Group 1: Market Position and Product Development - The company ranks third in the total capacity of enterprise-grade SATA SSDs in China for 2024, and first among domestic brands according to IDC data [3] - The company has successfully introduced SOCAMM products, which are designed for AI servers, achieving over 2.5 times the bandwidth and approximately 20% lower latency compared to traditional RDIMM [3] - The company has deployed over 80 million units of its main control chips by the end of July, with rapid growth in deployment scale [4] Group 2: Strategic Partnerships and Business Models - The company has established a TCM (Technology Contract Manufacturing) model, which connects wafer manufacturers directly with core downstream customers, reducing the complexity of traditional storage module business models [4] - A strategic partnership with SanDisk has been formed to launch customized high-quality UFS products and solutions for the mobile and IoT markets [6] - The TCM model has shown good demonstration effects and is expected to achieve breakthroughs in cooperation with more manufacturers and Tier 1 customers [4] Group 3: Product Performance and Future Plans - The UFS4.1 products equipped with self-developed main control chips achieve sequential read/write speeds of 4350MB/s and 4200MB/s, and random read/write performance of 630K IOPS and 750K IOPS, significantly outperforming mainstream market products [5] - The company is preparing for the development of the next generation of main control chips to meet the increasing performance demands of AI terminals [5] - The company has launched new embedded products such as UFS4.1, eMMC Ultra, and QLC eMMC, leveraging its self-developed technologies to meet market demands [6]

Group 1: Jiangbolong - Jiangbolong's domestic market share in eSSD is second only to Solidigm and Samsung, with PCIe SSD and RDIMM products already in mass production for leading domestic enterprises [1] - The company's SOCMM products have been launched, offering over 2.5 times the bandwidth of traditional RDIMM and a 20% reduction in latency, while being one-third the size of standard RDIMM [1] - Jiangbolong has introduced TCM mode and partnered with SanDisk to launch customized UFS products, accelerating adoption among multiple Tier 1 customers [1] Group 2: Tianfu Communication - In the first half of 2025, Tianfu Communication achieved revenue of 2.456 billion yuan, a year-on-year increase of 57.84%, and a net profit of 899 million yuan, up 37.46% [2] - The growth in active business is primarily driven by increased deliveries of high-speed active products, with the company continuously expanding its customer base [2] - The company's Thailand factory has commenced production, with phase two focused on R&D and customer validation, expecting large-scale production next year [2]

Group 1: Business Strategy and Product Development - The company focuses on enterprise-level storage products, emphasizing high-end technology, long R&D cycles, and strong customer loyalty, which tests the comprehensive strength of storage enterprises [2] - The SOCAMM product, designed for AI data centers, offers over 2.5 times the bandwidth and approximately 20% lower latency compared to traditional RDIMM, with a size one-third that of standard RDIMM [3] - The company has achieved a cumulative deployment of over 80 million self-developed main control chips by the end of July, with rapid growth expected [5] Group 2: Market Position and Competitive Advantage - The company ranks second in domestic market share for eSSD, following Solidigm and Samsung, with PCIe products starting to be adopted by leading domestic enterprises [2] - The TCM (Technology Contract Manufacturing) model is being developed to connect wafer manufacturers with core downstream customers, aiming to reduce industry cycle fluctuations and enhance market responsiveness [4] - The company has established strategic partnerships with major clients like SanDisk to launch customized high-quality UFS products for the mobile and IoT markets [6] Group 3: Financial Performance and Future Outlook - The company anticipates significant growth opportunities through its TCM model, which has already shown positive effects in collaboration with industry participants [4] - The self-developed UFS4.1 product achieves sequential read/write speeds of 4350MB/s and 4200MB/s, with random read/write performance reaching 630K IOPS and 750K IOPS, outperforming mainstream market products [5] - The company is preparing for the development of the next generation of main control chips to meet the increasing performance demands of AI terminals [5] Group 4: Risk Management and Market Challenges - Investors are advised to be cautious regarding the SOCAMM product, which has not yet generated revenue despite its potential applications in AI servers [3] - The company is leveraging its self-developed technologies to navigate market challenges and capitalize on growth opportunities in embedded business sectors [5]

Investment Rating - The report maintains an "Accumulate" rating for Jiangbolong (301308.SZ) [5] Core Views - The company is expected to benefit from a recovery in storage prices and a continuous increase in enterprise-level storage orders, with a significant quarter-on-quarter increase in net profit [1][2] - The embedded storage business is projected to continue its growth trajectory, while the SSD business is anticipated to benefit from the expansion of enterprise-level storage [2][3] - The global AIGC wave and the "Digital China" initiative are expected to provide new growth momentum for the storage market, positioning the company as a leading independent storage manufacturer in China [4] Financial Summary - For 2023A, the company reported revenue of 10,125 million yuan, with a year-on-year growth rate of 21.6%. The projected revenue for 2024A is 17,464 million yuan, reflecting a growth rate of 72.5% [1][15] - The net profit attributable to the parent company is expected to turn positive in 2024A, reaching 499 million yuan, with a significant year-on-year growth of 160.2% [1][15] - The company's return on equity (ROE) is projected to improve from -13.0% in 2023A to 7.3% in 2024A, and further to 12.6% in 2025E [1][15] Business Segments - The embedded storage segment is expected to generate revenue of 84.25 billion yuan in 2024, accounting for 48% of total revenue, with a gross margin of 17.45% [2] - The SSD segment is projected to generate revenue of 41.47 billion yuan in 2024, representing 24% of total revenue, with a gross margin of 15.93% [2] - The enterprise-level storage business saw a revenue increase of 138.7% year-on-year in the first half of 2025, indicating strong demand and successful integration into major internet companies' supply chains [3][4] Market Outlook - The cessation of Micron's mobile NAND product development is expected to create new growth opportunities in the domestic consumer NAND market, potentially leading to price recovery [3] - The company is well-positioned to capitalize on the growing demand for storage solutions driven by advancements in technology and increasing digitalization [4]

