---
title: "Biwin: \"Monster Stocks\" under the Unique Valuation of A-shares"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/265891974.md"
description: "Biwin has entered a new cycle due to AI-driven demand for storage chips, with inventory reaching 5.695 billion yuan, an increase of 52%/30%. Global storage chip prices have risen due to tight capacity, leading to a revaluation of the company's inventory value. Despite the rise in stock prices, the lack of long-term scarcity in storage products and poor cost transmission among midstream companies may pose challenges in covering costs with selling prices"
datetime: "2025-11-14T10:17:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/265891974.md)
  - [en](https://longbridge.com/en/news/265891974.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/265891974.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/265891974.md) | [繁體中文](https://longbridge.com/zh-HK/news/265891974.md)


# Biwin: "Monster Stocks" under the Unique Valuation of A-shares

AI is driving DRAM and NAND into a new super cycle. Under this trend, the stock prices of many companies in the A-share market have taken off, with Biwin being one of them.

Biwin is a midstream module manufacturer in the industry, mainly engaged in the production, packaging, and sales of semiconductor memory. Its main products include embedded storage, PC storage, enterprise storage, and mobile storage, which can be widely applied in mobile smart terminals, PCs, data centers, smart cars, and other fields.

As of the end of the third quarter, the company's inventory reached 5.695 billion yuan, with a month-on-month increase of 52%/30%. In the price increase cycle driven by tight capacity in the global memory chip market, those with more reserves will benefit. A new industrial cycle in the storage chip industry driven by AI has led to a reassessment of the company's inventory value.

However, storage products do not have the long-term scarcity logic of gold becoming less as it is mined. Midstream companies do not have a smooth cost transmission mechanism like upstream companies. As the stock price trend seems almost straightforward, the disadvantage of module manufacturers like Biwin in the industrial chain will eventually become prominent again; the issue of prices not covering costs will inevitably resurface.

1.  Super Cycle

The continuous strong demand for AI computing power from global tech giants has led to a persistent shortage of HBM (High Bandwidth Memory), the main memory product for AI chip modules. HBM consumes more than three times the wafer capacity of standard DRAM (Dynamic Random Access Memory), and under the pressure of capacity, the production of DRAM and NAND Flash has been significantly compressed in a short period.

From the demand side, global smartphones and PCs are continuing to recover. In Q3 2025, global PC shipments increased by 8.1% year-on-year, with notebook shipments growing by 4% and desktop shipments by 17%. In the third quarter of 2025, smartphone shipments reached 323 million units, a year-on-year increase of 2.09%, up from 1.03% in Q1.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/a77cfb8357894ffe90d0292af38b4792.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Under the imbalance of supply and demand, the prices of related products have naturally risen rapidly. CFM data shows that in the first half of 2025, the comprehensive price index of DRAM increased by 47.7%, while the comprehensive price index of NAND Flash rose by 9.2%. Since October, the price of 512Gb Flash Wafer has cumulatively increased by more than 20%.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/c8f6b1fa50a64c85994c7478431318d5.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

More importantly, this state of supply and demand imbalance may be maintained in the medium to long term.

Compared to traditional DRAM products, HBM has a profit margin that is 20 percentage points higher. Driven by profit motives, it is unlikely that memory chip manufacturers like Samsung and SK Hynix will restore traditional DRAM production capacity TechInsights' October statistics show that the average inventory of DRAM in the third quarter has dropped to 8 weeks, down from 10 weeks in the same period last year and 31 weeks at the beginning of 2023, indicating a rapid tightening of market supply.

Biwin, as one of the leading independent semiconductor storage solution providers in China for the AI era, possesses full-stack technical capabilities in "main control chips x innovative storage solution design x advanced packaging and testing." Its main products are currently scarce semiconductor memory.

In the first half of this year, Biwin's overall performance was poor, mainly due to the impact of the global macroeconomic environment, with storage prices beginning to decline quarter by quarter starting in the third quarter of 2024, reaching a temporary low in the first quarter of 2025. The significant drop in the sales prices of the company's products lowered the profits for the entire first half of the year.

