Storage sector booming! Biwin Storage and Longsys saw their performance double last year, two companies turned losses into profits, while Puya Semiconductor and Hymine Technology’s stock prices surged over 100% this year.

Source: Times Finance Author: Zhang Zhao

Driven by strong demand for AI computing power, the global memory chip market has seen a reversal in supply and demand dynamics, leading to rising prices and bringing the industry a long-awaited 'bumper year'.

According to statistics from Times Finance, as of January 31, a total of 20 A-share storage companies including Biwin Storage (688525.SH), Longsys (301308.SZ), Montage Technology (688008.SH), GigaDevice (603986.SH), Xiechuang Data (300857.SZ), Demingli (001309.SZ), Beijing Jianxin (300223.SZ), Shanghai Xinyang (300236.SZ), Allwinner Technology (300458.SZ), Fudan Microelectronics (688385.SH), Puya Semiconductor (688766.SH), Xingchen Technology (002436.SZ), Netac Technology (300042.SZ), and Wanrun Technology (002654.SZ) have released earnings forecasts for 2025. Among them, 14 companies are expected to turn a profit, with Biwin Storage and Longsys projected to grow over 100%, while Xingchen Technology and Netac Technology reversed losses into profits. However, six companies are still forecasted to incur losses.

Zhang Xiaorong, director of the DeepTech Research Institute, told Times Finance that the explosive growth in AI computing power demand is the core driver behind the current round of earnings growth for storage companies. Major international manufacturers have shifted production capacity towards high-end products like HBM, causing an industry-wide supply crunch and significant price increases across the board. Although A-share companies do not produce the most advanced wafers, they benefited significantly from the tight supply-demand situation due to international manufacturers vacating some market space. These companies profited through inventory revaluation at lower costs, product price hikes, and increased packaging and testing service fees within the industrial chain transmission process.

Source: Tuchong

Biwin Storage and Longsys's performance is expected to double.

According to Times Finance statistics, among the 14 storage companies that forecasted profits for last year, Biwin Storage showed the largest increase in net profit attributable to shareholders. Last year, its attributable net profit is expected to be between 850 million yuan and 1 billion yuan, increasing by 427.19% to 520.22% year-over-year.

In its 2025 earnings forecast, Biwin Storage stated that due to the impact of the global macroeconomic environment, memory prices began to decline quarter by quarter starting from the third quarter of 2024, reaching a cyclical low in the first quarter of 2025, with significant drops in product selling prices in the first quarter. Starting from the second quarter of 2025, as memory prices stabilized and rebounded, and key projects were gradually delivered, the company's sales revenue and gross margin gradually recovered, and operating performance progressively improved. In 2025, the company maintained a high growth trend in the AI emerging edge field and continued to strengthen its advanced packaging capabilities. The overall progress of the wafer-level advanced packaging and testing project was smooth, and sampling and verification work was currently being carried out according to customer requirements.

Subsequently, Longsys Electronics' net profit attributable to shareholders for last year is expected to be between 1.25 billion yuan and 1.55 billion yuan, representing a year-on-year increase of 150.66% to 210.82%.

Longsys Electronics stated in its 2025 earnings forecast that after memory prices bottomed out in the first quarter, they stabilized and rebounded. By the end of the third quarter, due to the explosive demand for AI servers and manufacturers shifting capacity towards enterprise-level products, supply further tightened, causing memory prices to continue rising. The company has achieved mass application of several controller chips and successfully completed the first tape-out of the UFS 4.1 controller chip. At the same time, customized edge-side AI storage products have been shipped in bulk to leading customers.

Notably, Demingli’s earnings growth for last year is also expected to be substantial, with net profit attributable to shareholders forecasted at 650 million to 800 million yuan, marking a year-on-year increase of 85.42% to 128.21%, ranking among the top three in terms of growth rate.

Demingli revealed in its 2025 earnings forecast that starting from the third quarter of 2025, driven by AI demand, the memory industry gradually recovered, memory prices entered an upward channel, and the company's product sales gross margin significantly increased, leading to a notable improvement in operating performance.

Source: Wind

Additionally, Montage Technology, GigaDevice, and Sharetronic Data all reported net profits attributable to shareholders exceeding 1 billion yuan last year, estimated at 2.15 billion to 2.35 billion yuan, approximately 1.61 billion yuan, and 1.05 billion to 1.25 billion yuan respectively, representing year-on-year growth of 52.29% to 66.46%, around 46%, and 51.78% to 80.69% respectively.

