Core Viewpoint - The company reported strong financial performance in Q3 2025, with significant revenue and profit growth, exceeding expectations. Financial Performance - In Q3 2025, the company's revenue reached 6.539 billion, a quarter-on-quarter increase of 10.1%, and the net profit attributable to shareholders was 700 million, a quarter-on-quarter increase of 3.2 times [1] - For the first three quarters of 2025, the total revenue was 16.734 billion, a year-on-year increase of 26.1%, and the net profit attributable to shareholders was 713 million, a year-on-year increase of 28.0% [1] - The gross profit margin for Q3 2025 was 18.92%, up 4.10 percentage points quarter-on-quarter, while the net profit margin was 11.00%, up 7.90 percentage points quarter-on-quarter [1] Business Segments - The embedded storage business is the largest segment, projected to generate 8.425 billion in revenue for 2024, accounting for 48% of total revenue, with a gross margin of 17.45% [3] - The SSD business is the second largest, expected to generate 4.147 billion in revenue for 2024, accounting for 24% of total revenue, with a gross margin of 15.93% [3] - The enterprise storage business reported revenue of 693 million in H1 2025, a year-on-year increase of 1.4 times, and is actively participating in major client product bids [4] Product Development - As of September 30, 2025, the company has deployed over 100 million self-developed main control chips, with a focus on high-end smart terminal markets through its UFS4.1 main control chip [5] Inventory Management - As of Q3 2025, the company's inventory amounted to 8.517 billion, a quarter-on-quarter increase of 5.3%, with inventory turnover days decreasing by 1 day to 141 days [6] Market Outlook - The global AIGC wave and the "Digital China" initiative are expected to provide new growth momentum for the storage market, with the company positioned as a leading independent storage manufacturer [7] - Projected net profits for the company are expected to reach 1.160 billion, 1.852 billion, and 2.321 billion for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 101, 63, and 50 [7]

Core Insights - The company has successfully developed UFS4.1 products, a capability possessed by only a few global enterprises [1] - The UFS4.1 products, equipped with the company's self-developed main control chip, outperform comparable market products in terms of process, read/write speed, and stability [1] - The company has received recognition from major storage manufacturers, including SanDisk, and several Tier 1 clients, with the integration process accelerating [1] Product Development - The company has launched four series of multiple main control chips, utilizing advanced foundry processes that surpass mainstream products [1] - The self-developed core IP and firmware algorithms provide significant performance and power consumption advantages for the company's storage products [1] Deployment and Growth - As of the end of Q3, the cumulative deployment of the company's self-developed main control chips has exceeded 100 million units, with rapid growth continuing [1] - The UFS4.1 products are currently undergoing integration verification with multiple Tier 1 manufacturers, indicating a substantial increase in deployment scale for the year [1]

Group 1 - Jiangbolong (SZ 301308) announced a series of investor meetings scheduled for October 30-31, 2025, where the company's vice president and board secretary will participate in discussions [1] - For the year 2024, Jiangbolong's revenue composition is entirely from the storage industry, accounting for 100% [1] Group 2 - As of the latest report, Jiangbolong's market capitalization stands at 110.6 billion yuan [2] - The industry is experiencing a significant surge in overseas orders, which have increased by 246%, covering over 50 countries and regions [2] - There are warnings from entrepreneurs about potential malicious competition as some entities are selling at a loss [2]

Group 1: Market Trends and Pricing - The price of 512Gb TLC/1Tb TLC/QLC NAND in the spot market has increased by nearly 40% from September to late October 2025 [3] - The demand for servers has significantly exceeded original supply expectations due to cloud service providers increasing orders for high-capacity QLC SSDs [2] Group 2: Profitability and Supply Chain - The rising prices of wafers positively impact the company's gross margin, although raw material price fluctuations are only one factor affecting performance [4] - The company maintains strong inventory turnover and has established long-term partnerships with major wafer suppliers, ensuring supply chain resilience [4] Group 3: Business Growth and Product Development - The company ranks third in total capacity for enterprise SATA SSDs in China for the first half of 2025, leading among domestic brands [5] - The company is actively expanding its high-performance storage products for data centers and has launched SOCAMM2, designed specifically for AI data centers [5] - The UFS4.1 product, developed in-house, has shown superior performance in speed and stability compared to market alternatives, gaining recognition from major Tier 1 clients [6] Group 4: Chip Development and Deployment - The company has launched four series of storage controller chips, achieving a cumulative deployment of over 100 million units by the end of Q3 2025, with rapid growth expected [6] - The UFS4.1 products are currently undergoing validation with multiple Tier 1 manufacturers, indicating strong market potential [6]

