Micron Technology(US:MU) SINOLINK SECURITIES·2024-09-27 00:11Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][12]. Core Insights - The company reported FY24 Q4 revenue of $7.75 billion, a year-over-year increase of 93% and a quarter-over-quarter increase of 14% [2]. - The GAAP gross margin for FY24 Q4 was 35.3%, up 46.1 percentage points year-over-year and up 8.4 percentage points quarter-over-quarter [2]. - The company expects FY25 Q1 revenue guidance of $8.7 billion, representing an 84% year-over-year increase [2]. - The company anticipates a significant increase in net profit for FY25, projecting $9.11 billion, which is a 1070.4% increase compared to FY24 [6]. Revenue and Profit Analysis - For FY24 Q4, the company's DRAM revenue was $5.3 billion, with a stable bit shipment and a price increase of approximately 15% quarter-over-quarter [3]. - NAND revenue for FY24 Q4 was $2.4 billion, with a high single-digit percentage increase in bit shipments and a price increase of 5%-10% [3]. - The company expects a 15% growth in both DRAM and NAND bit shipments in FY25 [3]. Capital Expenditure and Future Outlook - The company reported a capital expenditure (CAPEX) of $8.1 billion for FY24 and expects it to be approximately 35% of revenue for FY25, indicating significant growth [3]. - New factories in Idaho and New York are expected to not contribute to DRAM supply in FY25 and FY26 [3]. Earnings Forecast and Valuation - The projected net profits for FY25, FY26, and FY27 are $9.11 billion, $14.94 billion, and $13.49 billion, respectively [4]. - The projected book values per share for FY25, FY26, and FY27 are $48.56, $61.68, and $73.40, respectively, with corresponding price-to-book (P/B) ratios of 2.0, 1.6, and 1.3 [4].