Group 1: Company Growth and Market Position - The company achieved a revenue of 319 million CNY in Q1 2025 for its enterprise storage products, representing a year-on-year growth of over 200% [3] - The company is one of the few A-share listed companies that publicly disclose specific enterprise storage product performance, indicating a strong market position [3] - The company has established recognition among major clients across various industries, including large internet companies and telecom operators, showcasing the adaptability and reliability of its products [3] Group 2: AI Infrastructure and Storage Demand - The demand for storage is expected to rise due to increased investment in AI infrastructure, which requires enhanced computing and storage capabilities [3] - The penetration rate of DDR5 in RDIMM products has significantly increased, driven by the performance requirements of AI servers [3] - eSSD's advantages in speed and energy efficiency are leading to its widespread adoption, replacing HDDs in cloud service providers [3] Group 3: TCM Model and Revenue Impact - The company has partnered with SanDisk to leverage its strengths in chip control and firmware development, aiming to introduce high-quality UFS products for the mobile and IoT markets [5] - The UFS4.1 product, featuring high sequential read/write speeds of 4350MB/s and 4200MB/s, has outperformed mainstream market products [5] - The TCM model is expected to enhance revenue and profit by improving visibility in supply and demand, thereby mitigating price volatility [6] Group 4: Self-Developed Controller Chips - The company has launched three self-developed controller chips for eMMC, SD cards, and automotive-grade USB products, with cumulative applications exceeding 30 million units [7] - The self-developed controller chips are anticipated to see significant growth in application scale throughout 2025 [7] - The company plans to maintain long-term collaborations with third-party controller chip manufacturers to diversify its product offerings [7] Group 5: Storage Price Trends - The semiconductor storage market has shown signs of recovery since late March 2025, driven by inventory digestion and increased downstream demand [8] - Price increases in storage products are expected in Q3 2025 due to inventory needs from server OEM customers and rising storage capacities in mobile devices [8] Group 6: Lexar and Zilia Business Growth - Lexar's global sales revenue reached over 3.5 billion CNY in 2024, with significant growth potential in market share [9] - Zilia achieved a revenue of 2.312 billion CNY in 2024, marking a year-on-year growth of 120.15%, with a 45.08% increase in Q1 2025 [10] - The integration of Zilia into the company's operations has enhanced its overseas market presence and product offerings [10]

Performance Improvement - AMD's 5th generation EPYC offers a 75% performance uplift compared to the 4th generation in Ericsson packet core solutions [1] - AMD's solutions provide a 40% power efficiency benefit generationally [2] Partnerships and Solutions - Ericsson's packet core is available on both 4th and 5th generation AMD EPYC [1] - Nokia appliance on AMD packet core is available on 2nd, 4th and 5th generation EPYC [2] - ZTE offers packet core solutions [2] Market Presence - AMD is showcasing packet core solutions at MWC 2025 [1] - Ericsson and Nokia are exhibiting their solutions at MWC [1][2]

Group 1: Competitive Advantages in Enterprise Storage - The company is one of the few A-share listed companies that officially discloses specific enterprise storage product performance, including eSSD and RDIMM [3] - In Q1 2025, the revenue from enterprise storage products reached 319 million CNY, representing a year-on-year growth of over 200% [3] - The company has gained recognition from various well-known clients across different industries, including large internet companies and telecom operators, showcasing the adaptability and reliability of its products [3] Group 2: Impact of TCM Model on Revenue and Profitability - The company has partnered with SanDisk to leverage its strengths in main control chip development and packaging, aiming to launch customized high-quality UFS products for the mobile and IoT markets [4] - The UFS 4.1 product, featuring the company's self-developed main control chip, achieves sequential read/write speeds of 4350MB/s and 4200MB/s, and random read/write speeds of 630K IOPS and 750K IOPS, outperforming mainstream market products [4] - The TCM model is expected to enhance visibility in supply and demand, reduce price volatility impacts, and create continuous value through core capabilities [5] Group 3: Future Development of Self-Developed Main Control Chips - The company has launched three main control chips for eMMC, SD cards, and automotive-grade USB products, with cumulative applications exceeding 30 million units [5] - The first batch of UFS self-developed main control chips has been successfully taped out, indicating progress in high-end product development [5] - The company anticipates significant growth in the application scale of self-developed main control chips throughout 2025, while maintaining long-term collaborations with third-party chip manufacturers to diversify its product offerings [5]

