GigaDevice(SH:603986) KAIYUAN SECURITIES·2024-08-22 14:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company achieved significant year-on-year growth in revenue and net profit for the first half of 2024, with revenue reaching 3.609 billion yuan, up 21.69% YOY, and net profit of 517 million yuan, up 53.88% YOY. The second quarter alone saw revenue of 1.982 billion yuan, up 21.99% YOY and 21.78% QOQ, with net profit of 312 million yuan, up 67.95% YOY and 52.46% QOQ. The forecast for net profit for 2024-2026 has been slightly adjusted downwards due to market recovery not meeting expectations, with projected figures of 1.138 billion, 1.586 billion, and 2.073 billion yuan respectively [3][4] Financial Performance Summary - In 2024H1, the company reported a revenue of 3.609 billion yuan, a 21.69% increase YOY, and a net profit of 517 million yuan, a 53.88% increase YOY. The second quarter saw a revenue of 1.982 billion yuan, a 21.99% increase YOY, and a net profit of 312 million yuan, a 67.95% increase YOY [3] - The company’s revenue and net profit projections for 2024E, 2025E, and 2026E are 7.544 billion yuan, 9.301 billion yuan, and 11.819 billion yuan respectively, with corresponding net profits of 1.138 billion yuan, 1.586 billion yuan, and 2.073 billion yuan [6][10] - The company’s gross margin is projected to improve from 35.4% in 2024E to 38.5% in 2026E, while net margin is expected to rise from 15.1% to 17.5% over the same period [6][11] Market and Product Insights - The company has seen a recovery in demand for its Flash products, with significant growth in overall shipment volume and revenue in the consumer and networking markets during 2024H1. The self-branded DRAM products have also expanded their market presence, with increased customer transactions and sales in various applications [4] - In the MCU segment, the company launched new low-power, value, and high-performance product lines, contributing to revenue growth in consumer and industrial markets. The automotive sector has seen substantial growth, with the company’s automotive MCU products being adopted by several leading manufacturers [5]