GigaDevice(SH:603986) Hua Er Jie Jian Wen·2025-10-28 11:09Core Viewpoint - The company reported strong Q3 performance with revenue of 2.681 billion yuan, a year-on-year increase of 31.40%, and a net profit of 508 million yuan, up 61.13%, driven by improvements in the DRAM industry supply chain [1][2][3] Financial Performance - Q3 revenue reached 2.681 billion yuan, representing a 31.40% year-on-year growth; net profit was 508 million yuan, soaring 61.13% [2][3] - For the first three quarters, total revenue was 6.832 billion yuan, up 20.92%, and net profit was 1.083 billion yuan, increasing by 30.18% [2][3] - Q3 gross margin improved significantly, with a non-recurring net profit growth rate of 63.71% and a weighted average ROE of 6.30%, up 0.96 percentage points year-on-year [2][3] Business Drivers - The improvement in the DRAM industry supply chain has created a favorable "price and volume increase" situation, leading to higher shipment volumes and significant price increases [2][3] - The company is seeing growth in diverse product lines, including consumer, industrial, and automotive sectors, which are effectively collaborating with the main business [4][5] Profitability - The Q3 net profit of 508 million yuan grew at nearly double the rate of revenue growth, indicating high-quality earnings growth not reliant on non-recurring gains [3] - The proportion of operating costs to revenue decreased in Q3, with total operating costs for the first three quarters at 4.195 billion yuan, accounting for 61.4% of revenue, an improvement from 60.5% year-on-year [3] Investment and R&D - R&D expenses for the first three quarters were 860 million yuan, a slight increase of 1.7%, accounting for 12.6% of revenue, down from 15.0% year-on-year [7] - Long-term equity investments increased from 137 million yuan at the beginning of the year to 312 million yuan, a growth of 127%; other investments also saw increases [8]