Biwin Storage Technology Co.,Ltd. saw its stock price surge for the third consecutive day on March 6, following an earnings forecast, with a gain exceeding 9.31%. However, its market capitalization still has not broken through the 100 billion yuan threshold.
After projecting a more than tenfold increase in its non-GAAP net profit for 2025, Biwin Storage recently announced that its net profit for the first two months of 2026 is estimated to reach between 1.5 billion and 1.8 billion yuan, equivalent to roughly double the profit for the entire previous year. Amid an AI computing boom igniting a "super cycle" in the storage industry, this leading domestic storage company is racing forward at an unprecedented pace.
Over the past three trading days, Biwin Storage's stock has accumulated a gain of 42.73%. Its latest closing price surpassed 209 yuan per share, driving its total market capitalization to a historic peak of 97.8 billion yuan. Measured from its IPO price of 13.99 yuan on the STAR Market on December 30, 2022, the stock has appreciated fifteen-fold in just over three years.
Behind this capital market feast, the wealth of the Sun family is also expanding rapidly. Based on the latest market valuation, the family's stake in the listed company is worth over 22.3 billion yuan. Yet, amidst the euphoria, questions arise: Is a 100 billion yuan market cap the final destination or a new starting point? How substantial is this high growth, and what underlying risks might be concealed?
Founded in September 2010, Biwin Storage focuses its core operations on the storage chip industry chain. Its product portfolio includes solid-state drives (SSDs), embedded storage, mobile storage, and chip packaging and testing, giving it a complete industrial layout from chip packaging to end products. According to research from Frost & Sullivan, Biwin Storage is the world's only independent storage solutions provider with wafer-level packaging capabilities. The company has established advanced packaging and testing bases in Huizhou and Hangzhou, possessing capabilities for wafer-level chip scale packaging (WLCSP), system-in-package (SiP), and pilot production for mid-process HBM technology.
In 2024, revenue from Biwin Storage's AI emerging edge device business reached 1 billion yuan, a staggering year-on-year increase of 294%, ranking first globally among storage solution providers. The company is a core supplier in China for Meta, providing ROM+RAM memory chips for its Ray-Ban smart glasses. It also serves leading AI glasses manufacturers like Google, Xiaomi, Rokid, and Thunderbird Innovation, holding a leading position in the industry.
The surge in Biwin Storage's performance and stock price is closely tied to the storage industry's super cycle. Over the past two decades, the storage chip sector has experienced six complete bull and bear cycles. Since 2016, the storage industry has undergone approximately three cycles, each lasting about 3 to 4 years. The current cycle began in 2024. Unlike previous cycles driven by consumer demand, this one is fueled by new demand surging from AI-related capital expenditures.
"Demand for AI servers from major domestic and international manufacturers has increased shipments of storage chips. Furthermore, high-performance AI servers require next-generation memory chips like DDR5 and HBM to unleash the full potential of computing chips. The incremental demand driven by AI, especially starting from the second half of 2025, has completely exceeded expectations," commented a senior industry insider.
According to statistics from Sinolink Securities, driven by robust AI demand, storage chip prices soared in 2025, with the price of DDR4 16Gb even skyrocketing by 1800%. So far in 2026, the global storage chip market remains characterized by supply falling short of demand, sustaining continuous price increases. Sinolink Securities estimates that contract prices for storage are expected to continue climbing in the first quarter of this year, with potential increases of 30% to 40%. Specifically, DDR5 RDIMM memory prices are projected to rise by over 40%, NAND flash memory prices are expected to see double-digit percentage increases, and enterprise SSD prices are forecast to climb by 20% to 30%.
