Biwin Storage Technology (688525) 东吴证券·2024-08-27 07:14Investment Rating - Buy (Maintained) [1] Core Views - Revenue and profit growth: In the first half of 2024, the company achieved revenue of 3.44 billion yuan, a year-on-year increase of 199.6%, and net profit attributable to the parent company of 280 million yuan, a year-on-year increase of 195.6%. After excluding share-based payment expenses, the net profit attributable to the parent company was 480 million yuan, a year-on-year increase of 264.1% [2] - Gross margin and net margin improvement: The gross margin and net margin for the first half of 2024 were 25.6% and 7.9%, respectively, representing year-on-year increases of 30.4 percentage points and 33.8 percentage points [2] - Embedded storage business growth: The embedded storage business achieved revenue of 2.18 billion yuan in the first half of 2024, a year-on-year increase of 303.6%, with a gross margin of 24.1% [2] - PC storage business growth: The PC storage business achieved revenue of 1.03 billion yuan in the first half of 2024, a year-on-year increase of 118.8%, with a gross margin of 27.4% [2] - Advanced packaging and testing services: The advanced packaging and testing services achieved revenue of 70 million yuan in the first half of 2024, a year-on-year increase of 61.6%, with a gross margin of 38.1% [2] - R&D and talent investment: The company increased R&D investment in solution development, chip design, advanced packaging and testing, and testing equipment, with R&D expenses reaching 210 million yuan, a year-on-year increase of 174.2% [2] Financial Forecasts - Revenue forecast: The company's total operating revenue is expected to be 7.194 billion yuan in 2024, 9.877 billion yuan in 2025, and 12.369 billion yuan in 2026, representing year-on-year growth rates of 100.34%, 37.31%, and 25.23%, respectively [1] - Net profit forecast: The net profit attributable to the parent company is expected to be 521.10 million yuan in 2024, 723.80 million yuan in 2025, and 946.74 million yuan in 2026, representing year-on-year growth rates of 183.46%, 38.90%, and 30.80%, respectively [1] - EPS forecast: The diluted EPS is expected to be 1.21 yuan in 2024, 1.68 yuan in 2025, and 2.20 yuan in 2026 [1] Business Development - Embedded storage: The company has established partnerships with major AI smartphone manufacturers such as OPPO and Transsion, and has launched various embedded storage products for AI smartphones [2] - PC storage: The company's SSD products have entered well-known PC manufacturers and are the main suppliers for domestic PCs. The company plans to launch more high-performance storage products for AIPC in the future [2] - Advanced packaging and testing: The company's Songshan Lake wafer-level advanced packaging and testing manufacturing project officially started in August and is expected to be operational in 2025, providing customers with a complete set of advanced packaging and testing solutions [2] - Automotive and industrial storage: The company has launched multiple products in the automotive-grade storage field and has achieved mass production, with products meeting the AEC-Q100 standard [2] Valuation and Market Data - Current price: 43.04 yuan [5] - 52-week low/high: 26.52 yuan / 88.00 yuan [5] - P/B ratio: 7.63x [5] - Market capitalization: 18.491 billion yuan [5] - P/E ratio: 37.07x for 2024, 26.69x for 2025, and 20.40x for 2026 [1]