Written during the darkest hour of storage ( GigaDevice )

Recently, the account has retraced around 200, which corresponds to a decline of about 10% relative to the market value. This is mainly due to the recent pullback in storage. For us, we still have a positive outlook on the long-term cycle of storage. As for the fluctuations along the way, they might be quite uncomfortable, but as of now, they are still acceptable. For China Merchants, we are optimistic that this year’s profit will exceed 20 billion, and the market value will surpass 200 billion. Looking at the half-year report, we expect it to be over 9 billion. Moreover, in terms of cycles, we are looking at a timeframe of at least over a year, and at this stage, we are even talking about a cycle of more than two years.

Regarding storage, we believe that the current prices of Zhaoyi Innovation and Puran are not expensive. Of course, they are still quite far from our target points. Currently, whether it’s the information from Google or the expectation of American manufacturers investing in Taiwanese companies to expand production, we are more focused on the product structure and financial data of domestic manufacturers, as this will provide better validation for future judgments. In summary, for this account, we rarely make adjustments unless there is a significant change in the logic. Currently, there are no plans for adjustments.