Written during the darkest hour of storage ( GigaDevice )

Recently, recently the account has drawn down by about 200 or so. Compared with its market value, that drawdown is roughly 10%. The main reason is the pullback in storage during this wave. For us, we still remain optimistic about the long-term cycle of storage. As for the turbulence along the way, it may feel pretty uncomfortable, but up to now it’s still acceptable.

For China Merchants, we’re optimistic about this year’s profit reaching over 20 billion. As for the market value, it’s over 200 billion. We’ll look at the mid-year report; we expect it to be at least 9 billion. And from a cycle perspective, we think it’s at least a one-year-plus cycle. From the current stage, it could even be a cycle of more than two years.

As for storage, we believe that at the current prices, Winbond?—no, specifically we think Zhaoyi Innovation and Puran are currently not expensive. Of course, they’re still quite a ways from our target points. Whether it’s the information from Google at present, or expectations around U.S. manufacturers and investing in Taiwan firms to expand production—whatever the case, we place more emphasis on seeing the product structure and financial data of domestic manufacturers. This will provide a better verification for our judgment later on. Overall, for this account, we rarely adjust unless there’s a major change in the underlying logic. At present, we don’t plan to make any adjustments either.