Biwin Storage Technology (SH:688525) Guoxin Securities·2024-05-24 00:30Investment Rating - The report assigns an "Accumulate" rating to the company, marking it as the first rating given [7]. Core Insights - The company reported a 228% year-on-year growth in net profit excluding non-recurring items for Q1 2024, driven by a recovery in storage prices and an increase in revenue from various application markets [2][6]. - The company is focusing on five major application markets: mobile, PC, servers, smart wearables, and automotive storage, with significant client acquisitions in these sectors [2][38]. - The company has increased its R&D investment by 98% in 2023, with a clear goal for revenue growth in the coming years, aiming for 4.96 billion, 5.08 billion, and 5.78 billion yuan in net profit for 2024, 2025, and 2026 respectively [2][40]. Summary by Sections Financial Performance - In Q4 2023, the company achieved revenue of 1.47 billion yuan, a year-on-year increase of 83% and a quarter-on-quarter increase of 51%, with a gross margin of 9.3% [2]. - For Q1 2024, revenue reached 1.7 billion yuan, representing a year-on-year increase of 306% and a quarter-on-quarter increase of 18%, with a gross margin of 24.7% [2][30]. Market Position and Strategy - The company is positioned as a major player in embedded storage, focusing on a multi-dimensional layout in storage and advanced packaging [6][10]. - The company has established a comprehensive supply chain relationship with major clients, including OPPO, Lenovo, and Google, enhancing its market presence [41][38]. Growth Projections - The global storage market is expected to grow by 45% in 2024, benefiting the company as it expands its client base [2]. - The company has set ambitious revenue targets for the next three years, with projected revenues of 6.33 billion, 7.19 billion, and 8.32 billion yuan for 2024, 2025, and 2026 respectively [30][51].