Biwin Storage stated plainly in its announcement, "The storage industry is experiencing a highly prosperous cycle in 2026. AI computing power and domestic substitution are driving continuous price increases for DRAM/NAND. The industry is facing supply shortages, from which the company benefits significantly." The company's announcement shows it expects revenue for January-February 2026 to reach 4.0 to 4.5 billion yuan, a year-on-year increase of 340% to 395%. Net profit attributable to shareholders is projected to be 1.5 to 1.8 billion yuan, a dramatic turnaround from a loss of 183 million yuan in the same period last year, representing growth of 921.77% to 1086.13%.
This is not an isolated data spike. According to Biwin Storage's previously released 2025 performance快报, full-year revenue reached 11.296 billion yuan, up 68.72% year-on-year, while net profit attributable to shareholders was 867 million yuan, an increase of 437.56%. Breaking down the performance by quarter reveals a clear acceleration trend: revenue in the fourth quarter alone surged to 4.721 billion yuan, with net profit hitting 837 million yuan. The median net profit for just the first two months of this year, 1.65 billion yuan, is already close to double the profit for the entire previous year.
The explosive performance directly ignited the stock price. After hitting the daily limit-up on March 4, Biwin Storage's intraday price reached a high of 205.62 yuan on March 6, bringing its total market cap to 97.8 billion yuan, leaving the 100 billion yuan mark within close reach. Currently, the sharp price increases for storage chips continue.
On February 20, SK Hynix held a virtual investor meeting, sharing the latest data and its industry trend assessment with Goldman Sachs. SK Hynix indicated that its overall inventory for both DRAM and NAND is currently only about 4 weeks, a historically low level. Customers ranging from cloud providers like Google and Microsoft to AI companies like OpenAI and consumer electronics terminal manufacturers are unable to obtain sufficient supply. Double-ordering is further pushing up price expectations. To meet the strong demand for high-end storage driven by AI, SK Hynix is shifting capacity towards high-value-added products like HBM and DDR5. This is also tightening supply and raising price expectations for standard storage products. SK Hynix revealed that its HBM capacity for 2026 is already sold out in advance. The extreme shortage of standard DRAM is significantly increasing suppliers' pricing power, and the company is discussing multi-year long-term contracts with major customers to lock in future supply and prices.
NAND supply is equally tight. As early as January, Kioxia stated that its NAND flash capacity for 2026 was already sold out and expects the tight NAND supply situation to persist at least until 2027. TrendForce forecast in early January that NAND Flash product prices would rise 33% to 38% in Q1 2026, and general-purpose DRAM prices would increase 55% to 60%. By February, these projected increases had been revised upwards to 55%-60% and 90%-95%, respectively, with potential for further upward revisions.
A "Global Storage Chip Industry Deep Dive Report" released by Morgan Stanley on March 1, 2026, pointed out that the current AI-driven storage upcycle will break the industry's past pattern of 3-4 year bull-bear cycles, with the upcycle expected to last at least until 2027. Biwin Storage is also optimistic about short-term price trends. The company stated during investor communications, "From the current perspective, storage product prices are expected to continue rising in the first and second quarters of 2026." A company representative said, "The storage price increase is a positive for the industry, and the company also benefits from the price hikes. Simultaneously, the company's high-value products for the AI emerging edge field are being delivered in continuous batches, and the structure of our shipped products is continuously optimizing."
To meet future demand, Biwin Storage is actively expanding its advanced production capacity. It is understood that its wafer-level advanced packaging and testing manufacturing project in Dongguan's Songshan Lake is progressing smoothly overall. Monthly capacity is expected to reach 5,000 wafers by the end of 2026 and 10,000 wafers by the end of 2027, with plans to begin contributing revenue by the end of 2026. The company has established wafer-level advanced packaging technologies covering Bumping, Fan-in, and Fan-out. Its planned product lines include the FOMS series for advanced storage chips and the advanced memory-computing convergence (CMC) co-packaging series. The yield rate for advanced packaging has already exceeded 95%.
Concurrently, Biwin Storage is accelerating its capital market expansion during this upcycle. Following a refinancing completed last April, the company is swiftly advancing its listing process in Hong Kong. On October 28, 2025, Biwin Storage submitted a listing application to the Hong Kong Exchange, planning to achieve a dual primary listing with "A+H" shares on the main board. Less than a month later, the China Securities Regulatory Commission accepted the company's filing application materials.