Entering the third quarter, performance began to improve significantly. During this period, revenue was CNY 2.663 billion, a year-on-year increase of 68.06%; net profit attributable to the parent company was CNY 256 million, a year-on-year increase of 563.77%; and net profit attributable to the parent company after deducting non-recurring gains and losses was CNY 213 million, a year-on-year increase of 457.26%, showing impressive growth.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/4c7b71e837644a568ccc323b86c77a9e.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

As of the end of the third quarter, Biwin's inventory reached CNY 5.695 billion, making it the third largest domestic module manufacturer in terms of inventory scale in the industry. After the industry enters a super cycle, this inventory will no longer be a burden but rather a driving force for market value enhancement, which is rare in an industry with a high proportion of depreciation and amortization.

In the current market environment where demand and prices are continuously rising, the entire industrial chain will benefit, resulting in the stock prices of seven companies, including Biwin, doubling.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/1e67890f5a5441449ce4a3938b8ebaba.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Compared to wafer foundries that have benefited from the price increase trend from the beginning, storage module companies have a performance characteristic of "cost front-loading," which is a key factor for the market to trade their subsequent performance elasticity.

II. Cost Front-Loading

As of the first half of this year, Biwin's gross profit margin has still significantly declined year-on-year, diverging from the market price trend during the same period.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/f8ba7ac9d6004213a3ab0b65d4493e2a.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Source: Company prospectus

This is because the company's main product lines are primarily SSDs (solid-state drives) and embedded storage chips, which are not the mainstream products for the current AI demand. More importantly, from a business model perspective, Biwin operates on a Fabless model, meaning it does not manufacture storage chips independently but processes, assembles, and tests them into complete products for sale ![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/80b6d40819ad4306949ae5630baeede1.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Source: Company prospectus

This business model has led the company to be the first to be affected by the rising prices of upstream wafers, but under the weak recovery of the global consumer electronics market, it has been unable to timely pass on costs to the end users, resulting in significant cost prepositioning. From the perspective of the industry chain, the upstream of storage chips is the cornerstone of the industry chain, with extremely high technical barriers and greater bargaining power. This translates to the company level, where Biwin Storage has long been highly dependent on five major suppliers, even more so than on downstream customers.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/7ddb69fe1e3a47e6a2402e14376ba498.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/448d7ca758474255971e48e43363bc2a.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

A high concentration of suppliers means that upstream manufacturers hold core pricing power and resource allocation rights, while midstream module manufacturers are in a position of "passively accepting" with weak bargaining power. In contrast, companies like Seagate and Western Digital, which have their own wafer fabs and primarily serve cloud service providers, have seen their gross margins continuously improve since the first quarter of this year.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/fe414b92865f4131911986e592c193be.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The lower position in the industry chain and the mainstream products in the non-AI market have caused Biwin Storage's performance to lag. However, in the latest quarter, the company's performance has shown a significant rebound. In Q3 this year, Biwin Storage's revenue was 2.663 billion yuan, a year-on-year increase of 68% and a quarter-on-quarter increase of 12%; net profit attributable to the parent company was 256 million yuan, an increase of 300 million yuan year-on-year and an increase of 300 million yuan quarter-on-quarter. The gross margin was 21%, up 5 percentage points year-on-year and 7 percentage points quarter-on-quarter; the net profit margin was 9%, up 13 percentage points year-on-year and 11 percentage points quarter-on-quarter.

Moreover, benefiting from AI demand and the global shortage of storage chip capacity, the inventory impairment provisions that the company had previously made have all been reversed, and the value of the inventory in hand has begun to rise, even becoming more valuable than before.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/ffc3bd4d9ae049b0909617ec949452ee.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Source: Company 2025 semi-annual report

This is because, with the explosion of AI infrastructure, the traditional Nearline HDD (nearline hard disk), which serves as the cornerstone for massive data storage, has begun to experience supply shortages, prompting high-performance, high-cost SSDs to gradually become the market focus and the mainstream alternative to enterprise-level HDDs At this point, the transmission sequence of the current round of price increases for storage chips has become clear: HBM → DRAM → NAND Flash. For storage module manufacturers, although the cost upfront has made the performance in the first half of the year difficult to look at, under the rapid expansion of the AI arms race, the trend of price increases will spread throughout the industry. The lag in cost changes behind selling prices also indicates the possibility of companies' profits reaching a new level.

