Guojin Securities: Micron Technology advances long-term agreements, supply-demand gap expected to continue.

Guojin Securities research report believes that Micron Technology is advancing long-term agreements, and the supply-demand gap is expected to continue. Micron Technology has already completed 16 SCAs with customers, covering downstream markets such as data centers, consumer electronics, and automotive. The duration of the SCA with automotive customers is three years, while with other customers it is primarily five years. The 16 SCA agreements already account for 20% of Micron Technology's DRAM shipments and 1/3 of its NAND shipments. The lower end of the price range of the SCAs signed by Micron Technology can also bring profitability exceeding that of past cycle peaks. Micron Technology forecasts continued tight supply of DRAM and NAND in 2027. Guojin Securities believes that the supply of the storage industry is expected to remain tight, and Micron Technology is expected to maintain high profitability. By signing long-term agreements with downstream customers, Micron Technology is expected to reduce the cyclical fluctuations in product shipment prices and mitigate the company's cyclical performance.