Core Insights - Jiangbolong's stock price increased by 6.77% on November 3, with a trading volume of 5.897 billion yuan [1] - The company reported a net financing purchase of 96.62 million yuan on the same day, with a total financing and margin balance of 2.264 billion yuan [1][2] - Jiangbolong's revenue for the first nine months of 2025 reached 16.734 billion yuan, a year-on-year increase of 26.12%, while net profit grew by 27.95% to 713 million yuan [2][3] Financing and Margin Trading - On November 3, Jiangbolong had a financing purchase of 805 million yuan, with a financing balance of 2.240 billion yuan, accounting for 1.92% of its market capitalization [1] - The financing balance is above the 90th percentile level for the past year, indicating a high level of activity [1] - The company repaid 2,100 shares in margin trading while selling 2,500 shares, with a selling amount of 697,500 yuan [1] Shareholder and Institutional Holdings - As of September 30, 2025, Jiangbolong had 43,800 shareholders, an increase of 25.06% from the previous period [2] - The average number of circulating shares per shareholder decreased by 20.04% to 6,260 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 4.8541 million shares [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 311.80 [6]. Core Views - The company is expected to experience rapid growth driven by an upward cycle in the storage market, with significant contributions from enterprise-level storage products and overseas business expansion [1][4]. - The company's revenue for Q3 2025 reached RMB 6.539 billion, representing a year-over-year increase of 54.60% and a quarter-over-quarter increase of 10.09%. The net profit attributable to the parent company was RMB 698 million, showing a year-over-year increase of 1994.42% and a quarter-over-quarter increase of 318.94% [1][2]. - The report highlights strong growth in the company's Lexar brand and Zilia's overseas business, as well as improvements in gross margin due to rising storage prices and optimized product structure [2][3]. Summary by Sections Q3 2025 Performance - The company achieved a record high revenue of RMB 6.539 billion in Q3 2025, with a gross margin of 18.92%, up 4.10 percentage points quarter-over-quarter [1][2]. - The growth was attributed to successful expansion in enterprise-level storage products and strong performance in overseas markets [1][2]. Q4 2025 Outlook - The report anticipates further increases in storage prices, with predictions of a 10% rise in eSSD and 5%-10% in Mobile NAND prices [3]. - The company is expected to benefit from increased capital expenditures by domestic internet companies and a growing recognition of its enterprise-level storage products [3]. Profit Forecast and Valuation - Revenue forecasts for 2025-2027 have been revised upward to RMB 24.194 billion, RMB 30.031 billion, and RMB 34.573 billion, respectively [4][11]. - The net profit forecasts for the same period are RMB 1.511 billion, RMB 2.930 billion, and RMB 2.721 billion, reflecting significant increases compared to previous estimates [4][11].

Group 1 - Jiangbolong's stock price decreased by 5.01%, reaching 265.00 CNY per share, with a trading volume of 3.738 billion CNY and a turnover rate of 4.92%, resulting in a total market capitalization of 111.073 billion CNY [1] - Jiangbolong Electronics, established on April 27, 1999, specializes in the research, design, and sales of semiconductor storage application products, with 99.99% of its revenue coming from storage products [1] Group 2 - Debang Fund's semiconductor industry mixed fund (014319) reduced its holdings in Jiangbolong by 67,100 shares, now holding 1.2 million shares, which constitutes 5.98% of the fund's net value, making it the largest holding [2] - The fund has a current scale of 663 million CNY and has achieved a year-to-date return of 80.99%, ranking 187 out of 8,150 in its category [2] Group 3 - The fund manager of Debang's semiconductor industry mixed fund is Lei Tao, who has been in the position for 3 years and 313 days, with the fund's total asset size at 13.49 billion CNY [3] - During Lei Tao's tenure, the best fund return was 248.79%, while the worst return was -31.04% [3]

