GigaDevice(SH:603986) Xin Lang Cai Jing·2025-10-29 07:35Core Insights - The report from Guosheng Securities indicates that Zhaoyi Innovation achieved a net profit attributable to shareholders of 1.08 billion yuan in Q1-Q3 of 2025, representing a year-on-year increase of 30.2% [1] - In Q3 of 2025, the company reported a net profit of 510 million yuan, which is a year-on-year increase of 61.1% and a quarter-on-quarter increase of 49.0% [1] - The growth in performance is primarily driven by comprehensive price increases in niche storage and a recovery in downstream demand [1] Industry Overview - The DRAM industry experienced a surge in demand due to the AI boom last year, particularly for High Bandwidth Memory (HBM) [1] - Non-AI applications in servers, PCs, smartphones, and networking are also showing signs of recovery, with consumer products benefiting from stimulus measures in certain regions [1] Company Positioning - Zhaoyi Innovation's product portfolio covers three main areas: storage, MCU, and sensors, with storage revenue expected to account for over 70% in 2024 [1] - The company holds the second-largest global market share in the NOR Flash segment and is gradually increasing its share in the SLC NAND market [1] - The DRAM business is anticipated to see significant growth as major manufacturers gradually exit the market and customized solutions progress smoothly [1] Valuation Metrics - The current stock price corresponds to price-to-earnings ratios of 113, 85, and 69 for the years 2025, 2026, and 2027, respectively [1] - The company maintains a "buy" rating based on its performance and growth prospects [1]