2025-10-27 00:30Summary of Conference Call on Storage Industry and Key Companies Industry Overview - The storage industry is experiencing a significant upward trend in capital expenditure driven by product iterations, particularly the transition from over 200-layer to over 300-layer NAND products, with a capital expenditure slope of approximately 20%-30% per 10,000 wafers [1][2] - DRAM technology innovations, such as the increase in DDR5 market share, the implementation of 3D DRAM projects, and the industrialization of domestic HBM, are expected to further drive capital expenditure growth in the coming year [1][2] Impact on Equipment Companies - The cyclical changes in the storage industry significantly affect the revenue of upstream equipment companies. Since 2019, overseas equipment companies have seen a compound annual growth rate (CAGR) of 25%-30% in storage chain revenue [1][3] - Domestic companies like Zhongwei and Tuojing Technology benefit from the high localization rate of long-term storage equipment, with revenue exposure from the storage sector reaching 60%-70% [4][5] Key Companies Recommended - Tuojing Technology and Zhongwei Company are recommended due to their expected growth in orders from long-term storage expansion, with Zhongwei anticipating a 30%-40% increase in orders next year [1][5] - Tuojing Technology is expected to see rapid improvement in profitability driven by accelerated order delivery, a gross margin recovery to over 40%, and a reduction in expense ratios to 20%-25% [1][5][6] Factors Driving Profitability for Tuojing Technology - Key factors for Tuojing Technology's future profitability include: - Accelerated order delivery leading to significant revenue growth - Recovery of gross margins to over 40% - Expense reductions, including stable employee compensation and decreased stock incentive costs, allowing profit margins to potentially rise to 20%-25% [6] - New layouts in the hybrid bonding sector are expected to create additional market demand, particularly with the rollout of 3D DRAM projects and HBM 5 industrialization [6] Importance of Hybrid Bonding Technology - Hybrid bonding technology is crucial for Tuojing Technology's development, meeting current demands and extending into future markets [7] - By 2026, successful validation from downstream customers and expanded demand in sectors such as SOIC, GPO, and smart glasses will enhance the company's growth potential [7] Additional Equipment Companies to Watch - Besides the core recommendations, smaller equipment companies like Jiao Cheng Ultrasonic and Jing Zhi Da are also worth monitoring. These companies may experience favorable order elasticity and exposure as HBM 0-1 enters industrialization in 2026 [8]