Core Insights - The company is strategically investing in DRAM packaging through direct investment in Xinfeng Technology and establishing a partnership with Huadong Technology to expand its advanced packaging business focused on 3D DRAM [1][2] Investment Details - The direct investment involves acquiring an 18.4414% stake in Xinfeng Technology for RMB 90.4841 million [1] - The indirect investment includes participation in private equity funds to acquire an additional 44.5756% stake in Xinfeng Technology, resulting in a total ownership of 27.5445% [1] Strategic Partnership - The collaboration with Huadong Technology aims to leverage both companies' resources to enhance DRAM packaging capabilities and address the growing market demand for 3D DRAM solutions, particularly in the context of AI infrastructure [2] Xinfeng Technology's Capacity - Xinfeng Technology currently has a packaging capacity of approximately 20,000 wafers per month, with plans to increase this to 60,000 wafers per month by the end of 2027 [3] - The company is positioned as a key partner for Changxin Storage, particularly in LPDDR5 packaging, benefiting from the expansion of leading storage manufacturers [3] Financial Projections - Revenue projections for the company are estimated at RMB 1.78 billion, 2.05 billion, and 2.4 billion for the years 2025, 2026, and 2027, respectively, with net profits of RMB 190 million, 250 million, and 320 million [4]

Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Insights - The company is strategically investing in DRAM storage packaging through direct and indirect investments in Xinfeng Technology, aiming to enhance its capabilities in advanced packaging for 3D DRAM chips [4][11] - The partnership with Huadong Technology is expected to leverage both companies' resources to expand the 3D DRAM packaging business, addressing the growing market demand driven by AI infrastructure [5][11] - The company anticipates revenue growth, projecting revenues of 1.78 billion, 2.05 billion, and 2.40 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 186.49 million, 247.75 million, and 316.55 million yuan for the same years [8][10] Company Overview - The latest closing price of the company's stock is 15.93 yuan, with a total market capitalization of 137 billion yuan and a debt-to-asset ratio of 30.3% [3][10] - The company holds a significant stake of 27.5445% in Xinfeng Technology after recent investments, which positions it to influence the operations of Xinfeng without consolidating it into its financial statements [4][11] Financial Projections - The company is expected to achieve a revenue growth rate of 21.22% in 2024, followed by 18.83% in 2025, and 14.93% in 2026 [10][13] - The projected earnings per share (EPS) are expected to increase from 0.19 yuan in 2024 to 0.37 yuan in 2027 [10][13]