Montage Technology stated that benefiting from the AI industry trend and robust demand, the shipment volume of the company's interconnect chips significantly increased, driving a substantial year-on-year growth in the company's operating performance for 2025. GigaDevice disclosed that the acceleration of AI computing power construction boosted demand significantly, with products targeting PCs, servers, automotive electronics, and other fields deeply benefiting. Sharetronic Data mentioned that in terms of data storage equipment, the company continued to deepen its enterprise-level storage product layout and market expansion, driven by increased investment in storage infrastructure from downstream customers, resulting in increased shipments and achieving scale production.

Lin Meibing, Chief Analyst at Chip Insights ICTIME, told Times Finance that the investment boom in AI infrastructure has driven an explosion in demand for memory chips used in AI servers. Major memory chip manufacturers are prioritizing capacity allocation to high-end products such as HBM and DDR5 for AI applications, leading to shortages in the enterprise-level, automotive-grade, and consumer-grade memory chip markets. However, expanding memory chip production requires 18 to 24 months, so it is difficult to ease the situation in the short term, resulting in a price hike wave.

Moreover, memory chip manufacturers are transitioning their DDR4 platforms to DDR5 platforms, reducing or even halting production of DDR4, and reallocating capacity to higher-performance and higher-value products like DDR5, which has also led to shortages and price increases for DDR4. Lin Meibing added, 'This wave of price hikes is the result of a cyclical rebound combined with structural growth driven by new demands such as AI and computing power, making it stronger than before, with price increases exceeding most people's expectations. However, the current AI-driven demand surge carries the risk of a bubble burst, and how long it will last remains uncertain. Therefore, memory chip manufacturers are adopting a conservative approach toward production expansion.'

Xingchen Technology and Netac Technology are expected to reverse their losses and report profits.

Times Finance noted that among the 14 storage companies that forecasted profits last year, there were still two companies expected to turn losses into profits. Among them, XingSen Technology's performance is projected to make a significant turnaround from losses to profit, with its net profit attributable to shareholders expected to exceed 100 million yuan, forecasted to be between 132 million and 140 million yuan.

XingSen Technology primarily engages in traditional PCB business and semiconductor operations, including IC packaging substrates (CSP and FCBGA packaging substrates) and semiconductor test board services. In its mid-year report for 2025, XingSen Technology disclosed that its CSP packaging substrate business benefited from the recovery of the memory chip industry and increased market share from major memory clients. Capacity utilization rose quarter by quarter, leading to overall revenue growth at a faster pace.

Meanwhile, Longtech also expects its performance to reverse from loss to profit, with its net profit attributable to shareholders anticipated to range between 21 million and 31 million yuan.

In its 2025 earnings forecast, Longtech stated that as global AI server market demand for storage products rises, memory chip manufacturers have shifted capacity towards high-performance server storage products, causing an imbalance in supply and demand. Starting from the second quarter of 2025, prices of storage products surged significantly. The company made timely inventory preparations based on market conditions, and as prices rose, both revenue and gross margin gradually increased, improving operating performance.

Additionally, among the six storage companies forecasting losses last year, Dawei Co., Ltd., Tongyou Technology, Hengshuo Shares, and Zhongdian Xinlong are projected to significantly reduce their losses.

At the same time, Times Finance has observed that since the beginning of this year, the overall A-share storage sector has steadily risen, with many companies seeing substantial stock price increases.

Lin Meibing told Times Finance that currently, the capital market is focusing its primary investment emphasis on the AI industrial chain sector. As the storage segment is both a core part of the AI industrial chain and in an upward cycle, combined with restocking consumer electronics inventories, a significant supply-demand gap is expected in 2026 that will likely persist for three years without relief. This convergence of multiple hot concepts has driven surging performance in storage sector companies, attracting frenzied inflows of capital and retail investors and raising expectations for the storage sector.

Source: Wind

According to Wind, as of the close on January 30, the Memory Index had cumulatively risen by 28.71% since the beginning of the year, far surpassing the 1.65% increase of the CSI 300 Index. Among related concept stocks, 16 enterprises saw their stock prices rise by over 20% within the year. Notably, Puyan Shares and Hengshuo Shares' stock prices surged by more than 100%, reaching 140.55% and 103.74%, respectively. Following closely behind, Biwin Storage and Montage Technology performed well, with their stock prices rising 63.15% and 54.37%, respectively, within the year.

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