Serenity Sees ESMT Repeating Sandisk's Strong Run as Memory Prices Rise

Serenity said on X that he is bullish on memory chip maker Elite Semiconductor Memory Technology (ESMT, 3006) over the next few months and thinks its share performance could mirror Sandisk's recent strength. According to Odaily, he said DDR2 chip prices are about $0.96 each and that a threefold rise in ASP would add roughly $2 to the cost of each chip. He added that the higher cost would be limited for end products but could have a significant impact on ESMT's profits if memory prices keep rising. Serenity also said SLC NAND ASP is expected to rise 120% to 170% in the second half of the year, while NOR Flash and other products also face price increase expectations. Serenity said ESMT's monthly net profit is about $111 million based on July results, with a market value of about $2.8 billion, and argued that the stock still has substantial room for valuation re-rating. He said ESMT's current situation reminds him of early Sandisk, but that the opportunity is mainly concentrated in traditional and niche memory markets.