According to Securities Star News, on December 13, 2024, BIWIN Storage (688525) announced that the company would accept institutional research on December 12, 2024.

The details are as follows:

Q: How did the company seize the opportunity of the recovery of the storage industry and achieve a breakthrough in market and business growth?

Answer: The company will grasp the industry opportunities with greater determination and action, achieve a historic breakthrough in revenue and profit, and strive to expand customer coverage in the fields of mobile phones, PCs, servers, etc., expand revenue, and strive to break through first-line customers; Invest strategic resources in the field of smart wearables and industrial vehicle regulations, and strive to become a major player in the market. The company will continue to deepen the integrated layout of R&D, packaging and testing, focus on strengthening the capacity building of chip design, advanced packaging and testing and testing equipment, and strive to become an innovator in the global storage and advanced packaging and testing industry. At the same time, the company will actively explore innovative fields such as new interfaces, new media, and integrated storage and computing, and strive to contribute industrial value in the I era.

Q: What is BIWIN's future development strategy? How are companies responding to industry challenges and market changes?

Answer: At present, the industry is in a period of opportunity to break through first-line customers and mainstream applications, the industry competition barriers have been greatly improved, the scale effect and technical advantage barriers of leading enterprises will be further strengthened, and the industry concentration is expected to be further improved. The company has first-mover advantages in brand, technology, R&D, packaging and testing integration construction and capital, and will firmly grasp the future industrial development trend and continue to build brand, scale and technical barriers. In terms of competitive strategy, the company will continue to consolidate and enhance the competitive advantage of the integrated layout of R&D, packaging and testing. The company is the earliest enterprise in the industry to integrate R&D, packaging and testing, and has built its own packaging and testing capabilities since 2010, with more than ten years of accumulation and precipitation, and its technical capabilities for storage packaging and testing have reached the domestic leading and international first-class level; On the basis of the existing technology, the company further lays out wafer-level advanced packaging and testing capabilities, and continuously improves technical barriers; In addition, the company is also the first company in the industry to develop self-developed storage solutions for master control, and has competitive advantages in terms of master control performance and localization. In terms of market, the company has a good customer base in the field of mobile phones, PCs and wearables, and will continue to expand customer coverage in the future, expand revenue, and strive to expand more first-line customers.

Q3 Could you please introduce the market prospect of your company's SSD hard disk and the approximate proportion of the company's business? In the annual report, whether the business is attributable to PC storage.

Answer: In the field of embedded storage, the company's BG SSD has passed the certification of Google's access supplier list, and has a wide range of application prospects in the fields of I mobile terminals, cloud phones, high-performance ultra-thin notebooks, drones, and smart cars. In the field of PC storage, the company's SSD products have entered Lenovo, cer, HP, Tongfang and other well-known PC manufacturers at home and abroad, the company is the main supplier of SSD products in the domestic PC field, occupying a dominant share; In the field of industrial and vehicle specification storage, the company has launched SSD products such as ST SSD and PCIe SSD to meet the different needs and scenarios of industrial and vehicle specification customers. In the field of enterprise-level storage, the company has launched enterprise-class ST SSD, enterprise-class PCIe SSD and other products, which are mainly used in data centers, general-purpose servers, I/ML servers, cloud computing, big data and other scenarios. In the field of mobile storage, the company has launched mobile solid-state drives, which are mainly used in the field of consumer electronics, with the characteristics of high performance, high quality, and innovative product design.

Q: Does your company consider the interests of investors and set pressure on the stock price

Answer: The company's current operating conditions are good, and the stock price fluctuations are mainly affected by the market and industry environment, and there is no behavior of the company deliberately lowering the stock price for the fixed increase. The company will continue to create long-term value for shareholders through sound operation and transparent information disclosure.

Q: The company has established cooperative relations with major AI mobile phone manufacturers such as OPPO and Transsion, and launched embedded storage products for AI mobile phones. Please, what is the company's strategy in terms of customer outreach and cooperation

Answer: With the vigorous development of I, domestic and foreign customers have put forward higher requirements for the competitiveness of memory products, the company will continue to enhance the international competitiveness of products through continuous R&D investment and manufacturing capacity improvement, meet the needs of mainstream domestic and foreign customers, and enhance the company's customer coverage and business scale. In terms of market expansion, the company will deeply cultivate the domestic storage market, grasp the major opportunities of localization, and continuously improve the company's share and brand influence in the global market by actively building a brand matrix and a three-dimensional sales/production and delivery network with global distribution, with excellent product competitiveness and the best localization services.

Q: In the first three quarters of 2024, the company's gross margin and net profit margin have changed. Please, what do these changes reflect about the company's business strategy?

A: In the first three quarters of 2024, the company firmly grasped the upward opportunities of the industry, vigorously expanded first-line customers at home and abroad, achieved a breakthrough in market and business growth, and significantly increased product sales and sales revenue year-on-year. The company will continue to uphold the development strategy based on China and facing the world, adhere to the global strategic layout while deeply cultivating the domestic market, actively practice the development path of internal and external dual circulation, continue to optimize the business structure, and improve the global market share and profitability.

Q: Since the third quarter of 2024, the price of storage products has decreased. Please, how does this affect the company's business and profits?

