ADATA Technology, a prominent memory module manufacturer, has reported robust financials for November, with consolidated revenue exceeding 4.095 billion yuan. This achievement signifies a breakthrough, marking a high point in over 13 and a half years. The impressive monthly increase of 8% and an annual surge of 56.2% underscore the positive momentum driven by rising prices in NAND Flash and DRAM. ADATA remains optimistic, anticipating continued positive developments in memory prices throughout the coming year, signaling the beginning of a memory bull market.
The simultaneous uptrend in DRAM and NAND Flash contract prices and spot prices fueled ADATA’s November consolidated revenue growth, reaching 4.095 billion yuan, an 8% increase from the previous month and a remarkable 56.21% increase from the same period last year. DRAM product revenue played a significant role, surpassing 2.2 billion yuan and accounting for 55.4% of the overall revenue. SSD product revenue contributed 29.05%, while memory cards, flash drives, and other products constituted 15.55%. Cumulatively, ADATA’s consolidated revenue for January to November this year reached 30.553 billion yuan, reflecting a year-on-year decrease of 6.6%.
Chen Libai, Chairman of ADATA, emphasized the company’s unwavering commitment to its upstream production reduction plan and a resolute stance on price increases. Expectations include an accelerated NAND Flash increase rate in the fourth quarter, exceeding initial projections, and a considerable price increase in the first quarter of the following year. DRAM outlook indicates supply shortages and price increases in the first half of the year due to upstream production capacity reduction and a shift towards higher-profit DDR5 and HBM.
Looking ahead, Chen Libai anticipates improved demand in the memory market, driven by eased global regional tensions, slowed global inflation pressure, and increased demand for PCs and smartphones. The rising memory consumption is further fueled by the growing memory capacity of various application devices, generative AI applications, and the increasing penetration rate of electric vehicles. ADATA expects a significant bit growth rate recovery for DRAM and NAND Flash in the coming year.
