Summary of Sandisk Corp (SNDK.O) Conference Call Company Overview - Company: Sandisk Corp (SNDK.O) - Market Cap: $88,443 million [4] Industry Insights - Industry: NAND Flash Memory - Key Driver: AI-driven demand is significantly influencing NAND market growth, particularly in data centers and enterprise applications [1][2] - Supply Constraints: The company anticipates continued supply constraints, leading to high-teens percentage bit growth in CY26 [2][3] Financial Performance - Recent Earnings: Kioxia reported revenue of ¥543.60 billion, exceeding guidance of ¥500-550 billion and FactSet's estimate of ¥540.95 billion [1] - Non-GAAP Operating Profit: ¥144.70 billion, compared to guidance of ¥100-140 billion, slightly missing FactSet's estimate of ¥146.99 billion [1] - 4Q Guidance: Revenue expected between ¥845-935 billion, significantly above FactSet's estimate of ¥648.23 billion; Non-GAAP operating profit guidance of ¥440-530 billion also exceeds expectations [1] Market Outlook - Demand vs. Supply: The company maintains that demand will exceed supply due to robust data center demand, with a cautious stance on capital expenditures [2] - Pricing Environment: The favorable supply-demand environment is expected to persist through CY26, supporting pricing stability [2] Investment Recommendation - Rating: Maintain Buy - Target Price: $750, indicating an expected share price return of 25.1% [4] - Valuation Metrics: Target price based on 10-11x FY27 EPS, compared to peers trading at 9-10x P/E [6] Risks - Downside Risks: 1. Delays in increasing market share in the enterprise segment [7] 2. Deterioration of the macro environment affecting data center spending and AI-PC uptake [7] 3. Supply-demand imbalances leading to pricing volatility [7] Additional Considerations - Quantitative Risk Rating: Sandisk is not rated as high risk due to its established market presence and brand reputation [8] - Peer Comparison: Sandisk does not have DRAM exposure, unlike most peers, which may provide a competitive advantage [6] This summary encapsulates the key points from the conference call, highlighting Sandisk's market position, financial performance, and outlook within the NAND industry.
闪迪：铠侠业绩解读-维持 2026 财年 AI 驱动需求下高 teens（15%-19%）的 EBITDA 增速预期，供应持续紧张，重申买入评级，目标价 750TP