Biwin Storage Technology (SH:688525) Soochow Securities·2024-11-03 14:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 5.03 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 136.8%. The net profit attributable to shareholders was 230 million yuan, up 147.1% year-on-year [2] - In Q3 2024, the company recorded a revenue of 1.58 billion yuan, a 62.6% increase year-on-year, while the net profit was -60 million yuan, reflecting a 70.5% increase year-on-year [2] - The company's gross margin and net margin for the first three quarters of the year were 22.5% and 4.2%, respectively, showing increases of 26.0 percentage points and 27.0 percentage points year-on-year [2] - The company has significantly increased its R&D investment, with R&D expenses reaching 340 million yuan in the first three quarters, a 123.6% increase year-on-year [2] Business Performance - The company has made breakthroughs in three major storage businesses: 1. Embedded storage, collaborating with major AI phone manufacturers and providing storage solutions for Meta's latest AI smart glasses [3] 2. Automotive-grade storage, offering SSD and SD Card products for the smart security sector, with products meeting AEC-Q100 standards [3] 3. PC storage, with SSD products entering well-known PC manufacturers and plans to launch more high-performance storage products for AIPC [3] - The advanced packaging and testing services are expanding, with a project for wafer-level advanced packaging expected to be operational by 2025 [3] Strategic Development - The company is focusing on a "5+2+X" strategy, emphasizing chip design and wafer-level advanced packaging, while exploring innovative fields such as integrated storage and computing [4] - The company has established stable partnerships with major domestic and international clients, including Qualcomm, Google, Intel, and MediaTek, and signed long-term supply agreements with leading storage wafer manufacturers [4] Financial Forecasts - The company adjusted its profit forecasts due to lower-than-expected downstream demand recovery and rising raw material costs, projecting net profits of 340 million yuan, 580 million yuan, and 730 million yuan for 2024, 2025, and 2026, respectively [4] - The current market valuation corresponds to P/E ratios of 76, 44, and 35 for 2024, 2025, and 2026 [4]