Company Overview - The report covers a leading domestic multi-category integrated chip supplier, established in 2005, with products including memory, 32-bit general-purpose MCUs, sensors, analog products, and overall solutions. The company is the world's largest Fabless Flash supplier, holding the second position in the NOR Flash market globally and the first in China, with cumulative shipments exceeding 23.7 billion units. Its products are widely used in industrial, automotive, consumer electronics, and IoT sectors [1][17]. Product Leadership - The company is recognized as the domestic leader in NOR and MCU segments. In the storage category, it is the top global Fabless Flash supplier, focusing on niche markets with a strong presence in the SPI NOR Flash sector, covering capacities from 512Kb to 2Gb, and achieving significant advantages in the mid-to-high-end consumer electronics market [2][36]. - The company ranks first in the domestic 32-bit Arm® general-purpose MCU market, with over 600 product models across 51 series, achieving cumulative shipments of over 1.5 billion units by the end of 2023 [3][41]. Industry Trends - The semiconductor industry is entering a new upcycle, with significant growth in storage demand driven by AI applications. According to SIA, global semiconductor sales are projected to reach $627.6 billion in 2024, a year-on-year increase of 19.1%, with storage chip sales expected to hit $165.1 billion, reflecting a 78.9% growth [4][50]. - The domestic substitution process is accelerating, particularly in light of new export regulations affecting HBM products, which is pushing the Chinese storage industry towards greater self-sufficiency [4][50]. Strategic Positioning - The company has established three strategic layouts targeting niche markets, including customized storage solutions through its subsidiary Beijing Qingyun Technology, which focuses on non-standard interface storage needs for IoT and smart terminal applications [6][18]. - The company is positioned as the second-largest player in the global NOR market, benefiting from the exit of international competitors from the mid-to-low-end NOR market, and is expected to further increase its market share due to rising demand from AI-driven applications [6][11]. Financial Performance and Forecast - The company forecasts revenues of 7.35 billion, 9.33 billion, and 11.2 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 27.6%, 27.0%, and 20.0%. Net profits are expected to reach 1.09 billion, 1.61 billion, and 2.05 billion yuan, with substantial growth rates of 577.2%, 47.5%, and 27.0% [12][22]. - The report assigns a "Buy" rating based on a comparative analysis with similar companies, indicating that the company's PE ratios are below the average of its peers, reflecting its potential for growth as a leader in the domestic NOR and MCU markets [12][7].

Investment Rating - The report assigns a "Buy" rating for the company, citing its position as a leading domestic supplier of NOR Flash and MCU products, benefiting from AI applications and domestic substitution trends [12]. Core Insights - The company is a leading multi-category integrated chip supplier in China, established in 2005, with a focus on memory, 32-bit general-purpose MCUs, sensors, and analog products. It ranks first globally in Fabless Flash supply and second in the NOR Flash market [1][17]. - The semiconductor industry is entering a new upcycle, with significant growth in storage demand driven by AI applications. Global semiconductor sales are projected to reach $627.6 billion in 2024, a year-on-year increase of 19.1%, with storage chip sales expected to grow by 78.9% [4][50]. Company Overview - The company has a diverse product portfolio, including memory (NOR, NAND, and niche DRAM), 32-bit MCUs, and sensors, with applications across various sectors such as industrial, automotive, consumer electronics, and IoT [1][35]. - It is the second-largest NOR Flash supplier globally, with a cumulative shipment of over 23.7 billion units, and has a strong presence in the SPI NAND Flash market [2][36]. Product Analysis - The company has successfully launched 51 series of GD32 MCUs, with over 600 products shipped, achieving a cumulative shipment of over 1.5 billion units by the end of 2023 [3][41]. - The storage segment remains the primary revenue source, accounting for 71% of total revenue in 2023, with a focus on high-performance and low-power products [29][33]. Industry Trends - The semiconductor industry is experiencing a resurgence, with a projected increase in global semiconductor sales and a significant rise in storage chip demand due to AI applications [4][50]. - The domestic substitution process is accelerating, particularly in the context of U.S. export controls affecting HBM products, which is driving the Chinese storage industry towards self-sufficiency [4][50][58]. Financial Projections - The company anticipates revenues of 7.35 billion, 9.33 billion, and 11.2 billion yuan for 2024, 2025, and 2026, respectively, with net profits expected to grow significantly [12][22]. - The report highlights a recovery in profitability, with a projected net profit of 1.09 billion yuan in 2024, reflecting a year-on-year increase of 577.2% [12][22].

