Shenwan Hongyuan Securities·2025-06-23 06:43Investment Rating - The report rates the storage industry as "Overweight" indicating a positive outlook for the sector [3]. Core Insights - The global DRAM manufacturers are transitioning from DDR4 to advanced process products, with major companies like Samsung, SK Hynix, and Micron announcing plans to cease DDR4 production, marking the end of the DDR4 era and the beginning of a new technology iteration cycle led by DDR5 and HBM [3]. - The exit of major manufacturers has led to a significant increase in DDR4 spot prices, with DDR4 8Gb and 16Gb prices rising by 85.1% and 65.6% respectively in June [3]. - The rise of domestic memory manufacturers like Changxin Storage is intensifying competition for traditional giants, with Changxin's capacity projected to reach 23% of Samsung's and 40% of Micron's by 2024 [3]. - Domestic manufacturers are expected to benefit from the transition of orders and niche markets, with companies like Zhaoyi Innovation and others preparing to meet market demands with new DDR4 products [3]. - The value of storage module inventories may be reassessed due to the recent price increases, with significant inventory values reported for various storage module manufacturers [3]. Summary by Sections Industry Transition - Major DRAM manufacturers are ceasing DDR4 production, leading to a shift towards DDR5 and HBM technologies [3]. Price Dynamics - DDR4 spot prices have surged due to anticipated production cuts, with notable increases in June [3]. Competitive Landscape - Domestic manufacturers are gaining ground, posing a challenge to established players like Samsung and Micron [3]. Market Opportunities - Local firms are positioned to capture market share through new product offerings and innovations [3]. Inventory Valuation - The recent price hikes may lead to a reevaluation of inventory values among storage module manufacturers [3].