Summary of Shenzhen Longsys Electronics Co Ltd Conference Call Company Overview - **Company**: Shenzhen Longsys Electronics Co Ltd - **Ticker**: 301308.SZ - **Industry**: Technology Semiconductors - **Region**: Greater China Key Financial Highlights - **2Q25 Revenue**: Rmb5.94 billion, up 30% YoY and up 40% QoQ, driven by favorable pricing trends and new business expansion [6] - **Net Profit**: Rmb166 million in 2Q25, a turnaround from a net loss of Rmb152 million in 1Q25, attributed to favorable memory pricing [6] - **Market Capitalization**: Rmb39,882.7 million [4] - **Current Share Price**: Rmb96.60 as of August 22, 2025 [4] - **12-month Forward P/B Ratio**: 4.9x, close to historical average of 5.1x since listing [3] Market and Pricing Trends - **NAND Pricing**: Expected to settle at a 0-5% increase QoQ for 3Q, with a potential 0-5% reduction in 4Q due to lukewarm consumer demand [2] - **Enterprise Business Demand**: Robust demand anticipated for eSSD+RDIMM products, driven by domestic AI capital expenditure and localization trends in China [6] Strategic Initiatives - **Product Development**: New enterprise products such as SOCAMM and Gen5 PCIe eSSD are on track for launch and mass production [6] - **Business Expansion**: Effective execution of enterprise business expansion and new product developments amid the growth of AI infrastructure [2] Valuation and Ratings - **Price Target**: Rmb100.00, indicating a 4% upside from the current price [4] - **Stock Rating**: Overweight, reflecting a positive outlook on the company's performance relative to its industry [4] Risks and Considerations - **Upside Risks**: Better-than-expected consumer demand recovery in 2H25 and eSSD market expansion could support revenue and margin improvement [10] - **Downside Risks**: Prolonged commodity down-cycle affecting memory prices and potential share loss to new entrants in the Chinese memory market [10] Conclusion Shenzhen Longsys Electronics Co Ltd is positioned favorably within the semiconductor industry, with strong financial performance and strategic initiatives in place to capitalize on market trends. The company's focus on enterprise business and product innovation, coupled with a positive market outlook, supports its Overweight rating. However, investors should remain cautious of potential market fluctuations and competitive pressures.