证券代码：603986 证券简称：兆易创新 公告编号：2025-004 兆易创新科技集团股份有限公司 关于完成工商变更登记的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 兆易创新科技集团股份有限公司（以下简称"公司"）于 2024 年 9 月 26 日 召开 2024 年第三次临时股东会，审议通过了《关于以集中竞价交易方式回购公 司股份方案的议案》，同意公司回购股份全部用于注销并减少注册资本。公司于 2024 年 11 月 21 日完成了前述全部回购股份 1,748,100 股的注销工作，公司注册 资本相应减少。公司总股本由 665,872,205 股变更为 664,124,105 股；公司注册资 本由人民币 665,872,205 元变更为人民币 664,124,105 元。该注册资本变更事项已 于 2024 年 11 月 26 日召开的第四届董事会第二十七次会议、2024 年 12 月 16 日 召开的 2024 年第五次临时股东会审议通过。 目前公司已完成了上述事项的工商变更登记，并取得了北京市海淀区市场监 督管 ...

Investment Rating - The report assigns an initial investment rating of "Buy" for the company [5] Core Views - The company, Zhaoyi Innovation, specializes in semiconductor design, focusing on memory devices, MCUs, and sensor solutions. Its core product lines include flash memory (Nor, SLC NAND), DRAM, microcontroller units (MCUs), and smart human-machine interaction sensor chips [5][6] - The company is experiencing steady growth in its traditional business, with its DRAM segment driving significant advancements. It has achieved a notable increase in market share, ranking second globally in Serial NOR Flash as of 2023 [6][7] - The company is the leading supplier of 32-bit ARM general-purpose MCUs in China, with over 600 MCU products across various performance and application categories [6] Financial Performance and Projections - The company’s revenue for 2024 is projected to be 7.39 billion yuan, with a year-on-year growth rate of 28.30%. The net profit for the same year is expected to reach 1.11 billion yuan, reflecting a substantial increase of 591.29% compared to 2023 [10][11] - The report forecasts a continued increase in net profit for 2025 and 2026, with expected figures of 1.77 billion yuan and 2.42 billion yuan, respectively, indicating growth rates of 59.25% and 36.71% [10][11] - The company’s P/E ratios for 2024, 2025, and 2026 are projected to be 82.60, 51.87, and 37.94, respectively, suggesting a favorable valuation compared to comparable companies in the sector [10][11] Market Trends and Opportunities - The multi-layer DRAM market is emerging, and the company is positioned to benefit from this industry-wide technological transformation. The report highlights advancements in HBM and CUBE technologies that significantly enhance capacity and bandwidth [8] - The company has established a stable business relationship with Changxin Technology Group, which provides foundry services for its DRAM products, further strengthening its market position [8]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its leading position in the niche storage industry and the growth potential from new product developments [3][5][98]. Core Insights - The company, Zhaoyi Innovation, is a leading player in the niche storage market, focusing on memory chips, microcontrollers (MCUs), and sensors. Its storage business is the core growth driver, with a significant market share in NOR Flash and a leading position in the domestic MCU market [1][10][12]. - The demand for niche storage is being driven by the rise of edge AI computing, which requires high bandwidth and low power consumption solutions. The company is also exploring customized storage solutions to meet these emerging needs [2][72]. - The financial forecasts predict a recovery in revenue and profit margins, with expected net profits of 1.09 billion, 1.56 billion, and 2.24 billion yuan for 2024, 2025, and 2026 respectively, reflecting significant growth from 2023 [3][4][92]. Summary by Sections Company Overview - Zhaoyi Innovation is a semiconductor design company established in 2005, focusing on memory products, microcontrollers, and sensors. It ranks second globally in NOR Flash market share and is the leading supplier of 32-bit Arm MCUs in China [1][10][12]. Storage Market Analysis - The storage market is expected to grow from $144 billion in 2022 to $256 billion by 2028, with a compound annual growth rate (CAGR) of 10%. The company is well-positioned in the NOR Flash segment, which is projected to grow from $3.2 billion in 2022 to $4.1 billion by 2028 [22][24]. - The company has a complete product line in NOR Flash, covering capacities from 512Kb to 2Gb, and is expanding into automotive and industrial applications [28][39]. MCU Market Insights - The global MCU market is projected to grow from $28.2 billion in 2023 to $38.8 billion by 2029, with automotive applications being a significant driver. The company holds a leading position in the domestic 32-bit MCU market and is focusing on expanding its automotive product offerings [2][78][85]. Financial Projections - The company is expected to see a revenue increase from 5.76 billion yuan in 2023 to 11.26 billion yuan in 2026, with a corresponding improvement in net profit margins. The projected PE ratios for 2024, 2025, and 2026 are 80, 56, and 39 respectively, indicating a favorable valuation compared to peers [3][4][92][98].