Biwin Storage Technology (SH:688525) Great Wall Securities·2025-03-03 07:20Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is deeply engaged in the storage field, focusing on semiconductor memory research, design, packaging, testing, production, and sales, with a comprehensive product line including embedded storage, PC storage, automotive-grade storage, enterprise storage, and mobile storage [1][12] - The company has established an integrated R&D and packaging testing business model, enhancing its core competitiveness in the semiconductor storage industry [1][12] - The company is expected to see significant growth in revenue and profit due to the recovery of the storage industry and the expansion of domestic and international customer bases [7][30] Summary by Sections 1. Company Overview - The company was founded in September 2010 and successfully listed on the Shanghai Stock Exchange in December 2022, focusing on semiconductor memory products and advanced packaging testing services [12][13] - The company has developed a "5+2+X" strategic framework to drive stable growth, focusing on five major application markets and two key growth areas: chip design and advanced packaging [15][12] 2. Demand Side - Storage prices have stabilized and are beginning to rise, driven by increased demand for storage devices due to the rapid development of artificial intelligence technologies [2][3] - The market for embedded products is experiencing supply tightness due to the discontinuation of low-capacity NAND resources by original manufacturers [2] 3. Supply Side - The domestic chip replacement is accelerating, with Chinese companies like Yangtze Memory Technologies and Changxin Memory Technologies rapidly increasing their market share [3][6] - The report highlights that China's DRAM production capacity has surpassed 11% of global capacity, with expectations for further growth [3] 4. Financial Performance - The company achieved a revenue of 50.25 billion yuan in the first three quarters of 2024, a year-on-year increase of 136.76%, driven by the recovery of the storage industry and significant growth in product sales [30][31] - The forecasted net profits for 2024-2026 are 176 million yuan, 598 million yuan, and 764 million yuan respectively, with corresponding EPS of 0.41 yuan, 1.39 yuan, and 1.77 yuan [7][30] 5. Competitive Advantages - The company possesses strong technical capabilities in embedded storage and has established a comprehensive product matrix covering various storage types, enhancing its competitive edge in the market [7][18] - The company is actively expanding its advanced packaging capabilities, which are expected to be operational by 2025, providing a full suite of storage and advanced packaging testing solutions [7][21]