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]