Baivei Storage announced that it is expected to achieve revenue of CNY 3.1 billion to CNY 3.7 billion in the first half of 2024, which is almost the same as the annual revenue of last year, with a year-on-year growth of 169.97% to 222.22%; Baivei Storage also indicated that the change in performance in the first half of the year was mainly due to industry recovery, and the company achieved breakthroughs in market and business growth.
On June 18, the storage leader Baiwei Storage in A-share achieved explosive growth in net income in the first half of the year.
Baiwei Storage announced tonight (June 18) that according to the preliminary calculations of the finance department, it is expected that the company's operating income in the first half of fiscal year 2024 will reach between 3.1 billion yuan and 3.7 billion yuan. Compared with the same period last year, the first half of revenue will increase by 1.952 billion yuan to 2.552 billion yuan, a year-on-year increase of 169.97% to 222.22%.
It is worth noting that Baiwei Storage's revenue in the first half of this year is almost equivalent to its total revenue last year. Its revenue in 2023 is about 3.591 billion yuan. At the same time, the first vesting period performance target of Baiwei Storage's restricted stock incentive plan for 2024 is a revenue of no less than 4.5 billion yuan. Calculated by this, the company has achieved about 70% of its annual performance target, and its latest total market value is 24.4 billion yuan.
In terms of net income, Baiwei Storage is expected to achieve a net profit attributable to the parent of 280 million yuan to 330 million yuan in the first half of this year, increasing by 576 million yuan to 626 million yuan compared with the same period last year, a year-on-year increase of 194.44% to 211.31%, successfully reversing from loss to profit; non-net profit was 275 million yuan to 325 million yuan, a year-on-year increase of 191.12% to 207.69%.
In addition, the share-based payment expenses of the company in the first half of the year were about 195 million yuan. The above forecast data are only the preliminary accounting results of the financial department of Baiwei Storage and have not been audited by accounting firms.
Baiwei Storage stated that the change in performance in the first half of the year was mainly due to the recovery of the industry and the significant growth of the company's business. "This year, the company has seized the opportunity of the industry's upward trend, vigorously expanded its first-line customers at home and abroad, and achieved breakthroughs in market and business growth, with a significant increase in product sales compared to the same period last year."
It is understood that Baiwei Storage's embedded storage products in the mobile phone field have entered well-known manufacturers such as OPPO, Shenzhen Transsion Holdings, Motorola, HMD, ZTE, and TCL. In May this year, when Baiwei Storage accepted institutional research, it said that from the first quarter situation, the demand for mobile phone customers has significantly revived, and the growth in demand in other fields has contributed to revenue growth.
In the field of smart wearables, Baiwei Storage's products have entered well-known smart device manufacturers such as Google, Xiaomi, Meta, and Xiaotiancai. Among them, the company provides ROM+RAM storage chip for Meta's latest AI smart glasses, Ray-Ban Meta.
In the automotive-grade market, Baiwei Storage has launched a variety of solution products, including automotive-grade eMMC, UFS, LPDDR and other different product forms, and is currently being imported by domestic leading automakers and Tier1 customers.
In the consumer market, on the one hand, Baiwei Storage operates its own brand, Biwin, and mainly sells it on online retail platforms such as JD.com and Douyin, and cooperates with distributors; on the other hand, it also has exclusive operation rights of authorized brands such as HP, Acer, and Predator, mainly on online platforms such as JD.com, Amazon, and offline channels such as Best Buy and Staples, developing PC retrofitting, esports and other markets.
As the memory manufacturers gradually resume production, the willingness to continue to raise prices in the second quarter of this year is strong. Baiwei Storage said that the situation in the third and fourth quarters of the second half of the year needs to be observed.
According to the latest estimation of TrendForce, the quarterly increase in DRAM contract price in the second quarter of this year will be raised to 13%-18%; the increase in NAND Flash contract price will be raised to about 15%-20%. As the storage market enters the traditional peak season in the third quarter, and with the strong recovery of HBM demand and the North American server market, the expected industry boom will continue.
Regarding R&D investment, Baiwei Storage stated that the company mainly continues to increase R&D investment in storage solution development, chip design, advanced packaging and testing equipment, and continuously strengthens its core competitiveness. R&D expenses for the first half of fiscal year 2024 are about 210 million yuan, a year-on-year increase of more than 170%.
Baiwei Storage's private placement plan has not yet been accepted by the exchange. According to the announcement issued by the company on April 30, the size of its private placement funding has shrunk from last year's 4.5 billion yuan to 1.9 billion yuan, which will be used for the construction of Huizhou Baiwei's advanced packaging and testing and memory manufacturing base expansion projects and wafer-level advanced packaging and testing manufacturing.
It is understood that wafer-level packaging technology is one of the key development directions in the current semiconductor technology field, and it is also an important foundation for the realization of HBM and Chiplet. It has certain application prospects in mobile intelligent terminals, high-performance computing and AI applications, and Internet of Things devices.
Baiwei Storage previously stated that its wafer-level advanced packaging project is a key industry project in the Greater Bay Area, covering wafer-level advanced packaging technologies such as WLCSP, 2.5D/3D, HBM, etc. At present, the project has entered the implementation stage and is preparing for equipment procurement and plant construction. The estimated monthly production capacity of the first phase of the project will reach 20,000 12-inch wafers, and subsequent expansion will be carried out according to the situation.