GigaDevice(603986) 华创证券·2024-08-23 06:08Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [3][12]. Core Views - The company achieved a revenue of 3.609 billion yuan in the first half of 2024, representing a year-on-year increase of 21.69%, and a net profit attributable to shareholders of 517 million yuan, up 53.88% year-on-year [1][3]. - The recovery in downstream demand has led to a steady improvement in profitability, with the net profit margin reaching 15.75% in Q2 2024, an increase of 4.31 percentage points year-on-year [1][3]. - The company is focusing on diversifying its product matrix and enhancing its competitive edge through continuous R&D investment and product iteration [1][3]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 3.609 billion yuan (yoy +21.69%) and a net profit of 517 million yuan (yoy +53.88%), with a non-recurring net profit of 473 million yuan (yoy +71.87%) [1][3]. - For Q2 2024, the revenue was 1.982 billion yuan (yoy +21.99%, qoq +21.78%), and the net profit was 312 million yuan (yoy +67.95%, qoq +52.46%) [1][3]. Market Demand and Product Development - The recovery in demand is primarily driven by the Flash and DRAM segments, with significant growth in automotive and industrial applications [1][3]. - The company has successfully launched new product lines in Flash, DRAM, and MCU, enhancing its market presence and product offerings [1][3]. Share Buyback Proposal - The controlling shareholder proposed a share buyback of no less than 150 million yuan and no more than 200 million yuan, reflecting confidence in the company's long-term development [1][3]. Valuation and Future Outlook - The company is projected to achieve net profits of 1.15 billion yuan, 1.62 billion yuan, and 1.97 billion yuan for 2024, 2025, and 2026 respectively, with a target price of 97.57 yuan based on a 40x PE ratio for 2025 [3][4].