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its growth potential in the niche storage market and new product developments [3][5][98]. Core Insights - The company is a leading player in the niche storage market, focusing on memory chips, microcontrollers (MCUs), and sensors. Its storage business is the core growth driver, with a significant market share in NOR Flash and a leading position in the domestic MCU market [1][10][12]. - The demand for niche storage is driven by the rise of edge AI computing, with the company actively exploring customized storage solutions to meet this demand [2][72]. - The company is expected to see substantial growth in net profit from 2024 to 2026, with projected figures of 1.09 billion, 1.56 billion, and 2.24 billion yuan respectively, corresponding to PE ratios of 80, 56, and 39 times [3][4][98]. Summary by Sections Company Overview - The company is a semiconductor design leader in China, primarily engaged in memory chips, microcontrollers, and sensors. It ranks second globally in NOR Flash market share and is the top domestic supplier of 32-bit Arm MCUs [1][10][12]. Storage Market Analysis - The niche storage market, including NOR Flash, niche DRAM, and SLC NAND Flash, is expected to grow, with the global NOR Flash market projected to increase from $3.2 billion in 2022 to $4.1 billion by 2028 [1][22][28]. - The company has a complete product line in NOR Flash, covering capacities from 512Kb to 2Gb, and is expanding into automotive and industrial applications [1][39][41]. MCU Market Insights - The global MCU market is projected to grow from $28.2 billion in 2023 to $38.8 billion by 2029, with automotive, industrial, and consumer applications being the primary growth drivers [2][78]. - The company holds a leading position in the domestic 32-bit MCU market, with a focus on automotive applications, offering a range of products to meet various needs [2][85][87]. Financial Forecast and Investment Recommendations - The company is expected to recover from a downturn in 2023, with revenue growth projected at 27.6%, 24.1%, and 23.5% for 2024, 2025, and 2026 respectively [4][92]. - The report highlights the company's strong market position and growth potential, recommending a "Buy" rating based on its competitive advantages and product diversification [3][98].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 145.18 CNY based on a projected average PE of 61 for comparable companies in 2025 [2][5][7]. Core Insights - The company is focusing on advancing its storage and MCU (Microcontroller Unit) businesses while emphasizing opportunities in edge AI applications. It aims to leverage its position in the NOR Flash market, which ranks second globally, to benefit from the growing demand in consumer electronics and AI-related devices [1][6]. - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are projected at 1.68 CNY, 2.38 CNY, and 3.04 CNY respectively, reflecting adjustments due to a downward supply-demand cycle impacting revenue and gross margins [2][7]. - The company is actively pursuing niche markets in DRAM, with expectations of supply improvements by mid-2025, and is expanding its product offerings in automotive MCU, which is entering a rapid growth phase [6][7]. Financial Summary - The company's revenue is projected to recover from 5,761 million CNY in 2023 to 11,315 million CNY by 2026, with a compound annual growth rate (CAGR) of approximately 20.2% [4][11]. - Operating profit is expected to increase significantly from 120 million CNY in 2023 to 2,236 million CNY in 2026, indicating a strong recovery trajectory [4][11]. - The gross margin is forecasted to improve from 34.4% in 2023 to 44.1% in 2026, reflecting better cost management and product mix [4][11].