Investment Rating - The storage industry is expected to enter a "prosperity cycle" with a recommendation to focus on specific companies such as Demingli, Jiangbolong, and Zhaoyi Innovation [4][72][74]. Core Insights - The demand for storage is driven by AI, with a significant shift from HDD to SSD/DRAM due to the increasing data volume and the need for faster access [2][18][72]. - The supply side is innovating with CBA and HBF technologies to overcome the limitations of traditional memory, enhancing storage density and performance [3][40][52]. - The semiconductor equipment market is projected to benefit from increased capital expenditure by storage manufacturers, with NAND equipment market size expected to reach $13.7 billion in 2025 [4][61][72]. Summary by Sections Storage Cycle - The storage industry exhibits clear cyclical characteristics, with the current cycle driven by AI demand and supply optimization from major manufacturers [9][12]. Demand Side - The transition from cold data to warm data is accelerating the replacement of HDDs with SSDs, as AI applications require more frequent data access [2.2][28]. - The data generated by AI applications is expected to grow exponentially, with projections indicating a shift from megabytes to exabytes and zettabytes [2.1][21]. Supply Side - CBA technology is crucial for achieving high density and performance in storage solutions, with applications in next-generation DRAM and NAND technologies [3.1][40]. - HBF technology offers significant advantages in capacity and energy efficiency, positioning it as a key solution for AI applications [3.2][52]. Semiconductor Equipment - The semiconductor equipment market is anticipated to grow significantly, with NAND equipment sales projected to increase by 42.5% in 2025 [4.1][61]. - Innovations in etching and deposition equipment are essential for advancing storage density and performance [4.2][68]. Investment Recommendations - The report suggests focusing on companies that are well-positioned to benefit from the storage industry's growth, including Demingli, Jiangbolong, and Zhaoyi Innovation [4][72][74].

New Stock Issuance - New stock for Beikang Testing (920160) issued at a price of 6.70 on November 3, 2025[1] - New stock for Danna Biology (920009) issued at a price of 17.10 on November 3, 2025[1] Market Alerts - ST Zhongdi (000609) announced significant abnormal fluctuations on October 30, 2025[1] - Jiangbolong (301308) reported severe abnormal fluctuations on October 30, 2025[1] - Xiangnan Chip (300475) disclosed abnormal fluctuations on October 24, 2025[1] - Shangtai Technology (001301) announced abnormal fluctuations on November 3, 2025[1] - Hainan Development (002163) reported abnormal fluctuations on November 3, 2025[1] - Zhongrui Co., Ltd. (002374) disclosed abnormal fluctuations on November 3, 2025[1] - Fujian Jinsen (002679) announced abnormal fluctuations on November 3, 2025[1] - Yongxing Materials (002756) reported abnormal fluctuations on November 3, 2025[1] - Xinhongze (002836) disclosed abnormal fluctuations on November 3, 2025[1] - Guocheng Mining (000688) announced abnormal fluctuations on November 3, 2025[1]

Core Viewpoint - Jiangbolong (301308.SZ) announced the completion of its pre-IPO employee stockholding platform's share reduction plan, with a total of 5,479,657 shares reduced, accounting for 1.3073% of the company's total share capital [1][3]. Summary by Sections Employee Stockholding Platform - The employee stockholding platforms, including Longxi No.1, Longxi No.2, Longxi No.3, Longjian Management, and Longxi No.5, planned to reduce a total of up to 5,480,000 shares from September 11, 2025, to December 10, 2025, through centralized bidding and block trading [1][2]. - The reduction was completed by October 31, 2025, with the platforms having sold 5,479,657 shares during the period [3]. Financial Impact - The average price of the shares sold was approximately 143.67 yuan, resulting in total proceeds of about 755 million yuan from the reduction [4]. Shareholder Commitments - The actual controller, Cai Huabo, committed not to participate in the employee stockholding platform's share reduction plan until August 6, 2026, and also refrained from reducing his directly held shares for 12 months following the lifting of restrictions on August 5, 2025 [2]. Historical Context - Jiangbolong was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on August 5, 2022, with an initial public offering of 42 million shares at a price of 55.67 yuan per share, raising a net amount of approximately 218.5 million yuan after expenses [7]. - The company has faced negative cash flow from operating activities in recent years, with net cash flows of -811 million yuan, -326 million yuan, -2.798 billion yuan, and -1.19 billion yuan from 2021 to 2024 [7]. Future Plans - Jiangbolong submitted an application for issuing overseas listed foreign shares (H-shares) on March 21, 2025, and received approval from the China Securities Regulatory Commission for the issuance of up to 84,419,800 shares [8][9].