Core Viewpoint - Jiangbolong (301308) reported a strong performance in the first half of 2025, with total revenue of 10.196 billion yuan, a year-on-year increase of 12.80%, and a significant improvement in profitability in the second quarter, achieving a record high revenue of 5.939 billion yuan, a quarter-on-quarter increase of 39.53% [1] Financial Performance - The company achieved a net profit of 0.32 billion yuan after deducting non-recurring items in the first half of 2025, with a net profit of 2.34 billion yuan in the second quarter, reflecting a quarter-on-quarter increase of 215.94% [1] - Revenue from enterprise-level storage reached 0.693 billion yuan, a year-on-year increase of 138.66% [1] - Zilia's sales revenue in overseas markets was 1.388 billion yuan, a year-on-year increase of 40.01% [1] - Lexar's global sales revenue reached 2.145 billion yuan, a year-on-year increase of 31.61% [1] Industry Trends - The global semiconductor industry continues to show optimistic growth, driven by AI-related memory upgrades, supply strategies, and rigid downstream demand [2] - Jiangbolong is transforming into a comprehensive semiconductor storage brand, focusing on the entire chain of semiconductor storage application products [2] Product Development - Jiangbolong is one of the few companies in China capable of designing and supplying "eSSD+RDIMM" products, with a new DDR5 MRIDMM product launched with a maximum capacity of 256GB [3] - The company has successfully integrated its enterprise-level products into the supply chains of leading internet companies [3] - Jiangbolong has developed QLC storage solutions and is among the few companies globally capable of mass-producing QLC eMMC products, which are already applied in various well-known brands [4] Business Model Innovation - Jiangbolong has introduced innovative business models such as TCM (Technology Contract Manufacturing) and PTM (Product Technology Manufacturing) to address industry challenges [5] - The TCM model connects manufacturers and Tier 1 customers for transparent transactions and optimized inventory [5] - The PTM model offers full-stack customization from chip design to manufacturing, addressing product homogeneity and innovation bottlenecks [6] Global Expansion - Jiangbolong's high-end consumer brand Lexar has expanded its market presence across over 60 countries, with revenue growing from 0.864 billion yuan in 2019 to 3.525 billion yuan in 2024, reflecting a compound annual growth rate of 32.48% [7] - Lexar's revenue in the first half of 2025 continued to grow by 31.61%, with the launch of several flagship mobile storage products [7] Future Outlook - The semiconductor and AI application sectors are expected to benefit from deepening domestic substitution and global supply chain restructuring, with potential for technology premium release [7] - The storage sector anticipates continued price increases for memory contracts, contributing to Jiangbolong's performance in the upcoming quarters [7]

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]

Core Viewpoint - Jiangbolong aims to break the "curse" of storage module operations by achieving over $2 billion in revenue and transitioning towards becoming a semiconductor storage brand [1][2]. Group 1: Self-Developed Chip Strategy - Jiangbolong has increased its investment in technology to support its transition to a semiconductor storage brand, focusing on algorithm and IP design [2]. - The company established a main control chip team in 2020 and launched eMMC and SD controllers last year, marking a significant milestone in its self-developed chip strategy [4][5]. - The self-developed main control chips allow for application innovation in storage technology, enabling high customization based on customer needs [4]. Group 2: New Product Launches - Jiangbolong introduced several self-developed main control chips at the flash memory summit, including WM7400 (UFS 4.1), WM7300 (UFS 3.1), and WM3000 (USB 3.2) [5][6]. - The UFS 4.1 main control chip WM7400 features advanced manufacturing processes and supports both TLC and QLC NAND Flash, achieving sequential read speeds of up to 4350MB/s [7][8]. - The eMMC Ultra product, equipped with the WM6000 main control chip, enhances bandwidth by 50% compared to the eMMC 5.1 standard, providing a theoretical speed of 600MB/s [9][10]. Group 3: Automotive Storage Solutions - Jiangbolong has developed a comprehensive automotive storage product matrix, including AEC-Q100 compliant UFS, eMMC, and LPDDR4x products [11]. - The company has established deep partnerships with over 20 OEMs and 50 Tier 1 automotive clients, with a projected market growth of nearly 100% in the automotive sector [12][18]. Group 4: Business Model Transformation - Jiangbolong is shifting its business model to include Technology Contract Manufacturing (TCM) and Product Technology Manufacturing (PTM) services, aiming to reduce costs and optimize inventory management [15][16]. - The PTM model provides comprehensive storage Foundry services, addressing industry homogenization and innovation bottlenecks [16][18]. - The company has successfully implemented the PTM model across various industries, including automotive, servers, and mobile devices, enhancing its market presence [18][19]. Group 5: Global Market Expansion - Jiangbolong is accelerating its global market strategy, particularly in the Americas and Europe, to deepen the implementation of TCM and PTM models [20][21]. - The company aims to leverage its self-developed chips and proprietary packaging to enhance its service capabilities and meet diverse customer needs [23][24].