Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [13]. Core Insights - The company has shown steady revenue growth in Q3 2025, with a focus on the full-chain layout of ASIC and storage modules [3][5]. - The company is actively collaborating with Tianlianxin and Xincun Technology to establish a comprehensive layout for ASIC and enterprise-level storage modules, indicating a strong growth potential in these sectors [8][10]. - The report highlights the company's strategic focus on high-end production lines and the development of complex modules and automotive electronics, which are expected to drive future growth [7][11]. Summary by Sections Financial Performance - For Q1-Q3 2025, the company reported revenue of 1.338 billion yuan, a year-on-year increase of 26%, and a net profit attributable to shareholders of 113 million yuan, up 8% year-on-year [6]. - In Q3 2025, revenue reached 483 million yuan, reflecting a year-on-year growth of 21%, while net profit decreased by 5% year-on-year to 38 million yuan [6]. Business Development - The company is advancing its complex module production, which has begun small-scale supply, marking a significant step from single display modules to integrated solutions [7]. - The automotive electronics segment is experiencing rapid growth, with key clients including BYD and Dongfeng, and the company is enhancing its product offerings with new technologies [7]. Market Outlook - The report anticipates significant growth in the enterprise-level SSD market driven by AI and data center demands, with projections indicating the global market could reach 39.6 billion USD by 2029 [9]. - The company is well-positioned to capitalize on the growing demand for ASIC chips and enterprise-level storage solutions, supported by its investments in relevant technologies [10][11].

Core Viewpoint - Deminli is optimizing its previous fundraising project by increasing investment in the "PCIe SSD storage control chip and module project" from 498.56 million yuan to 743.36 million yuan, with a new implementation site in Shenzhen Guangming, aiming to meet the explosive demand in the AI server storage sector [1] Group 1: Market Demand and Infrastructure - The demand for AI computing power is surging, becoming a focal point in the capital market, as evidenced by Oracle's recent acquisition of a $300 billion computing power contract from OpenAI [2] - Major domestic cloud service providers are significantly increasing capital expenditures, with ByteDance expected to invest 150 to 160 billion yuan by 2025, Alibaba over 380 billion yuan in the next three years, and Tencent nearing 100 billion yuan [2] - The AI industry is projected to contribute over 11 trillion yuan to China's GDP by 2035, potentially driving computing power demand to grow tenfold or even a hundredfold [2] Group 2: Technological Advancements and Market Trends - The iteration of AI storage technology is accelerating market expansion, with innovations in multi-level cache architecture and task-specific designs enhancing data storage capabilities [3] - IDC predicts that global SSD shipment capacity will rise to 805 exabytes by 2025, accounting for 25% of total global storage, while the Chinese enterprise SSD market is expected to reach $6.25 billion in 2024, a 187.9% increase from 2023 [3] Group 3: Domestic Market Opportunities and Competitive Positioning - The urgency of the domestic replacement window is highlighted, with Solidigm and Samsung holding over 65% of the Chinese enterprise SSD market, leaving domestic manufacturers with less than 30% [4] - Deminli is leveraging its self-developed technology and understanding of end-user applications to enhance storage performance and stability through a comprehensive customization capability [4] - The company is establishing a new base in Shenzhen Guangming to support automated production and digital management, aiming for flexible production to meet high-quality, customized AI storage demands [4] Group 4: Future Prospects and Strategic Value - With the implementation of fundraising projects and existing domestic solutions, the company is expected to further enhance its technological leadership and market coverage, promoting the penetration of domestic storage in high-performance AI scenarios [5]