Answer: The company's gross profit margin changes are comprehensively affected by factors such as product structure, upstream raw material supply, storage market demand fluctuations, and changes in market competition pattern. With the update of the inventory structure, the company's gross profit margin will gradually return to the central level. In the long run, the localization rate of the storage market is low, and the improvement of the localization rate provides a broad space for the company's revenue growth. The company continues to strengthen R&D investment, the development of new products and the improvement of technical capabilities to further promote the growth of the company's revenue and profit, and the global layout and its own brand building will also enhance the company's long-term revenue and profitability.

Q: What is the financial health of the company? Including cash flow position, debt position, inventory position, etc.

Answer: In the first three quarters of 2024, the company's net cash flow from operating activities was 495.2639 million yuan, mainly due to the company's vigorous development of first-tier customers at home and abroad, and the significant increase in sales volume and sales. As of September 30, 2024, the company's total liabilities were 4951.0458 million yuan, and the inventory was 3741.4506 million yuan.

Q: The company has significantly increased its R&D investment in 2024. Please, what are the main areas of these R&D investments? What are the implications for the long-term development of the company?

Answer: Focusing on the semiconductor storage industry chain, the company continues to increase investment in technology research and development in the fields of chip design, storage media characteristics research, firmware/software/hardware development, storage test equipment and algorithm development, and continues to build storage packaging and testing capacity to meet business growth needs and evolve to the field of wafer-level packaging and testing, further enhance the company's core competitiveness, and extend the company's value chain.

Q: Industry inventory is mainly in the middle and lower reaches. Please, how does the company respond to changes in the industry's inventory level?

Answer: Since 02024, the company has adopted a more neutral stocking strategy, based on sales and purchases, and the company's inventory level is relatively stable as a whole. In the future, the company will continue to optimize the level of inventory management and improve the inventory turnover rate.

Q: The restricted shares will be lifted immediately, how much is the company ready to reduce its holdings?

Answer: 1. Please pay attention to the relevant announcements disclosed by the company.

Q: When is the expected approval of the fixed increase?

Answer: 2. The company's private placement is progressing normally, and the follow-up progress should pay attention to the relevant announcements disclosed by the company.

Q: BIWIN Storage's revenue and net profit in 2024 have achieved significant growth. Please, what are the main drivers behind this growth?

Answer: In the first three quarters of 2024, the company firmly grasped the upward opportunities of the industry, vigorously expanded first-line customers at home and abroad, achieved a breakthrough in market and business growth, product sales increased significantly year-on-year, and the company's total operating income increased by 136.76% year-on-year; At the same time, product prices rose year-on-year, and the company's comprehensive gross profit margin in the first three quarters increased by 25.99 percentage points year-on-year.

Q: BIWIN Storage has made breakthroughs in the fields of embedded storage, industrial and vehicle specification storage, PC storage and advanced packaging and testing services. Please, what is the company's specific business layout and development strategy in these areas?

Answer: 4. The company's business layout in various fields is as follows: In the field of mobile phones, the company's embedded storage products have entered well-known customers such as OPPO, Transsion Holdings, Motorola, HMD, ZTE, TCL, etc.; In the field of PC, the company's SSD products have entered Lenovo, cer, HP, Tongfang and other well-known PC manufacturers at home and abroad; In the field of domestic PCs, the company is the main supplier of SSD products, occupying a dominant share; In the field of smart wearables, the company's products have entered Google, Xiaomi, Meta, Xiaotiancai and other internationally renowned smart wearable manufacturers; In the enterprise-level field, the company has established a Beijing subsidiary to focus on the R&D and sales of enterprise-level storage, providing industry customers with complete and leading enterprise-level PCIe/ST SSD, RDIMM, CXL DRM storage solutions; In the field of vehicle specification, the company's products have been mass-produced by domestic leading car companies and Tier1 customers. In terms of development strategy, the company will focus on expanding customer coverage in the fields of mobile phones, PCs, servers, etc., expand revenue, and strive to break through first-line customers; Invest strategic resources in the field of smart wearables and industrial vehicle regulations, and strive to become a major player in the market.

BIWIN Storage 688525's main business: R&D, design, packaging and testing, production and sales of semiconductor memory.

BIWIN's third quarter report for 2024 shows that the company's main revenue was 5.025 billion yuan, an increase of 136.76% year-on-year; the net profit attributable to the parent company was 228 million yuan, an increase of 147.13% year-on-year; deducted non-net profit of 225 million yuan, an increase of 146.07% year-on-year; In the third quarter of 2024, the company's single-quarter main revenue was 1.584 billion yuan, a year-on-year increase of 62.64%; The net profit attributable to the parent company in a single quarter was -55.2445 million yuan, an increase of 70.54% year-on-year; Non-net profit deducted in a single quarter was -59.7057 million yuan, an increase of 67.82% year-on-year; The debt ratio was 66.78%, the investment income was -6.2971 million yuan, the financial expenses were 108 million yuan, and the gross profit margin was 22.51%.

A total of 5 institutions have rated the stock in the last 90 days, 3 have given a buy rating and 2 have an overweight rating.

Here's the detailed earnings forecast information: