Core Viewpoint - The company achieved a revenue of 7.356 billion yuan in 2024, representing a year-over-year increase of 27.7%, and a net profit attributable to shareholders of 1.103 billion yuan, up 584.2%, aligning with previous forecasts [1] Group 1: Financial Performance - In Q1 2025, the company reported a revenue of 1.909 billion yuan, showing a year-over-year growth of 17.3% and a quarter-over-quarter increase of 11.9% [1] - The net profit for Q1 2025 was 235 million yuan, reflecting a year-over-year increase of 14.6% but a quarter-over-quarter decline of 13.2% [1] - The overall gross margin for Q1 2025 was 37.44%, with a year-over-year decrease of 0.72 percentage points but an improvement of 4.27 percentage points quarter-over-quarter, driven by product structure optimization [2] Group 2: Business Segments - The storage business generated revenue of 5.194 billion yuan in Q1 2025, a year-over-year increase of 27.4%, with significant growth in self-branded DRAM products [2] - The MCU business revenue reached 1.706 billion yuan, up 29.6% year-over-year, supported by demand in energy, optical modules, and networking sectors, with a shipment of 540 million units [2] - The sensor business reported revenue of 448 million yuan, reflecting a year-over-year increase of 27.2% [2] Group 3: Market Outlook - The DRAM business is expected to see a turning point in the second half of 2025, with signs of price recovery for large-capacity products and a more balanced market supply-demand structure [3] - The company anticipates a revenue contribution from DDR4 8Gb and LPDDR4 products in 2025, with a projected transaction amount with Changxin reaching 1.161 billion yuan [3] - The MCU segment is expected to continue gaining market share in industrial, white goods, and automotive sectors, while also exploring new markets like robotics [3] Group 4: Investment Recommendations - The target price is set at 139.1 yuan, maintaining a "buy" rating, with projected net profits of 1.51 billion yuan, 1.91 billion yuan, and 2.30 billion yuan for 2025, 2026, and 2027 respectively [4] - The company is expected to benefit from the rapid growth of customized storage products driven by AI developments, with a valuation of 61 times the 2025 PE ratio [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 139.10 RMB [4][7]. Core Insights - The company achieved a revenue of 7.356 billion RMB in 2024, representing a year-over-year increase of 27.7%, and a net profit of 1.103 billion RMB, up 584.2% year-over-year [1][2]. - In Q1 2025, the company reported a revenue of 1.909 billion RMB, a year-over-year increase of 17.3% and a quarter-over-quarter increase of 11.9%, with a net profit of 235 million RMB, up 14.6% year-over-year but down 13.2% quarter-over-quarter [1][2]. - The growth in revenue is attributed to government subsidies boosting demand in mobile phones, home appliances, and wearables, as well as increased storage capacity needs driven by AI PCs and servers [1][2]. Summary by Sections Revenue and Profitability - The company's storage, MCU, and analog products achieved record sales in 2024, with storage revenue reaching 5.194 billion RMB (up 27.4% year-over-year), MCU revenue at 1.706 billion RMB (up 29.6% year-over-year), and sensor revenue at 448 million RMB (up 27.2% year-over-year) [2]. - The overall gross margin for Q1 2025 was 37.44%, showing a quarter-over-quarter improvement of 4.27 percentage points, primarily due to product mix optimization [2]. Business Outlook - For 2025, the company expects continued growth across all business segments, with DRAM prices showing signs of recovery in the second half of the year and custom storage projects advancing in mobile, AI PC, and automotive sectors [3]. - The MCU segment is anticipated to benefit from domestic substitution trends, with market share growth in industrial, white goods, and automotive sectors [3]. Financial Projections - The company forecasts net profits of 1.514 billion RMB, 1.910 billion RMB, and 2.302 billion RMB for 2025, 2026, and 2027 respectively, with a projected revenue growth rate of 28.02% in 2025 [4][6]. - The estimated EPS for 2025 is 2.28 RMB, with a PE ratio of 49.41 [6][4].