• 4Q26 revenue/adj. PATMI were within our expectations. FY26 revenue/adj. PATMI were at 103%/105% of our FY26 forecasts. 4Q26 adj. PATMI spiked up more than 10x YoY to US$38.4bn, driven by an est. 232%/383% YoY surge in DRAM/NAND ASPs respectively.
• Micron signed 10 new strategic customer agreements (SCAs) in 4Q26, bringing the total SCAs signed to 26. The SCAs have much stricter terms than past long-term agreements, such as cash deposits. Most SCAs have take-or-pay contracted volumes and price floors. Management guided that the SCAs represent 35% of total revenue through 2030e. Micron guided that the memory and storage shortage will be worse from 2027-2028. Hyperscalers and high-end processor chip companies prioritise securing memory supply through 2031 with about 20% cash deposits.
• We maintain BUY with a higher TP of US$1,950 (prev. US$1,870). We roll forward our FY27e forecasts, raising our FY27e revenue/adj PATMI forecasts by 11%/22% respectively due to the expected rise in DRAM and NAND prices. We lowered our FY27e P/E assumptions to 12x (prev. 14x) as Micron’s semiconductor peers trade at a lower P/E multiple of 26x (prev. 29x). Micron plans to return all excess cash to shareholders, mainly via buybacks, starting from 9 December 2026 (end of CHIPS Act restrictions). Our base case is for Micron to return about US$70bn in FY27e, which at ~US$1100/share could boost EPS by about 6%.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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