Summary of Conference Call Notes Company and Industry Involved - The conference call discusses **帝科股份 (Dike Co., Ltd.)**, focusing on its involvement in the **storage and high copper silver paste industries**. Core Points and Arguments 1. **Market Underestimation of Storage Business** The company believes its storage business is still undervalued by the market, with significant potential for valuation improvement. The focus is on DDR4/DDR5 and LPDDR4/LPDDR5 DRAM chip design, targeting products for OTT set-top boxes, AIoT, and mobile devices [1] 2. **Acquisition of 因梦控股** In September 2024, the company acquired 因梦控股, marking its official entry into the storage industry [1] 3. **Acquisition of 江苏晶凯** In November 2025, the company plans to acquire 江苏晶凯, which possesses advanced packaging technologies and testing capabilities for DRAM, including multi-layer stacking and ultra-thin die packaging [1] 4. **Technological Edge in Storage B Products** 江苏晶凯 is noted for its technical barriers in handling storage B products, being the only company in the industry that covers the entire process from core equipment to product algorithm optimization [2] 5. **Revenue Projections for 江苏晶凯** - 2024 revenue is projected at approximately **200 million yuan** with a gross margin of around **30-40%** - 2025 revenue is expected to reach **500 million yuan**, with a net profit of about **130 million yuan** and a gross margin of **60%** - By 2027, the target is to ship **50-70 million units** with a profit of **2-3 USD** per unit [2] 6. **Future Plans for Memory Products** The company plans to extend its product line to include CXL memory pools and server memory products by 2027, with an investment goal of generating **2-3 billion yuan** in revenue by 2028 [2] Other Important but Potentially Overlooked Content 1. **Risk Factors** The company highlights potential risks including slower-than-expected capacity expansion by original manufacturers, increased industry competition, and a slowdown in storage price increases [3]

Group 1 - The semiconductor equipment ETF (159516) has seen a significant increase of over 3% on November 18, with a year-to-date share growth of over 160%, reaching a scale of over 6.2 billion yuan, ranking first among similar products [1][7] - The storage market is currently experiencing a notable price increase cycle driven by explosive growth in enterprise-level storage demand due to AI applications and a structural supply tightness in traditional storage products [3] - Major storage manufacturers, including Samsung, SK Hynix, Kioxia, and Micron, have reduced NAND Flash supply in the second half of this year, which may prolong the tight supply situation and further drive up NAND prices [3] Group 2 - The "domestic substitution" trend has become a necessity in the semiconductor industry, creating a stable domestic market for equipment and materials companies, which can withstand global cyclical fluctuations [4] - The storage chip industry is entering a new upcycle, supporting the high-quality development of the digital economy, and companies achieving technological breakthroughs in key areas are likely to outperform expectations [4] - The semiconductor equipment ETF (159516) is positioned to benefit from the increasing importance of semiconductor equipment amid escalating geopolitical tensions and the expansion of advanced process and storage production [5] Group 3 - The semiconductor equipment ETF (159516) tracks the CSI Semiconductor Materials and Equipment Theme Index, representing the fundamental progress in the equipment and materials sector [5] - Key companies within the semiconductor equipment ETF include Zhongwei Company (17.29% weight), Northern Huachuang (13.46% weight), and Tuojing Technology (6.05% weight), among others [6]

Group 1 - The storage chip sector has seen significant activity, with companies like Baiwei Storage rising over 18% and reaching historical highs, while other firms like ShenGong and Zhaoyi Innovation also experienced notable gains [1] - Major storage manufacturers, including Samsung, SK Hynix, Kioxia, and Micron, are reducing NAND flash supply in the second half of the year and are planning to increase prices by 20% to 30% [1] - The storage market is currently undergoing a significant price increase cycle driven by explosive growth in enterprise storage demand due to AI applications and a structural supply tightness in traditional storage products [1] Group 2 - If AI demand remains strong and supply does not effectively expand, the tight supply-demand situation in the storage market may persist into 2026, maintaining high industry prosperity [2] - The ongoing price increases in storage are expected to create cyclical investment opportunities, with a focus on storage and computing demand sectors [2] - To meet the growing storage demand, manufacturers may increase capital expenditures, which could boost demand for semiconductor equipment, particularly in critical areas like etching and deposition [2]

Investment Rating - The industry investment rating is maintained as "Positive" [3] Core Viewpoints - Changxin Technology's planned IPO is expected to benefit the entire semiconductor industry chain, particularly the upstream semiconductor equipment materials and storage sectors [2][6] - The advanced storage and logic capacity expansion continues, with domestic storage leader Changxin Technology expected to increase its capacity by nearly 50% year-on-year in 2025 [6] - The demand for storage is recovering, and some storage price increases have been ongoing for several months, indicating a positive outlook for niche DRAM manufacturers in mainland China [6] Summary by Sections Industry Overview - Changxin Technology, a core enterprise in the DRAM industry chain in mainland China, is undergoing IPO preparations, which is expected to facilitate business expansion through financing [6] - The company's product range includes DDR4/DDR5 and LPDDR4/LPDDR5 series, with plans to deliver HBM3 samples by the end of 2025 and to start mass production in 2026 [6] Market Dynamics - Changxin's market share in terms of bit shipments is projected to increase from 6% in Q1 to 8% by the end of the year, with DDR5/LPDDR5 market shares expected to rise significantly [6] - The supply gap for DDR4 and LPDDR4 continues to exist, benefiting domestic storage manufacturers and niche storage design companies [6] Investment Recommendations - Recommended stocks in the semiconductor equipment and materials sector include Northern Huachuang, Shengmei Shanghai, and Zhongwei Company [6] - In the storage industry chain, recommended stocks include Zhaoyi Innovation and Beijing Junzheng [6]