thewheelgameshow| The high-bandwidth memory market is in short supply

Liang Qiangang, a reporter from the Securities Times

Recently, SK Hynix CEO announced that its high-bandwidth memory capacity had been sold out in 2024 and 2025, and predicted a surge in demand for "ultra-high-speed, high-capacity, low-power" memory dedicated to artificial intelligence in the future.

Similarly, Micron disclosed in its financial results for the second quarter of fiscal 2024 that its 2024 high-bandwidth memory capacity had been sold out and most of its 2025 capacity had been allocated.

As an indispensable key component in the frontier fields such as high-performance computing, artificial intelligence and data center, the market demand for high-bandwidth memory is soaring at an unprecedented speed. According to Mordor Intelligence, the size of the high-bandwidth memory market is expected to increase from about 25% from 2024 to 2029.ThewheelgameshowUs $0.20 billion surged to US $7.95 billion, with a compound annual growth rate of 25.86 per cent over the forecast period. In order to capture this incremental market, Samsung, SK Hynix and other companies are allocating more capacity for high-bandwidth memory and promoting the specification iteration of high-bandwidth memory.

The price of high-bandwidth memory "skyrocketed" in 2023. In 2024, high-bandwidth memory is still "hot", driving the stock price of industrial chain companies to "rise."

According to market research firm Yole, the average price of high-bandwidth memory so far this year is five times that of ordinary dynamic random access memory (DRAM). Coupled with the recent sell-out of high-bandwidth memory capacity of SK Hynix and Meguiar, it is further confirmed.ThewheelgameshowThe market has a high degree of recognition and urgent demand for this technology.

According to the latest research from Jibang Consulting, the three original factories began to improve the projection of advanced processes. After the reversal of the contract price of memory, the company's capital investment began to increase, and the increase in production capacity will be concentrated in the second half of this year. Among them, high-bandwidth memory due to good profit performance, coupled with the continued growth in demand, so the production order is the highest priority. However, the yield is only about 50% to 60%, and the wafer area is more than 60% larger than that of DRAM products, that is, it accounts for a high proportion of film projection. In terms of TSV production capacity, high-bandwidth memory will account for 35 per cent of advanced processes by the end of this year.

According to Securities Times data Bao statistics, the A-share market involves the concept of high-bandwidth memory less than 20 stocks, as of May 21 closing, a total A-share market capitalization of 228.689 billion yuan. Since the beginning of this year, high-bandwidth memory stocks have underperformed the market, down 19.35% on average. Only Jacques Technology (002409) and Shannon Xinchuang rose against the trend, with increases of 9.46% and 4.35% respectively.

From the performance data, in the first quarter of this year, nearly half of the high-bandwidth memory concept stocks achieved year-on-year growth in net profit. Among them, the net profit of Xingsen Technology (002436) and Huahaicheng Branch doubled.

Huahai Chengke has said on the investor interactive platform that the company's granular epoxy plastic packaging material can be used for high-bandwidth memory packaging, the related products have been verified by customers and are now in the sample delivery stage. In the first quarter of this year, the company achieved a net profit of 12.7717 million yuan, an increase of 207.3% over the same period last year, mainly due to the gradual recovery of the market situation during the reporting period, the increase in orders, the increase in interest income from large certificates of deposit, and the policy of VAT plus deduction.

From the perspective of future growth potential, the performance of some high-bandwidth memory concept stocks has been favored by institutions.

According to Databao statistics, according to the consensus forecast of more than five institutions, seven are expected to have a net profit growth rate of more than 20% in 2024 and 2025, namely, Yishitong, Xingsen Technology, Jacques Technology, long Electric Technology (600584), Lianrui New Materials, Shengquan Group, and Shengmei Shanghai.

The average growth rate of net profit predicted by the organization was Yishitong, which reached 138.42%. Changjiang Securities (000783) said in the latest research report that Yishitong production schedule is expected to resume in the second quarter of this year, major customers are expected to land, unit price is expected to stabilize, with the increase in the rate of production and internal cost reduction gain is expected to usher in a profit inflection point. In addition, the company's new technology layout such as high-purity quartz sand and flame retardant foam is expected to achieve breakthrough progress this year; in the long run, new technology reserves such as solid oxides are expected to contribute to medium-and long-term increments.

In the above seven institutions forecast high-growth high-bandwidth memory concept stocks, compared with the May 21 closing price and the agency's consistent forecast target price, Shengmei Shanghai rose 61.66%, ranking first.

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