GigaDevice(SH:603986)2024-07-11 07:00Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Insights - The company is a leading IC design manufacturer in the "Storage + MCU + Sensor" sectors, benefiting from the recovery in downstream demand and the trend of domestic substitution [2]. - The storage chip market is showing signs of recovery, with the company achieving record shipments of NOR Flash in 2023 and expected to maintain its market share strategy in 2024 [2][20]. - The company is expanding its MCU product lines into the automotive sector and has a diversified sensor business, positioning itself for growth as market demand rebounds [2]. Summary by Sections Company Overview - The company, founded in 2005, has established itself as a key player in the semiconductor design industry, focusing on storage, MCU, and sensor products [10]. - It has successfully launched various products, including NOR Flash, NAND Flash, and DRAM, and has made significant advancements in MCU technology [10]. Storage Market Analysis - The company has a multi-faceted approach in the storage market, with a focus on NOR, DRAM, and NAND products, and is expected to benefit from a recovery in the storage market [2][27]. - The company’s NOR Flash shipments reached a historical high in 2023, and it is expected to continue its leadership position in the market [2][20]. - The DRAM market is anticipated to grow significantly, with the company’s self-branded DRAM products gaining traction [27][31]. MCU and Sensor Business - The company has successfully launched 46 MCU product series, with over 600 models available, and is expanding into automotive applications [2][48]. - The sensor business is also diversifying, with a focus on high-end consumer electronics, which is expected to drive growth [2][48]. Financial Projections - The company is projected to achieve revenues of 74.91 billion, 92.99 billion, and 105.92 billion yuan for 2024, 2025, and 2026, respectively, with net profits expected to reach 11.67 billion, 15.57 billion, and 19.64 billion yuan in the same years [2][3]. - The current market valuation corresponds to a PE ratio of 52.48, 39.34, and 31.19 for the years 2024, 2025, and 2026, respectively [3]. Market Position and Strategy - The company is focusing on increasing its market share across various product lines, with a strategic emphasis on product competitiveness and innovation [2][20]. - The company’s collaboration with Longxin Technology is expected to enhance its DRAM production capabilities and market presence [31].