兆易创新：存储周期更趋乐观 利基型DRAM市场将持续供不应求

Core Viewpoint - The company, Zhaoyi Innovation, has experienced significant growth in Q3 2023, driven by strong demand for storage products and an improved storage cycle, with a year-on-year profit increase of approximately 60% [2] Financial Performance - In Q3 2023, the company's revenue increased by 31.4% year-on-year to 2.68 billion yuan, while net profit attributable to shareholders rose by 61.1% to 508 million yuan, with a quarter-on-quarter growth of 49% [2] - The gross margin for Q3 improved by 3.7 percentage points to 40.72% due to price increases in storage products [2] Product Line Developments - The niche DRAM market is experiencing a clear supply-demand imbalance, with expectations for price increases to continue over the next two quarters and maintain relatively high levels in subsequent quarters [2][4] - The company's niche DRAM products are expected to surpass MCU business to become the second-largest product line, with significant revenue growth anticipated in the second half of the year [3] - NOR Flash is in a mild price increase cycle, and SLC NAND products are also beginning to see price increases [3] Market Outlook - The company is optimistic about the storage cycle, with expectations for continued demand driven by AI infrastructure and computing power growth from major tech companies [4] - The company anticipates that the niche DRAM market will remain tight over the next two years, with prices expected to rise further in Q4 and maintain good levels in the following year [4] Strategic Partnerships - The company has invested a total of 2.3 billion yuan in Changxin Technology, which provides good capacity support for its niche DRAM products [4] - The company plans to mass-produce its self-developed LPDDR4X series products next year and is also working on the development of LPDDR5X small-capacity products [4] Product Portfolio - The company's current product offerings include standard interface storage products such as niche DRAM (DDR3L 2Gb/4Gb, DDR4 4Gb/8Gb, LPDDR4 small-capacity products), NOR Flash, and SLC NAND Flash [5] - The company aims to leverage changes in the industry supply landscape to develop higher-density products in the 2D NAND space, but has no plans for 3D NAND or DDR5 products [5]