Industry News:
Against the backdrop of the continuous expansion and reduction of production of head memory chips such as Samsung, SK hynix and Micron, NAND Flash Wafer** rose by more than 25% in November. According to TrendForce*** at the end of the third quarter, the contract price negotiation direction of NAND Flash has been moving towards a stop decline or even a price increase, which led to a 3% quarter-on-quarter increase in NAND Flash shipments in the third quarter, and the overall consolidated revenue reached 92US$2.9 billion, an increase of about 29%。Looking forward to the fourth quarter, NAND Flash products will increase in volume and price, and it is estimated that the average sales unit price of all products will increase by 13%, and the overall NAND Flash industry revenue growth rate is expected to exceed 20%. In the second half of this year, Mobile DRAM and NAND Flash (eMMC, UFS) are not only driven by the traditional peak season, but also Huawei Mate 60 series is also expected to stimulate other Chinese mobile phone brands to expand their production targets, and demand will pour in in a short period of time, driving the fourth quarter contract**.
Investment Views: Pay attention to the investment opportunities of local storage manufacturers. Under the superimposed influence of factors such as uncertain market demand, high inventory, and general performance losses, major IDM manufacturers have introduced measures such as reducing output, reducing investment, and slowing down technology upgrades to adjust the relationship between supply and demand and alleviate the downward trend. In terms of production capacity, according to TrendForce, the three major IDM factories have all started to reduce production, and the utilization rates of Samsung, Micron, and SK hynix in the second quarter of 2023 have generally been revised downward quarter-on-quarter. As overseas manufacturers gradually withdraw from niche markets, domestic manufacturers usher in development opportunities, and manufacturers in Chinese mainland and Taiwan gradually occupy the main share of the niche storage market. In recent years, local manufacturers have continued to increase R&D investment, and their competitiveness has been continuously enhanced.
The theme direction and subject of the research report shared are intended to sort out the direction of stock selection for you, you can add your own attention, but it does not constitute investment advice, not as a basis for trading, you should refer to it based on the principle of prudence, if you operate accordingly, you shall bear your own risk!”
Reference: Haitong** 2023-12-28 Storage: nandflash**Continuous**.
This article was written by Investment Consultant: He Wei - a1290622100002.