Biwin Storage Technology (688525) 山西证券·2025-05-14 04:25Investment Rating - The report maintains an "Accumulate-A" rating for the company [1][8] Core Views - The company's revenue for 2024 reached 6.695 billion yuan, a year-on-year increase of 86.46%, while the net profit attributable to shareholders was 161 million yuan, up 125.82% year-on-year. However, in Q1 2025, the company reported a revenue of 1.543 billion yuan, a decline of 10.62% year-on-year, and a net loss of 197 million yuan, a decrease of 217.87% year-on-year [2][4] - The decline in Q1 2025 performance is attributed to lower-than-expected demand in H2 2024 and a drop in storage prices, compounded by a high base effect from Q1 2024. However, since March 2025, storage prices have shown a clear upward trend due to proactive production cuts by manufacturers and a balanced supply-demand situation driven by AI demand [4][5] - The company is actively expanding its AI edge products, leveraging self-developed main control chips, firmware algorithms, and advanced packaging capabilities to create differentiated competitive advantages. The rapid growth in AI edge products is expected to continue, particularly with the anticipated increase in AI glasses production [5][6] Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 6.695 billion yuan, with a year-on-year growth of 86.46%. The net profit attributable to shareholders was 161 million yuan, reflecting a growth of 125.82% year-on-year. For Q1 2025, the revenue was 1.543 billion yuan, down 10.62% year-on-year, and the net profit was -197 million yuan, a decline of 217.87% year-on-year [2][4][10] Market Trends - The report highlights a new cycle of storage price increases alongside accelerated demand for AI edge products. The company is expected to benefit from this trend, with Q1 2025 potentially marking the bottom of its performance [4][5] Product Development - The company has launched various high-performance storage products for AI applications, including UFS, LPDDR5/5X, and ePOP series products, which have been adopted by major brands in the smart wearable sector. The revenue from emerging AI edge sectors is projected to exceed 1 billion yuan in 2024, representing a year-on-year growth of approximately 294% [5][6] Future Outlook - The company anticipates that its wafer-level advanced packaging project will commence production in H2 2025, enabling it to offer comprehensive storage and advanced packaging solutions, which are expected to significantly enhance its value proposition [6][7][8]