Shannon Semi(SZ:300475) Guotou Securities·2025-09-08 08:51Investment Rating - The report assigns a "Buy-A" investment rating for the company, with a target price of 53.36 CNY based on a 38x PE for 2025 [4][7][16]. Core Insights - The company achieved a record high revenue of 171.23 billion CNY in H1 2025, representing a year-on-year increase of 119.35%. The net profit attributable to shareholders was 1.58 billion CNY, up 0.95% year-on-year [1][2]. - The growth in revenue is driven by strong demand for electronic components, particularly in the AI sector and the recovery of electronic products, alongside rising storage prices due to supply adjustments [2][3]. - The company has successfully launched its own brand "Haipu Storage," entering mass production of enterprise-level DDR4, DDR5, and Gen4 eSSD products, which are expected to meet the growing domestic demand for storage solutions [3][4]. Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 92.17 billion CNY, a year-on-year increase of 67.48% and a quarter-on-quarter increase of 16.59%. The net profit for the quarter was 1.41 billion CNY, showing a year-on-year decrease of 0.80% but a significant quarter-on-quarter increase of 743.49% [1][2]. Revenue Projections - The company is projected to achieve revenues of 353.07 billion CNY, 400.24 billion CNY, and 447.79 billion CNY for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 6.51 billion CNY, 9.05 billion CNY, and 10.78 billion CNY [4][16]. Market Position and Strategy - As a leading domestic distributor of storage products, the company has established a dual business model of "distribution + products." This positions it well to capitalize on the upward cycle in storage demand and the trend of domestic substitution in enterprise-level storage [4][16]. - The company plans to continue increasing R&D investments to enhance its proprietary brand's product capabilities, aiming for rapid growth in the enterprise storage sector [3][4].