Relying on Biwin Storage's strategic position in AI edge applications and the storage super cycle, many investors believe it is only a matter of time before the company surpasses the 100 billion yuan market cap threshold. From a valuation perspective, based on a 100 billion yuan market cap, the price-to-sales ratio would be approximately 8.85 times against the company's 2025 revenue of 11.296 billion yuan. Based on the 2025 net profit of 867 million yuan, the static price-to-earnings ratio would be 115.34 times. For comparison, as of the close on March 6, the leading storage company Longsys had a total market cap of 128.3 billion yuan and a dynamic P/E ratio of 196 times. Longsys forecast a 2025 net profit of approximately 1.25 to 1.55 billion yuan; taking the midpoint of 1.4 billion yuan, its static P/E ratio is about 91.64 times. Given Biwin Storage's better-than-expected performance in the first two months of this year, its full-year 2026 earnings expectations are also likely to be significantly raised. For instance, SDIC Securities expects "Biwin Storage's net profit attributable to shareholders to reach 3.29 billion yuan in 2026." By comparison, a 100 billion yuan valuation for Biwin Storage does not appear overvalued during this period of high semiconductor industry prosperity.
However, the question facing the market is whether Biwin Storage can maintain its footing above the 100 billion yuan mark once it crosses it. Although the current AI-driven storage cycle is considered a "super cycle" within the industry, Biwin Storage's historical financial reports clearly demonstrate the power of cycles: it reported a profit of 71.218 million yuan in 2022, a massive loss of 631 million yuan in 2023, a rebound to a profit of 135 million yuan in 2024, and then a return to a loss of 241 million yuan in the first half of 2025. Consequently, the foremost challenge it faces is the sustainability of the new demand. If AI capital expenditure slows, or if downstream consumer electronics demand is suppressed by price hikes, a cyclical downturn could arrive faster than anticipated.
Public information shows that Biwin Storage's products serve downstream markets including mobile phones, PCs, servers, smart wearables, and industrial/automotive applications. Recently, IDC significantly lowered its smartphone shipment forecast for 2026, reducing it from 1.26 billion units last year to approximately 1.1 billion units this year. The aforementioned senior storage industry insider pointed out that the current price increase cycle in the storage industry will not continue linearly indefinitely, as excessively high prices will eventually suppress demand. "Currently, end products like computers and mobile phones are facing significant cost pressures due to storage price increases. Companies like Lenovo and Dell have already started raising prices. This will lead to suppressed consumer demand, which will, in turn, regulate the market and cause prices to fall back."
Furthermore, although Biwin Storage maintains rapid growth in the AI edge field, the AI edge market itself still holds many uncertainties. While sales of Meta's smart glasses are growing, the overall market size remains limited. The adoption rate of devices like AI glasses and AI watches still depends on technological maturity, consumer demand, and price positioning.
More notably, the company faces significant selling pressure in the capital market. On December 30, 2025, 114 million shares of Biwin Storage, subject to a three-year lock-up period following the IPO, became eligible for trading, accounting for 24.11% of the total share capital. This involves eight shareholders, including the actual controllers and parties acting in concert—Sun Chengsi, Xu Jianfeng, Sun Jing, Sun Liang—and four corporate shareholders. Recently, the National Integrated Circuit Industry Investment Fund Phase II also announced plans to divest no more than 9.3426 million shares of Biwin Storage between February 4 and May 3, 2026, representing no more than 2% of the total share capital. Following this divestment, the national fund's shareholding will fall below 5%. Between February 5 and February 27, 2026, the National Integrated Circuit Industry Investment Fund Phase II had already cumulatively reduced its holding by 4,297,594 shares through centralized bidding, accounting for 0.92% of the company's total shares.
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