024, with a compound annual growth rate of 32.48% [8] - The company continues to launch flagship mobile storage products, enhancing its influence in the global consumer market [8]

Core Viewpoint - Jiangbolong (301308) reported a strong performance in the first half of 2025, with total revenue of 10.196 billion yuan, a year-on-year increase of 12.80%, and a significant improvement in profitability in the second quarter, achieving a record high revenue of 5.939 billion yuan, a quarter-on-quarter increase of 39.53% [1] Financial Performance - The company achieved a net profit of 0.32 billion yuan after deducting non-recurring items in the first half of 2025, with a net profit of 2.34 billion yuan in the second quarter, reflecting a quarter-on-quarter increase of 215.94% [1] - Revenue from enterprise-level storage reached 0.693 billion yuan, a year-on-year increase of 138.66% [1] - Zilia's sales revenue in overseas markets was 1.388 billion yuan, a year-on-year increase of 40.01% [1] - Lexar's global sales revenue reached 2.145 billion yuan, a year-on-year increase of 31.61% [1] Industry Trends - The global semiconductor industry continues to show optimistic growth, driven by AI-related memory upgrades, supply strategies, and rigid downstream demand [2] - Jiangbolong is transforming into a comprehensive semiconductor storage brand, focusing on the entire chain of semiconductor storage application products [2] Product Development - Jiangbolong is one of the few companies in China capable of designing and supplying "eSSD+RDIMM" products, with a new DDR5 MRIDMM product launched with a maximum capacity of 256GB [3] - The company has successfully integrated its enterprise-level products into the supply chains of leading internet companies [3] - Jiangbolong has developed QLC storage solutions and is among the few companies globally capable of mass-producing QLC eMMC products, which are already applied in various well-known brands [4] Business Model Innovation - Jiangbolong has introduced innovative business models such as TCM (Technology Contract Manufacturing) and PTM (Product Technology Manufacturing) to address industry challenges [5] - The TCM model connects manufacturers and Tier 1 customers for transparent transactions and optimized inventory [5] - The PTM model offers full-stack customization from chip design to manufacturing, addressing product homogeneity and innovation bottlenecks [6] Global Expansion - Jiangbolong's high-end consumer brand Lexar has expanded its market presence across over 60 countries, with revenue growing from 0.864 billion yuan in 2019 to 3.525 billion yuan in 2024, reflecting a compound annual growth rate of 32.48% [7] - Lexar's revenue in the first half of 2025 continued to grow by 31.61%, with the launch of several flagship mobile storage products [7] Future Outlook - The semiconductor and AI application sectors are expected to benefit from deepening domestic substitution and global supply chain restructuring, with potential for technology premium release [7] - The storage sector anticipates continued price increases for memory contracts, contributing to Jiangbolong's performance in the upcoming quarters [7]

Core Viewpoint - Jiangbolong's stock price increased by 3.86% on August 22, with a trading volume of 1.249 billion yuan, indicating positive market sentiment towards the company [1] Financing Summary - On August 22, Jiangbolong had a financing buy-in amount of 200 million yuan and a financing repayment of 223.27 million yuan, resulting in a net financing outflow of 23.36 million yuan [1] - As of August 22, the total financing and securities lending balance for Jiangbolong was 878 million yuan, with the financing balance accounting for 2.16% of the circulating market value, which is above the 90th percentile of the past year [1] - In terms of securities lending, Jiangbolong repaid 1,500 shares and sold 3,000 shares on August 22, with a selling amount of approximately 289,800 yuan [1] Shareholder and Financial Performance Summary - As of August 20, Jiangbolong had 35,000 shareholders, an increase of 3.72%, with an average of 7,830 circulating shares per person, up by 122.21% [2] - For the first half of 2025, Jiangbolong reported a revenue of 10.196 billion yuan, a year-on-year increase of 12.80%, while the net profit attributable to shareholders was 14.7663 million yuan, a significant decrease of 97.51% [2] Dividend and Institutional Holdings Summary - Since its A-share listing, Jiangbolong has distributed a total of 302 million yuan in dividends [3] - As of June 30, 2025, major institutional shareholders included E Fund's ChiNext ETF, which increased its holdings by 15,200 shares, and several new institutional investors entered the top ten shareholders list [3]

