Shannon Semi(SZ:300475) China Post Securities·2025-06-25 09:18Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within the next six months [5][12]. Core Insights - The company is expected to benefit from the rising prices of DDR4 memory, with anticipated price increases of 18-23% for server DDR4 and 13-18% for PC DDR4 in the second quarter [3]. - The transition to DDR5 is accelerating, with major suppliers planning to phase out DDR4 production by early 2026, while consumer demand for DDR4 remains strong [3]. - The company has made significant progress in developing its proprietary enterprise-level storage modules, including DDR4, DDR5, and Gen4 eSSD, which are now in mass production [4]. - Revenue projections for the company are optimistic, with expected revenues of 300 billion, 352 billion, and 404 billion yuan for 2025, 2026, and 2027 respectively, alongside net profits of 7.0 billion, 11.2 billion, and 14.1 billion yuan [5][10]. Summary by Sections Company Overview - The latest closing price is 36.05 yuan, with a total market capitalization of 167 billion yuan and a total share capital of 4.64 billion shares [2]. Financial Forecasts - The company is projected to achieve revenues of 30 billion yuan in 2025, with a growth rate of 23.64%, and net profits of 704 million yuan, reflecting a significant increase of 166.52% from the previous year [10][11]. - The expected earnings per share (EPS) for 2025 is 1.52 yuan, with a price-to-earnings (P/E) ratio of 24.12 [10][11]. Market Position - The enterprise SSD market is primarily dominated by international manufacturers, but there is a growing opportunity for domestic companies, with the company positioning itself to capture this market through its "Haipu Storage" brand [4].