GigaDevice(603986) 开源证券·2024-07-24 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) as of July 23, 2024 [2]. Core Insights - The company is a leading player in the storage and MCU sectors in China, with a robust product ecosystem that allows for synergy across different categories. The self-developed DRAM business is expected to drive growth, with projected net profits of 1.15 billion, 1.73 billion, and 2.31 billion yuan for 2024, 2025, and 2026 respectively, reflecting significant growth rates [3][4]. Summary by Sections Company Overview - The company has established itself as a dual leader in the storage and MCU sectors, continuously enriching its product ecosystem since its inception in 2004. It has achieved significant market shares in NOR Flash and MCU, ranking second globally in NOR Flash and first in China for Arm-based MCUs [11][12]. Storage Chips - The company focuses on NOR Flash, niche DRAM products, and SLC NAND, with plans to penetrate high-end markets. The prices of niche storage products have begun to recover, and the company is well-positioned to benefit from this trend. The self-developed DRAM business is accelerating, supported by partnerships with leading manufacturers [4][22][31]. MCU Business - The company has successfully launched a wide range of MCU products, covering various market needs. The MCU segment is expected to recover as demand increases, particularly in the automotive sector, where the company has established partnerships with Tier 1 suppliers [5][11]. Financial Performance - The company has shown resilience in its financial performance, with a significant recovery in Q1 2024, achieving a revenue of 1.63 billion yuan, a year-on-year increase of 21.3%. The net profit for the same period was 210 million yuan, up 36.5% year-on-year [16][17]. Research and Development - The company has consistently increased its R&D investment, with expenditures rising from 102 million yuan in 2016 to 1.067 billion yuan in 2023, reflecting a compound annual growth rate (CAGR) of 39.8%. The number of R&D personnel has also significantly increased, indicating a strong commitment to innovation [20][21].