Biwin Storage Technology (688525) 光大证券·2024-03-05 16:00Investment Rating - The report gives an "Accumulate" rating for the company, indicating a positive outlook for future performance [72]. Core Insights - The company, Bawei Storage, is expected to see a significant recovery in 2024, with a projected revenue increase of 66.3% in the global storage market, the highest growth rate among semiconductor sectors [72]. - The company has established a comprehensive business model focusing on embedded storage, consumer storage, industrial storage, and advanced packaging services, which positions it well for future growth [100][138]. - The company’s embedded storage revenue for 2022 was 2.177 billion RMB, with expectations to grow to 2.695 billion, 5 billion, and 7.15 billion RMB from 2023 to 2025 [72]. Summary by Sections 1. Company Overview - Bawei Storage primarily engages in the research, design, packaging, testing, production, and sales of semiconductor storage devices, with a focus on embedded storage, consumer storage, industrial storage, and advanced packaging services [100][138]. - The company has a strong competitive edge in technology research, supply chain management, and operational management, supported by long-term partnerships with major manufacturers [125][49]. 2. Industry Analysis - The global storage market is projected to decline by 37% in 2023, but a recovery is anticipated in 2024, with significant price increases expected for DRAM and NAND Flash products [11][72]. - Gartner forecasts a 66.3% year-on-year growth in the global storage market for 2024, indicating a strong rebound in demand [72]. 3. Financial Performance - The company reported a revenue of 3.618 billion RMB in 2023, with a net profit of -588 million RMB, but expects a turnaround with a projected revenue of 6.27 billion RMB in 2024 [72]. - The report predicts a recovery in profitability, with net profits expected to reach 266 million RMB in 2024 and 411 million RMB in 2025 [72]. 4. Business Segments - Embedded storage products include ePOP, eMCP, eMMC, UFS, BGA SSD, and LPDDR, which are widely used in mobile devices, tablets, and IoT applications [138][61]. - Consumer storage products encompass solid-state drives and memory modules, with a focus on high performance and quality, targeting both B2B and B2C markets [72][138]. - Industrial storage products are expanding into automotive applications, with revenue expectations to grow from 96 million RMB in 2022 to 193 million RMB by 2025 [72]. 5. Future Outlook - The company is set to benefit from the anticipated recovery in the storage industry, with a focus on innovation and product development to meet evolving market demands [72][138]. - The stock incentive plan reflects management's confidence in achieving revenue targets of at least 5 billion RMB in 2024 [72].