However, SSDs are merely a temporary substitute, and the difficulty of expanding production is not high. The sustainability of storage module manufacturers' stock prices may even be lower than that of gold jewelry stocks during this golden cycle.

1.  Timely Profit Taking

The accelerated consumption of SSDs in inference makes it reasonable for their demand to grow 3-5 times a year, especially with the potential explosive growth of large-capacity QLC SSD shipments expected in 2026. Nevertheless, even so, the price increase of NAND Flash remains the lowest in the industry.

According to TrendForce data, it is estimated that the price of general DRAM will increase by 8% to 13% in the fourth quarter of 2025 compared to the previous quarter, and if HBM is included, the increase will reach 13% to 18%; it is estimated that the average contract price increase for various NAND Flash products in the fourth quarter will reach 5% to 10%.

The difficulty of expanding production for these low-end products is not high, and domestic wafer fabs are fully capable of production. Under the drive of interests and domestic substitution, domestic wafer fabs do not even have strict requirements to control production capacity, and the logic of capacity tightness is lower than that of DRAM.

For example, as an important player in the global NAND Flash and SSD fields, Kioxia, with a market share of nearly 18%, plans to expand its production capacity to about twice that of 2024 by 2029. Yangtze Memory Technologies also plans to increase its monthly production capacity from 130,000 wafers in 2025 to 150,000 wafers, aiming to raise its global market share from 8% to 15% by 2026.

With major global players actively expanding production, market forecasts indicate that the supply gap for this segment will narrow by the second half of next year, and supply and demand will balance by 2027. The ability of NAND Flash to continue to increase in price is clearly limited. Moreover, in terms of cost-effectiveness, the price of QLC SSDs is several times that of HDDs. In the long run, HDDs remain a more cost-effective choice, and the long-term logic of SSDs is increasingly questionable.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/e85f332dd1bb40ca85d20ffef122ffbc.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Source: Doubao

Returning to the corporate level, the elasticity of Biwin's performance still relies on inventory revaluation rather than healthy growth driven by actual sales. In Q3 of this year, the company's operating cash flow remained negative, with the net outflow widening quarter-on-quarter.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/4d4bf48c4b8f49b4b1b1cdc40564473b.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) From the application scenario perspective, Biwin's products are primarily focused not on data centers, but rather on AI smartphones, AI PCs, AI glasses, and other end-side applications. Its clients include Meta, Google, Xiaomi, OPPO, vivo, Honor, Transsion, TCL, HP, Lenovo, ASUS, and others.

It can be seen that the company is still heavily reliant on consumer market demand, which is far more price-sensitive than the enterprise market. Currently, the company's inventory accounts for 43.17% of its assets, and if it cannot effectively pass on costs to downstream, a performance reversal is not out of the question.

As of the end of August, the company had short-term borrowings of 4.577 billion yuan and cash and cash equivalents of 1.715 billion yuan, indicating liquidity risks. Additionally, with a debt-to-asset ratio of 64.18%, the company faces significant repayment pressure. The tight funding situation has also prompted Biwin to seek a dual listing to increase financing channels. On October 28, 2025, the company submitted its prospectus to the Hong Kong Stock Exchange, intending to list on the main board in Hong Kong.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/c1d76410834542f9bf2f4dbbf56d933c.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/3ea9cb29a2304899b078883154cab396.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

From a valuation perspective, domestic major storage module manufacturers' PE ratios have significantly outpaced those of authentic wafer manufacturing companies in the U.S. The unique valuation system of the A-share market is unparalleled globally. However, it remains uncertain whether the market will still recognize this in the Hong Kong stock market.

![Image](https://imageproxy.pbkrs.com/https://cdn-img.capwhale.com/kmc/ueditor/20251114/cbc1732d6eb040a5986f1939a69c2cb8.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

This super cycle may last longer and be more elastic than traditional upward cycles, but any changes in supply and demand within an industry chain will ultimately reflect on consumer-grade products. If consumers do not respond positively, the industry may face a longer downturn and deeper stock price corrections.

Conclusion

From the perspective of industry chain positioning, it is unreasonable for domestic fabless model module manufacturers to have valuations higher than authentic wafer manufacturing companies in the U.S. Under the unique valuation system of the A-share market, timely profit-taking may be the investment principle to cope with this round of investment targeting storage module companies

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