GigaDevice(SH:603986) Zheng Quan Shi Bao·2025-10-29 00:59Core Viewpoint - The company, Zhaoyi Innovation, reported a significant increase in net profit and revenue for Q3 2025, driven by improvements in the DRAM industry supply chain and diversified product offerings [1][2]. Financial Performance - In Q3 2025, Zhaoyi Innovation achieved a revenue of 2.681 billion yuan, representing a year-on-year growth of 31.4%, and a net profit of 508 million yuan, up 61.13% [2]. - For the first three quarters of 2025, the company reported a total revenue of 6.832 billion yuan, a year-on-year increase of 20.92%, and a net profit of 1.083 billion yuan, growing by 30.18% [2]. - The basic earnings per share for the company stood at 1.64 yuan [2]. Market Dynamics - The growth in revenue was attributed to a favorable supply situation in the DRAM industry, leading to a "price and volume increase" scenario [2]. - The company is experiencing increased demand across various sectors, including consumer, industrial, and automotive, which aligns with its diverse product matrix [2]. Cash Flow and Liabilities - The net cash flow from operating activities increased by nearly 38% year-on-year, primarily due to higher sales revenue and improved collection of receivables [2]. - Contract liabilities reached 219 million yuan, reflecting a year-on-year increase of 189% [2]. Industry Outlook - Company executives indicated that the market prices for MCU products remain stable, while Flash prices are expected to rise moderately due to full production capacity [3]. - The DRAM market is anticipated to continue experiencing price increases due to supply shortages, with gross margins expected to improve despite rising costs [3]. - Overall demand in the industry is projected to remain strong, driven by robust consumer activity and a steady recovery in industrial sectors [3]. Shareholder Activity - In Q3, several institutional shareholders reduced their stakes in Zhaoyi Innovation, including notable investor Ge Weidong, who decreased his holdings by approximately 1.6953 million shares, bringing his ownership to 2.55% [4]. - The company's stock price has surged nearly 96% since July, with a current market capitalization of 164.8 billion yuan, ranking fifth in the integrated circuit sector [4].