Investment Rating - The report maintains a "Recommended" investment rating for the company [1][12]. Core Insights - The company achieved a revenue of 6.832 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 20.92%. The net profit attributable to shareholders was 1.083 billion yuan, up 30.18% year-on-year [4][7]. - The gross margin for Q3 was significantly boosted by price increases in storage products, with a gross margin of 40.72% and a net margin of 19.27% for the quarter [7][8]. - The company is expected to exceed its initial target of 50% year-on-year growth in its niche DRAM business for 2025, with significant growth in the second half of the year [7][8]. Financial Performance Summary - **Revenue and Profitability**: The company forecasts revenues of 7.356 billion yuan for 2024, 9.354 billion yuan for 2025, and 12.519 billion yuan for 2026, with corresponding net profits of 1.585 billion yuan, 2.612 billion yuan, and 3.291 billion yuan respectively [6][9]. - **Margins**: The gross margin is projected to improve from 38.0% in 2024 to 40.8% in 2026, while the net margin is expected to rise from 15.0% to 20.9% over the same period [10]. - **Earnings Per Share (EPS)**: The EPS is expected to increase from 1.65 yuan in 2024 to 4.93 yuan in 2027 [10][11]. Market Position and Strategy - The company is diversifying its product offerings across various sectors, including consumer electronics, automotive, and industrial applications, which is expected to drive revenue growth [7][8]. - The company is focusing on building long-term strategic partnerships with high-quality clients, particularly in the TV, industrial, and AI-related sectors [8]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 137.5 in 2024 to 46.1 in 2027, indicating an improving valuation as earnings grow [10]. - The price-to-book (P/B) ratio is expected to decline from 9.2 in 2024 to 6.6 in 2027, reflecting a more attractive valuation over time [10].

Investment Rating - The report maintains a "Positive" investment rating for the electronic industry [4] Core Viewpoints - The niche DRAM supply-demand structure is being reshaped, with ongoing market prosperity driven by AI and domestic substitution opportunities [2][19] - The DDR4 series has shown a continuous upward trend in prices, with significant increases reported in June 2025 [7][8] - The supply gap for DDR4 and LPDDR4 persists, benefiting Tier 2 manufacturers significantly [12][18] Summary by Sections Investment Recommendations and Targets - The report suggests focusing on companies such as Zhaoyi Innovation, Beijing Junzheng, Fudan Microelectronics, and others due to the reshaping of the niche storage market and AI-driven growth opportunities [2][19] Market Trends - As of June 27, 2025, DDR4 product prices have increased significantly, with some specifications seeing price hikes of over 60% compared to the end of May [7][8] - The third quarter is expected to see further increases in DDR4 contract prices, with potential rises of 15% or more [10] Supply Chain Dynamics - Major suppliers like Micron are confirming production halts, which may exacerbate shortages in LPDDR4, leading to potential price increases [10][12] - Chinese mainland niche DRAM manufacturers are rapidly growing due to strong supply chain capabilities, with Zhaoyi Innovation and Beijing Junzheng ranking sixth and seventh globally in the niche DRAM market [18]

Core Viewpoint - Zhejiang Lijichuang Storage Technology Co., Ltd. (referred to as "Lijichuang Storage") plans to go public in Hong Kong, with CITIC Securities as the exclusive sponsor [1] Company Background - Lijichuang Storage's controlling shareholder, Ying Wei, strategically acquired Zentel Japan, and serves as the chairman of the board [2] - Ying Wei has extensive experience in investment management and holds multiple executive positions in various investment firms [2][6] Board Composition - The board consists of seven members, including two executive directors: Lin Guoxiong (Vice Chairman) and Yu Xiao (General Manager), along with two non-executive directors and three independent non-executive directors [7] Market Position - In 2024, Lijichuang Storage is expected to sell over 100 million memory chips, ranking fourth among Chinese companies in the global niche DRAM market with an 11.3% market share [9] - The company has established partnerships with major memory module manufacturers, ensuring a stable supply chain [9] Product Offering - Lijichuang Storage provides a complete product matrix, including memory chips, high-density modules, KGD wafers, and intelligent storage solutions [10][11] Financial Performance - Revenue figures for 2022, 2023, and 2024 are projected at 610 million, 580 million, and 646 million respectively, with corresponding net losses of 139 million, 244 million, and 109 million [11][12] - The company has not yet achieved profitability, primarily due to a focus on business expansion over short-term profits and fluctuations in raw material prices [12] Future Outlook - The company aims to improve financial performance and achieve profitability through continuous revenue growth, economies of scale, and operational efficiency optimization [13]