Biwin Storage Technology (SH:688525) Guoxin Securities·2025-09-02 11:18Investment Rating - The investment rating for the company is "Outperform the Market" [5][21]. Core Views - The company's revenue and gross margin improved in Q2 2025, with revenue reaching 2.369 billion yuan, a year-over-year increase of 38.2% and a quarter-over-quarter increase of 53.5%. The gross margin was 13.68%, reflecting a quarter-over-quarter increase of 11.7 percentage points [1][3]. - The storage market showed a trend of recovery in the first half of 2025, with expectations for continued improvement in the second half due to rising storage prices and an increase in customer numbers [1][3]. - The company is expanding its AI edge applications across various sectors, including mobile, wearable devices, and PCs, with significant revenue contributions from embedded storage and PC storage [2][3]. Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 2.369 billion yuan, with a gross margin of 13.68%. The net profit attributable to the parent company was -0.16 billion yuan, showing a year-over-year decline of 113.36% but a quarter-over-quarter increase of 92.61% [1]. - For the first half of 2025, embedded storage revenue was 2.286 billion yuan, while PC storage revenue reached 1.384 billion yuan [2]. Market Trends - The storage market is expected to experience a recovery in the second half of 2025, driven by rising prices and an increase in customer base [1][3]. - The company has successfully entered the supply chains of major brands such as OPPO, vivo, Lenovo, and HP, indicating strong market penetration [2][3]. Future Projections - The company anticipates that the revenue and gross margin will continue to improve, with projected net profits for 2025-2027 reaching 176 million, 294 million, and 567 million yuan, respectively [3][4]. - The company is also focusing on advanced packaging technologies, which are expected to drive long-term growth [3].