Core Insights - ZTE Corporation, in collaboration with China Mobile and Alibaba Cloud, received the GSMA GLOMO "Open Gateway Challenge" award for their AaaS Open Gateway solution, highlighting significant commercial adoption in key industry scenarios [1][2] Group 1: Collaboration and Development - China Mobile is a pioneer in the GSMA Open Gateway initiative, establishing the world's largest Open Gateway platform that enhances its services and expands application scenarios [2][3] - The collaboration has led to the development of the QoD (Quality on Demand) API, which successfully passed 63 technical tests and achieved commercial deployment [2][3] Group 2: Technological Integration - The capability exposure solution integrates telecommunications and fintech strengths, ensuring superior network quality for mobile payments through China Mobile's CT middleware platform [3] - Alipay integrates with the AaaS Open Gateway platform, utilizing Alibaba Cloud's API to enhance wireless network performance in areas with weak coverage, thus improving transaction times and reducing failure rates [4] Group 3: Future Directions - China Mobile plans to continue collaborating with industry partners to develop advanced capability APIs and application scenarios, aiming to drive 5G commercialization and global Open Gateway adoption [5] - The Open Gateway initiative, led by GSMA, aims to globalize network capability exposure through standardized APIs, fostering innovation and interoperability in the digital ecosystem [6] Group 4: Industry Recognition - The GLOMO Awards are recognized as the industry's most prestigious accolades, celebrating innovation and excellence in the mobile industry with a judging panel of over 260 global analysts and experts [7]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is deeply engaged in the storage field, focusing on semiconductor memory research, design, packaging, testing, production, and sales, with a comprehensive product line including embedded storage, PC storage, automotive-grade storage, enterprise storage, and mobile storage [1][12] - The company has established an integrated R&D and packaging testing business model, enhancing its core competitiveness in the semiconductor storage industry [1][12] - The company is expected to see significant growth in revenue and profit due to the recovery of the storage industry and the expansion of domestic and international customer bases [7][30] Summary by Sections 1. Company Overview - The company was founded in September 2010 and successfully listed on the Shanghai Stock Exchange in December 2022, focusing on semiconductor memory products and advanced packaging testing services [12][13] - The company has developed a "5+2+X" strategic framework to drive stable growth, focusing on five major application markets and two key growth areas: chip design and advanced packaging [15][12] 2. Demand Side - Storage prices have stabilized and are beginning to rise, driven by increased demand for storage devices due to the rapid development of artificial intelligence technologies [2][3] - The market for embedded products is experiencing supply tightness due to the discontinuation of low-capacity NAND resources by original manufacturers [2] 3. Supply Side - The domestic chip replacement is accelerating, with Chinese companies like Yangtze Memory Technologies and Changxin Memory Technologies rapidly increasing their market share [3][6] - The report highlights that China's DRAM production capacity has surpassed 11% of global capacity, with expectations for further growth [3] 4. Financial Performance - The company achieved a revenue of 50.25 billion yuan in the first three quarters of 2024, a year-on-year increase of 136.76%, driven by the recovery of the storage industry and significant growth in product sales [30][31] - The forecasted net profits for 2024-2026 are 176 million yuan, 598 million yuan, and 764 million yuan respectively, with corresponding EPS of 0.41 yuan, 1.39 yuan, and 1.77 yuan [7][30] 5. Competitive Advantages - The company possesses strong technical capabilities in embedded storage and has established a comprehensive product matrix covering various storage types, enhancing its competitive edge in the market [7][18] - The company is actively expanding its advanced packaging capabilities, which are expected to be operational by 2025, providing a full suite of storage and advanced packaging testing solutions [7][21]