600721, control rights to be transferred, Jinhua State-owned Assets Supervision and Administration Commission to take control! The big stock's net profit surged by up to 8747.18%, and the storage price hike wave is expected to continue.

Global DRAM manufacturers have kicked off a price-hike cycle, and A-share storage-chip concept stocks have seen a surge in first-quarter earnings.

Baihua Pharma’s actual controller will be changed to the Jinhua Municipal SASAC

On the evening of April 7, Baihua Pharma (600721) released an announcement stating that its controlling shareholder and actual controller, together with Jinhua Juxin Enterprise Management Partnership (Limited Partnership), signed a “Share Transfer Agreement.” The plan is to transfer a total of 79.5251 million shares of unrestricted tradable shares (representing 20.68% of the total share capital), for a total transfer price of 890 million yuan, which equals 11.19 yuan per share. After the transaction is completed, the company’s controlling shareholder will change from a natural person to Jinhua Juxin, and the actual controller will change to the Jinhua Municipal State-owned Assets Supervision and Administration Commission of the People’s Government. The original controlling shareholder will no longer hold shares in the company.

Jinhua Juxin and its managing partner, Jinhua Zhihui Enterprise Management Co., Ltd., have committed that the funding sources for this acquisition are all self-owned funds or legally raised funds, among which the share of self-owned funds is no less than 50%, i.e., not less than 445 million yuan. Within 36 months from the completion date of this share transfer, the shares of the listed company obtained in this transaction will not be pledged.

Baihua Pharma released on the evening of March 30 an announcement on the suspension of trading regarding the planned change of control. Before the suspension, the company’s share price rose continuously, with a gain of 19.62% over five trading days from March 24 to March 30.

It is worth noting that as of the market close on March 30, Baihua Pharma’s share price was 10.18 yuan—meaning this is a premium acquisition. The transfer price of 11.19 yuan per share implies a premium of about 9.92% over the closing price.

Baihua Pharma has also recently released its 2025 annual report: it achieved operating revenue of 388 million yuan, up 0.66% year over year, and has recorded growth for five consecutive years. Attributable net profit was 41 million yuan, down slightly by 1.91% year over year. The company plans to distribute a cash dividend of 0.04 yuan per share to all shareholders (including tax). Total cash dividends for 2025 will be 15.3819 million yuan, accounting for 37.8% of attributable net profit.

Institutions: Consumer-grade DRAM will continue to rise 45%—50% quarter over quarter

Since 2026, global DRAM manufacturers have almost simultaneously entered a price-hike cycle.

On April 7, based on TrendForce’s latest storage industry research, the strategy for major manufacturers to gradually exit the production of products below mature DDR4 remains unchanged. With the market supply structure continuously tightening, the overall prices in the past few months have already accumulated astonishing gains.

TrendForce considered factors such as continued supply contraction, order shifting, and the inability of mature-process suppliers to expand capacity as expected. It forecasts that in 2026’s second quarter, the contract price of Consumer DRAM will continue to increase by 45%—50% quarter over quarter.

TrendForce stated that in March 2026, the price-hike momentum for Consumer DRAM was concentrated in products with capacities below 4Gb. For example, DDR4 4Gb’s average price increased by more than 20% month over month, with gains clearly exceeding those of high-capacity products. Currently, the DDR3 and DDR2 markets also have started to show demand for order transfers. Due to insufficient capacity, in March the average prices of DDR3 and DDR2 products across various capacities rose by 20%—40% (with different levels), resulting in even more pronounced gains.

In addition, some overseas major manufacturers raised DRAM prices. According to a report compiled by Global Times (Science and Technology), Samsung Electronics will increase DRAM prices for shipments in the second quarter by about 30% compared with the first quarter. Previously, in the first quarter of 2026, Samsung Electronics had already doubled the average DRAM price. SK hynix, Micron, and others have also raised prices for their DRAM products.

This round of DRAM price increases is mainly driven by the explosive growth of global AI investment. AI servers consume huge amounts of memory. To meet demand for high-profit AI chips, storage vendors have been shifting production capacity toward HBM and high-end DDR5, directly leading to a sharp reduction in the supply of general-purpose DRAM.

An investment research report from Aijian Securities believes that it is optimistic about China’s domestic storage-chip industry chain, which will usher in a historical development opportunity. Specific segments include storage-chip modules, storage-chip packaging and testing, storage-chip manufacturing, and relevant upstream equipment and materials. Among them, equipment and materials are also the “bottleneck” areas constraining the development of China’s domestic semiconductor industry; it suggests focusing on investment opportunities related to domestic substitution.

Storage-chip concept stocks see a surge in first-quarter earnings

On the evening of April 7, Shanyang Xinchuang, a storage-chip concept stock, released its 2026 first-quarter performance forecast. It expects to achieve attributable net profit of 1.14 billion yuan—1.48 billion yuan, representing a sharp year-on-year increase of 6714.72%—8747.18%. This exceeds the company’s full-year net profit for 2025 as shown in its preliminary performance results. The company said that driven by strong growth in demand for generative AI (AGI) applications, industry business conditions have continued to rise. Prices of enterprise storage products have continued to increase, the company’s profitability has continued to improve, and profit levels have increased significantly.

Besides Shanyang Xinchuang, in the storage sector there is also Demingli, which recently released a performance forecast for the first quarter, expecting attributable net profit of 3.15 billion yuan—3.65 billion yuan. This would turn from a loss of 69.0877 million yuan in the same period last year into a large-scale profit. The company said it has continued to deeply focus on its storage core business, rolling out differentiated and customized storage solutions for areas such as data centers, consumer electronics, and industrial control. Breakthroughs have continued in market expansion, product shipment volumes have increased, and it has driven a large increase in operating revenue.

According to statistics from Securities Times·DataPao, there are 55 A-share stocks categorized under the storage sector. In the heat wave of storage price increases, concept stocks have attracted strong attention from institutions. Twenty-four stocks received ratings from 5 or more institutions, accounting for more than 40% of the total.

Based on consistent forecasts from 5 or more institutions, all of the above 24 stocks are expected to see continued growth in net profit in 2026 and 2027, and the average growth rate is above 20%.

The largest number of rated institutions is for Zhaoyi Innovation, with ratings from 33 institutions. Consensus forecasts indicate that this stock’s net profit growth rates for 2026—2027 will reach 71.95% and 24.08%, respectively.

Next are Inhemotech and North China Chuangxin, with 27 institutional ratings each. Consensus forecasts indicate their 2026 net profit growth will be above 30% across the board.

Statement: All information content from DataPao does not constitute investment advice. The stock market has risk; invest cautiously.

Proofread by: Zhao Yan