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]

Investment Rating - The report maintains a **Buy** rating for Gigadevice (603986 SS) with a 12-month target price of RMB 136, based on a 37x 2026E P/E ratio [10][12] Core Views - Gigadevice is expected to enter a new growth cycle driven by its expansion into niche DRAM products, with strong EPS growth anticipated as its market share in China's niche DRAM market increases [12] - The company's NOR Flash and MCU businesses are expected to remain stable and show moderate recovery in 2024-25 [12] - The current valuation of Gigadevice is below historical levels, making it attractive [12] 2024 Q4 Performance Outlook - Revenue for Q4 2024 is expected to be RMB 1 883 million, down 8% QoQ but up 38% YoY [1][4] - Gross margin is projected to decline to 39% in Q4 2024, down from 42% in Q3 2024, due to normalized product mix and continued DRAM price pressure [1][2] - Net profit is forecasted to be RMB 276 million, down 12% QoQ but a significant improvement from a loss in the same period last year [1][4] 2025 Q1 Performance Outlook - Revenue for Q1 2025 is expected to remain flat QoQ at RMB 1 866 million, reflecting the typical seasonal weakness in Q1 [2][3] - Net profit is projected to increase slightly by 6% QoQ to RMB 292 million [3][4] DRAM Business Outlook - The DRAM market is expected to remain oversupplied in H1 2025, with a recovery in supply-demand balance anticipated in H2 2025 [6] - Gigadevice's niche DRAM growth will be driven by product expansion, including the mass production of 8Gb DDR4 products in 2025, and increased order share from domestic customers [6] AI Opportunities - The growth of edge AI is expected to benefit Gigadevice's products, including increased NOR Flash chip adoption in AI PCs and AI headphones, and strong growth in AI glasses [7] - The company is exploring customized storage solutions, which could also benefit from edge AI development in areas like AI phones and robotics [7] Financial Forecast Adjustments - Revenue forecasts for 2024-27 have been revised downward by 0%-5%, with gross margin forecasts reduced by up to 3 percentage points, and net profit forecasts lowered by 3%-23% [7][8] - The 2026E revenue is now projected at RMB 11 628 million, with a gross margin of 39 4% and net income of RMB 2 459 million [8]

北京市中伦（深圳）律师事务所 关于兆易创新科技集团股份有限公司 回购注销相关事项的 法律意见书 二〇二五年一月 北京 • 上海 • 深圳 • 广州 • 武汉 • 成都 • 重庆 • 青岛 • 杭州 • 南京 • 海口 • 东京 • 香港 • 伦敦 • 纽约 • 洛杉矶 • 旧金山 • 阿拉木图 Beijing • Shanghai • Shenzhen • Guangzhou • Wuhan • Chengdu • Chongqing • Qingdao • Hangzhou • Nanjing • Haikou • Tokyo • Hong Kong • London • New York • Los Angeles • San Francisco • Almaty 北京市中伦（深圳）律师事务所 关于兆易创新科技集团股份有限公司 回购注销相关事项的 法律意见书 致：兆易创新科技集团股份有限公司 北京市中伦（深圳）律师事务所接受兆易创新科技集团股份有限公司（以下 简称"兆易创新"或"公司"）的委托，担任兆易创新实施2020年股票期权与限 制性股票激励计划（以下简称"2020年激励计划"）、2021年股票期权与 ...

证券代码：603986 证券简称：兆易创新 公告编号：2025-002 兆易创新科技集团股份有限公司 | 回购股份数量 | 注销股份数量 | | 注销日期 | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 股 64,915 | 64,915 | 股 | 年 2025 | 1 | 月 | 21 | 日 | 一、本次限制性股票回购注销的决策与信息披露 兆易创新科技集团股份有限公司（以下简称"公司"）于 2024 年 10 月 25 日分别召开了第四届董事会第二十五次会议和第四届监事会第二十一次会议，审 议通过了《关于注销部分股票期权与回购注销部分限制性股票的议案》。 因 2020 年股票期权与限制性股票激励计划中 4 名原激励对象已离职，同意 公司以 69.999 元/股+同期存款利息（按日计息）的回购价格回购其已获授但尚 未解除限售的 23,940 股限制性股票，并办理回购注销手续。 关于部分限制性股票回购注销实施公告 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 ...

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The DRAM industry is undergoing continuous innovation, and the company is expected to benefit significantly from this trend [19]. - The company is a leading player in the niche storage and MCU sectors in China, with a diversified product portfolio including storage devices, microcontrollers, and sensors [16]. - The introduction of the CUBE technology is anticipated to enhance overall system performance and address existing limitations in memory solutions, particularly for AI applications [11][14]. Financial Performance - In 2023, the company's revenue was 5.76 billion yuan, a decrease of 29.41% year-on-year, while the net profit attributable to shareholders was 161 million yuan, down 92.15% [16]. - For the first three quarters of 2024, the company achieved revenue of 5.65 billion yuan, an increase of 28.56% year-on-year, with a net profit of 832 million yuan, up 91.87% [16]. - The company forecasts net profits of 1.09 billion yuan, 1.62 billion yuan, and 2.10 billion yuan for 2024, 2025, and 2026, respectively [19]. Product Overview - The company has launched various products, including high-capacity and high-performance SPI NOR Flash, SLC NAND Flash, and DRAM products, catering to diverse applications such as IoT, automotive, and industrial sectors [17]. - The DRAM segment is a key focus for the company, with products widely used in networking, television, set-top boxes, and smart home applications [16]. Market Position - The company is strategically partnered with Changxin Storage for DRAM product manufacturing, which enhances its capabilities in the niche DRAM market [19]. - The CUBE technology is positioned to revolutionize edge AI computing by providing high bandwidth and low power consumption, making it suitable for various applications [14].