Summary of Jiangbolong's Conference Call Company Overview - **Company**: Jiangbolong - **Industry**: Storage Solutions and Semiconductor Manufacturing Key Points Financial Performance - Jiangbolong reported significant improvement in H1 2025, with Q2 revenue reaching **5.939 billion** yuan, a historical high, and gross margin rebounding to **14.82%** [2][8][11] - Effective cost control and R&D investment contributed to steady growth [2][8] Product Development - The company achieved breakthroughs in self-developed main control chips, launching multiple series with over **80 million** units deployed, expected to exceed **100 million** by the end of August [2][4] - The UFS4.1 main control chip, built on **5nm** technology, is leading in performance and supports hybrid media [2][4][23] Market Strategy - Jiangbolong is collaborating with original manufacturers like SanDisk through the TCM model to enhance domestic market share and improve server product performance and profitability [2][7] - The enterprise storage business grew nearly **200%** in H1 2025, capitalizing on a **100 billion** yuan market opportunity [2][13] International Expansion - The company’s overseas business is rapidly growing, with the Lexar brand being the only domestic high-end consumer brand operating internationally, achieving a **40%** year-on-year increase in overseas shipments [2][15][16] Technological Innovation - Jiangbolong is focused on systematic technological foundations to lead storage product innovation, with high-performance storage solutions for AI and wearable devices [6][14] - The company is advancing in high-end embedded products, with UFS4.1 market share reaching **33%** in global smartphone storage interfaces [14] Supply Chain and Inventory Management - Enhanced inventory management led to a Q2 inventory value of **8.076 billion** yuan, with effective measures resulting in a **1.57 million** yuan provision for inventory depreciation [10][11] Future Market Outlook - Global NAND Flash demand is expected to grow by approximately **10%** in 2025, driven by recovery in consumer electronics and increased AI server demand [11] - The company anticipates new growth opportunities as terminal inventory depletion completes and original manufacturers shift focus to DDR5 [11] Challenges and Adaptations - The TCM model faces challenges in inventory management but has gained customer acceptance, effectively addressing supply chain risks [17][18] - Jiangbolong plans to gradually adopt net income recognition to focus on profit accumulation rather than just sales volume [18] Competitive Landscape - Jiangbolong aims to differentiate its main control chip offerings through innovative technology, targeting the mid-to-high-end smartphone market [30] Strategic Partnerships - Collaborations with major clients and suppliers are crucial for enhancing efficiency and reducing costs, particularly in the enterprise storage sector [33][34] Product Diversification - The company is expanding its product range, including SOCAM products for AI applications, which are gaining traction due to their low power consumption and cost advantages [29][30] Conclusion - Jiangbolong is positioned for significant growth in the storage solutions market, leveraging technological advancements, strategic partnerships, and a focus on profitability over mere sales volume [34]

Core Viewpoint - Jiangbolong (301308) reported a mixed financial performance for the first half of 2025, with revenue growth but a significant decline in net profit, indicating potential challenges in profitability and cash flow management [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 reached 10.196 billion yuan, a year-on-year increase of 12.8% [1]. - Net profit attributable to shareholders was 14.7663 million yuan, down 97.51% year-on-year [1]. - In Q2 2025, total revenue was 5.939 billion yuan, up 29.51% year-on-year, while net profit was 166.7 million yuan, down 20.55% year-on-year [1]. - Gross margin decreased to 12.96%, a decline of 44.89% year-on-year, and net margin fell to 0.4%, down 93.86% year-on-year [1]. - Total operating expenses were 745 million yuan, accounting for 7.3% of revenue, a decrease of 19.06% year-on-year [1]. - Cash flow from operating activities showed a significant increase of 148.59% year-on-year, reaching 1.65 yuan per share [1]. Accounts Receivable and Liabilities - Accounts receivable increased by 37.34% year-on-year, reaching 2.263 billion yuan, indicating potential issues with cash collection [1][3]. - Interest-bearing liabilities rose by 5.28% year-on-year to 7.779 billion yuan [1]. Business Model and Market Position - The company relies heavily on R&D and marketing for its business performance, with a historical return on invested capital (ROIC) of 5.74%, indicating average capital returns [4]. - The company has faced challenges in profitability, with a median ROIC of 4.76% since its listing and two years of losses [4]. - The TCM model partnership with memory wafer manufacturers highlights the company's technological leadership and ability to meet high-performance and customized demands [7]. Fund Holdings - The top fund holding Jiangbolong shares is the Debang Semiconductor Industry Mixed Fund, which has recently increased its position [6].

Core Viewpoint - The company has reported its financial results and significant events for the first half of 2025, including asset impairment losses, changes in shareholding, and plans for H-share issuance in Hong Kong. Group 1: Company Overview - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period [3]. - The company plans to issue H-shares and apply for listing on the Hong Kong Stock Exchange [5]. Group 2: Financial Performance - For the first half of 2025, the company recognized impairment losses of 168.63 thousand yuan for accounts receivable and 19,434.74 thousand yuan for inventory [4]. - In 2024, the company recorded a provision for bad debts of 378.83 thousand yuan and inventory write-downs of 56,629.72 thousand yuan [2][4]. Group 3: Corporate Governance - The company has elected a new independent director, Ms. Deng Meishan, to enhance governance and support international development [4]. - The company has renewed its audit engagement with Ernst & Young Hua Ming for the 2025 fiscal year [4]. Group 4: Shareholder Activities - The National Integrated Circuit Industry Investment Fund plans to reduce its shareholding by up to 4,159,815 shares, which is 1.00% of the total share capital [7]. - As of July 23, 2025, the fund has completed its share reduction, lowering its stake to below 5% [7]. Group 5: Employee Initiatives - The company has approved a housing loan program for employees, with a total fund of up to 100 million yuan, of which 26.02 million yuan has been utilized as of June 30, 2025 [6].