Thinkon Semi(SH:688233) Chang Jiang Shang Bao·2025-11-11 23:29Core Viewpoint - The stock price of Shen Gong Co., Ltd. (688233.SH) has surged significantly, with a 53% increase over four trading days, driven by a price hike in NAND flash memory by SanDisk, which has created a favorable market environment for storage chip-related stocks [1][8][9]. Stock Performance - Shen Gong's stock price rose from 48.08 CNY per share to 73.43 CNY per share between November 6 and November 11, marking a cumulative increase of approximately 53% [1][6]. - The stock experienced consecutive 20% daily limits on November 10 and 11, with trading volumes reaching 16.47 billion CNY, the highest since September 26, 2025 [3][4]. Company Overview - Shen Gong is one of the few domestic companies capable of producing 8-inch lightly doped polished silicon wafers, transitioning into a "materials + components" company rooted in the Chinese market [2][14]. - The company specializes in the research, production, and sales of large-diameter silicon materials, silicon components, and semiconductor large-size silicon wafers, playing a crucial role in the semiconductor materials supply chain [11][12]. Financial Performance - In the first three quarters of 2025, Shen Gong reported revenues exceeding 3 billion CNY, a year-on-year increase of nearly 48%, and a net profit of 71.17 million CNY, representing a growth of approximately 160% [2][13]. - The company has shown a strong recovery in its operating performance, with a significant turnaround from a revenue of 1.35 billion CNY in 2023 to 3.03 billion CNY in 2024 [12][13]. Market Dynamics - The demand for storage chips has surged, positively impacting related stocks in the A-share market, including Shen Gong, which supplies core consumables to storage chip manufacturers [9][10]. - The increase in SanDisk's NAND flash contract prices by 50% has stimulated market interest in storage chip-related stocks, benefiting Shen Gong despite it not being a direct storage chip manufacturer [8][9]. Strategic Positioning - Shen Gong's core advantage lies in its silicon component business, which is crucial for plasma etching processes in storage chip manufacturing, with a high replacement frequency linked to production line utilization [9][11]. - The company aims to change its cyclical performance characteristics through the integration of self-produced materials and components, enhancing its growth potential [15].