An updated edition of the Aug. 19, 2025, article.Artificial Intelligence (AI) is reshaping industries by enabling machines to analyze vast datasets, identify patterns and make informed decisions. The rapid deployment of generative AI (Gen AI), agentic AI, and multi-modal learning supported by advanced hardware like GPUs and TPUs is fueling innovation across healthcare, finance, robotics, cybersecurity and e-commerce. AI now powers chatbots, diagnostics, fraud detection and autonomous systems, boosting agili ...

Core Viewpoint - Jiangbolong (301308) reported a stable revenue of 4.256 billion yuan in Q1 2025, with a net loss of 152 million yuan, indicating an improvement trend in profitability despite slow terminal recovery and inventory digestion [1] Group 1: Financial Performance - The company achieved a revenue of 4.256 billion yuan in Q1 2025, with a net loss of 152 million yuan and a non-recurring net loss of 202 million yuan [1] - The net loss margin significantly narrowed, showing signs of profitability improvement [1] - Revenue from enterprise-level storage (eSSD and RDIMM) reached 319 million yuan, growing over 200% year-on-year [2] Group 2: Product Development and Market Position - Jiangbolong has made significant progress in self-developed main control chips, successfully mass-producing UFS4.1 chips and applying over 30 million self-developed chips [3] - The company has launched new products to meet the urgent demand for high-capacity SSDs and DRAM, enhancing its offerings in mobile and smart wearable markets [3] - Jiangbolong has established deep cooperation with major automotive manufacturers, covering over 10 types of in-vehicle applications, leveraging its early entry into the automotive storage sector [2] Group 3: Brand and Market Expansion - Jiangbolong is the second-largest independent storage company globally and the largest in China, with significant brand presence in both B2B and B2C markets [4] - The Lexar brand achieved a 21% year-on-year revenue growth in Q1 2025, continuing its expansion in the global consumer market [4] - The acquisition of Zilia, a leading storage manufacturer in Brazil, has enhanced Jiangbolong's product offerings and supply chain efficiency [4] Group 4: Strategic Outlook - The company is well-positioned for future growth due to its strategic focus on high-end storage, technological breakthroughs, and effective market expansion [5] - The ongoing demand for AI hardware and high-performance computing is expected to create further opportunities for Jiangbolong's high-end business [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 300,000 KRW [2][5][8]. Core Insights - The company reported Q1 2025 revenue of 17.6 trillion KRW, a year-on-year increase of 42%, although it decreased by 11% quarter-on-quarter. The operating profit was 7.4 trillion KRW, up 158% month-on-month and down 8% quarter-on-quarter, with a gross margin of 57.3% [2][3]. - The HBM (High Bandwidth Memory) business is expected to see strong growth, with demand projected to double by 2025. The company is preparing for the mass production of its 12-layer HBM4 by the end of the year [3][10]. - The company has a market share of approximately 70% in the HBM sector, and its focus will shift towards 12-Hi HBM3E and HBM4 products [3][10]. Summary by Sections Financial Performance - In Q1 2025, DRAM revenue was 14.1 trillion KRW, up 88% year-on-year but down 4% quarter-on-quarter, accounting for 80% of total revenue. The company has increased its market share to 36% in the DRAM sector [4][16]. - NAND revenue was 3.18 trillion KRW, down 27% year-on-year and 33% quarter-on-quarter, representing 18% of total revenue. The eSSD segment is expected to drive future growth in NAND demand [4][16]. Market Outlook - The report anticipates that the prices of DRAM and NAND will stabilize in Q2-Q3 2025, driven by reduced production capacity and increased demand from AI applications [4][15]. - The company is also expanding its product offerings for AI servers, which may further enhance its market position [4][16]. Valuation and Projections - Revenue projections for 2025, 2026, and 2027 are 106 trillion KRW, 123 trillion KRW, and 135 trillion KRW, respectively, with net profits expected to be 30 trillion KRW, 37 trillion KRW, and 41 trillion KRW [5][31]. - The report maintains a target price of 300,000 KRW, corresponding to a 2.2x FY25 P/B ratio, indicating a positive long-term growth outlook for the company [5][31].