GigaDevice(603986) 平安证券·2024-08-21 14:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating expected strong performance relative to the market over the next six months [4][10]. Core Insights - The company has shown significant recovery in profitability, with a 21.69% year-on-year increase in revenue to 3.609 billion yuan and a 53.88% increase in net profit to 517 million yuan for the first half of 2024 [4][5]. - The demand in downstream markets, particularly in consumer and network communication sectors, has improved, leading to increased sales of storage chips [5][6]. - The company has successfully expanded its product matrix in microcontrollers, with a notable increase in revenue contributions from both consumer and industrial markets [8][10]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved revenue of 3.609 billion yuan, up 21.69% year-on-year, and a net profit of 517 million yuan, up 53.88% year-on-year [4][5]. - The gross margin and net margin for the first half of 2024 were 38.16% and 14.33%, respectively [5]. - The second quarter of 2024 saw revenue of 1.982 billion yuan, a year-on-year increase of 21.99%, and a net profit of 312 million yuan, up 67.95% year-on-year [5]. Business Segments - The storage chip business generated 2.605 billion yuan in revenue, a 29.41% increase year-on-year [5][6]. - The microcontroller business achieved revenue of 805 million yuan, up 4.34% year-on-year, while the sensor business brought in 192 million yuan, up 8.76% year-on-year [5][8]. - The company has expanded its NOR Flash product offerings, which have been recognized for their low power consumption and have been certified for automotive applications [6][8]. Future Projections - The company expects earnings per share (EPS) to be 1.79 yuan in 2024, 2.41 yuan in 2025, and 3.05 yuan in 2026, reflecting a positive growth outlook [10][11]. - The projected price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 41.2, 30.7, and 24.2, respectively, indicating a favorable valuation trend [10][11].