[Dongwu Media Overseas Zhang Liangwei Team] Storage Industry Tracker: Sentiment Pullback Provides Valuation Recovery Space, Supply-Demand Structure and HBM Capacity Crowding Support Cycle Resilience

English summary

Recently, the storage sector has experienced periodic pullbacks due to market macro sentiment fluctuations and short-term capital adjustments. From a fundamental perspective, demand for HBM from AI servers maintains steady growth, traditional consumer electronics inventory destocking is nearing its end, and the overall industry supply-demand structure has not substantially deteriorated. Upstream major storage manufacturers have steady supply growth, mainstay storage product contract prices continue to rise steadily on a QoQ basis, and under high operating leverage, gross margins and net profit levels of major industry players are steadily improving. Current sector stock prices have fully reflected market cautious expectations. It is recommended to pay attention to valuation recovery and rebound opportunities after sentiment calms down. Related targets: 1) SK Hynix 2) Micron 3) Samsung Electronics 4) Sandisk 5) 2x Long Hynix (7709.HK) 6) 2x Long Sandisk (SNXX) 7) 2x Long Samsung Electronics (7747.HK) 8) Western Digital...