Up to 8,747% growth! Storage company's performance soars, multiple stocks receive funding attention (List)

Under the AI infrastructure-building wave, the financial performance of the related listed companies has also followed suit, “rising in tandem.”

Shannon Chip & Electronic’s first-quarter net profit surges by as much as 87 times

On the evening of April 7, Shannon Chip & Electronic released a first-quarter performance forecast. The company expects that in the first quarter of this year, its net profit attributable to shareholders will be RMB 1.14 billion to RMB 1.48 billion, up 6,714.72% to 8,747.18% year over year; non-recurring profit and loss net profit will be RMB 1.12B to RMB 1.46B, up 7,424.82% to 9,713.23%.

Shannon Chip & Electronic said that in the first quarter, the growth in demand for generative AI (AGI) applications drove the industry’s overall outlook upward. Enterprise-level storage products saw price increases, the company’s profitability improved, and its profit level rose sharply.

Shannon Chip & Electronic is a domestic leading semiconductor industry chain investment management and distribution platform. It is deeply tied to SK hynix, and has its HBM (high-bandwidth memory) distribution rights; it also holds agency qualifications for frontline brands such as MTK (MediaTek) and AMD. It is a direct beneficiary of the current storage cycle.

It is worth noting that Shannon Chip & Electronic’s sharply higher earnings growth is not a one-off case.

Deming Li’s first-quarter revenue is expected to increase by 483.05% to 522.98% year over year; net profit attributable to shareholders will be RMB 3.15 billion to RMB 3.65 billion, compared with a loss of RMB 69.0877 million in the same period last year. A-year We Storage expects that in the first two months, its net profit attributable to shareholders will be RMB 1.5 billion to RMB 1.8 billion, up sharply 921.77% to 1,086.13% year over year. Zhaoji Innovation expects net profit attributable to shareholders of RMB 1.65B in 2025, up 49.47%.

Overseas, on April 7, storage giant Samsung Electronics announced its earnings guidance. In the first quarter, its consolidated operating profit was about 57.2 trillion won, up 755% year over year, setting the highest year-over-year growth level in recent years; compared with 20.07 trillion won in the fourth quarter of 2025, it grew 185% quarter over quarter. Its profit scale achieved a rapid climb for two consecutive quarters.

The storage price-hike wave is still continuing

Driven by the global AI industry, demand for storage chips surged, and prices had been climbing rapidly. However, in recent times, spot prices have shown a slight pullback, even sparking talk of a “DRAM price crash.” In response, industry leader Samsung broke the market’s panic expectations with concrete actions.

According to media reports citing overseas sources, after memory product prices increased by an average of 100% year over year in the first quarter of 2026, Samsung has again announced major price adjustment measures. In the second quarter of 2026, the company’s average prices across its full range of memory products will rise by 30%. After two consecutive rounds of large-scale price hikes, the impact is far beyond market expectations.

Korean media ETNews said that Samsung Electronics has confirmed it completed price negotiations with major customers by end of March and successfully signed supply contracts.

Industry observers generally expect that as Samsung finalizes its price-hike plan, SK hynix and Micron, two other global memory giants, will also soon follow by raising product prices. If this trend materializes, it will completely break the long-running narrative that DRAM product prices would plunge, and will cause a major change in the market structure of storage chips.

According to TrendForce’s latest research on the memory industry, the strategy for major manufacturers to gradually exit production of products below mature DDR4 remains unchanged. With the market supply structure continuing to narrow, the overall prices over the past few months have already accumulated astonishing increases. TrendForce considered factors such as continuous supply reduction, order shifting, and the fact that capacity expansion by suppliers of mature process nodes has not kept up. It estimates that the ConsumerDRAM contract price in the second quarter of 2026 will continue to rise quarter over quarter by 45–50%.

（Source: TrendForce’s official WeChat account）

In a research report, Citic Securities noted that with AI demand driving it, storage is in the middle of the “super boom” cycle before its peak. The firm continues to like storage demand that may exceed expectations, and expects that the industry’s sustained supply shortage will continue through the end of 2027. It recommends focusing on storage module companies with strong short-term earnings explosion capabilities, and continues to recommend memory original-equipment manufacturers and design companies closely aligned with original equipment manufacturers.

Many concept stocks see funds rush in

The Orient Securities concept sector shows that in the current A-share market, about a hundred stocks are related to the storage chip concept. Their combined total market value exceeds RMB 4.3 trillion. SMIC is first with a market cap of RMB 765.1 billion. North Huachuang has a market cap of over RMB 300 billion. Seven stocks including Huan Hong Company, Ameisen Micro, and Zhaoji Innovation all have market caps between RMB 100 billion and RMB 200 billion.

From the start of the year to date, more than half of the concept stocks have recorded share-price gains. A-year We Storage has led with a surge of 89.41%. Purun Shares is also up 77.62%. Five stocks including Deming Li, Delong Laser, and Kexiang Shares have cumulative gains all exceeding 60%.

If the time window is narrowed to since February 28, there are 13 storage chip concept stocks that have achieved upward moves against the trend. Deming Li, A-year We Storage, and Westce Testing’s gains over the period were 47.91%, 31.13%, and 28.74%, respectively. Langke Technology, Shangluo Electronics, and Shenkeda all saw gains of more than 10%.

From the perspective of capital flows, since February 28, a total of 28 storage chip concept stocks have received net purchases of margin financing. A-year We Storage and Deming Li both saw leveraged capital add more than RMB 2 billion. Zhaoji Innovation and Huicheng Shares also saw net rush-in with margin financing exceeding RMB 300 million. Guanghe Technology, Jingzhida, Shennan Circuit, and Yiyatong all have net margin-financing purchases of more than RMB 100 million.

In an institutional research visit recently, A-year We Storage disclosed that its self-developed UFS controller research and development is progressing smoothly, and that its core performance indicators are excellent. The company plans to begin onboarding terminal customers in the second half of 2026, which will further strengthen its competitiveness in high-end storage markets such as AI smartphones, AI wearables, and AI smart driving.

At the performance briefing meeting held at the end of March, Shennan Circuit said that its packaging substrate business benefits from demand for substrate types used in storage and processor chip categories. Currently, the utilization rate of its plant capacity has continued at a relatively high level since the fourth quarter of 2025.

（Source: Orient Securities Research Center）