Investment Rating - Buy (Maintained) [1] Core Views - The company is expected to achieve high growth in 2024, driven by increased revenue and sales across multiple sectors, including consumer, networking, and computing [3] - Revenue for 2024 is projected to reach approximately 7.349 billion yuan, a year-on-year increase of 27.57% [3] - Net profit attributable to the parent company is expected to be 1.09 billion yuan in 2024, a significant increase of 576.43% compared to 2023 [3] - The company's DRAM business is focused on niche markets, with plans to complete the development of DDR4 and LPDDR4 small-capacity products within 1-2 years [3] - The Nor Flash market is expected to see increased demand due to AI-driven growth in PC and headset applications, with limited further price declines [4] - The acquisition of Saixin is expected to enhance the company's competitiveness in the analog sector, particularly in battery management technologies [5] Financial Performance and Valuation - Revenue for 2024 is forecasted at 7.349 billion yuan, with a projected growth rate of 27.6% [6] - Net profit attributable to the parent company is expected to reach 1.09 billion yuan in 2024, with a growth rate of 576.1% [6] - Gross margin is expected to improve from 34.4% in 2023 to 35.6% in 2024 [6] - The company's P/E ratio for 2024 is estimated at 83.0, with a projected decrease to 52.2 in 2025 [6] - ROE is expected to increase from 1.1% in 2023 to 6.7% in 2024 [6] Business Strategy and Market Position - The company continues to focus on market share expansion, with significant R&D investment and product iteration [3] - The DRAM business is strategically positioned in niche markets, with plans to develop LPDDR5 products in the future [3] - The Nor Flash market is expected to benefit from AI-driven demand, particularly in PC and headset applications [4] - The acquisition of Saixin is aimed at strengthening the company's position in the analog sector, particularly in battery management and power management chips [5] Industry and Market Trends - The DRAM market is expected to see price stabilization and recovery in the second half of 2025, driven by improved supply conditions [3] - The Nor Flash market is expected to see increased demand from AI applications, with limited further price declines [4] - The company's MCU business is exploring new directions, including automotive MCUs, which have a different business model compared to consumer and industrial MCUs [5]

Financial Performance Forecast - The company expects a net profit attributable to shareholders of approximately 1,090 million yuan for 2024, an increase of about 928.86 million yuan compared to the same period last year, representing a year-on-year growth of approximately 576.43%[1] - The expected net profit attributable to shareholders after deducting non-recurring gains and losses is approximately 1,030 million yuan, an increase of about 1,002.60 million yuan compared to the same period last year, reflecting a year-on-year growth of approximately 3,659.04%[3] - The company anticipates total operating revenue of approximately 7.349 billion yuan for 2024, an increase of about 1.588 billion yuan compared to the same period last year, indicating a year-on-year growth of approximately 27.57%[3] - The net profit attributable to shareholders for the same period last year was 161.14 million yuan, and the net profit after deducting non-recurring gains and losses was 27.40 million yuan[5] Factors Influencing Performance - The company attributes the performance increase to a recovery in downstream market demand, increased customer inventory, and significant revenue and sales growth across multiple sectors including consumption, networking, and computing[7] - The company continues to focus on market share, increasing R&D investment, optimizing product costs, and enhancing product competitiveness across multiple product lines[7] Asset Impairment and Forecast Accuracy - The impairment losses on goodwill and inventory assets in 2023 amounted to approximately 610 million yuan, with a significant decrease in related asset impairment losses expected in 2024 compared to 2023[7] - The performance forecast is based on the company's professional judgment and has not been audited by the annual audit accountant, with no significant uncertainties affecting the accuracy of the forecast[8] - The forecast data is preliminary and the specific financial data will be disclosed in the company's officially audited 2024 annual report[9]

Group 1 - The company, Zhaoyi Innovation (603986), expects to achieve a net profit of approximately 1.09 billion yuan for 2024, representing a year-on-year growth of about 576.43% [1] - The industry is experiencing a recovery in downstream market demand, leading to an increase in customer inventory [1] - The company's products have seen significant revenue and sales growth across multiple sectors, including consumer electronics, networking, and computing [1]