兆易创新：“存”如基石“算”如冀，花月正春风

Investment Rating - The report maintains a "Buy-A" rating for the company, indicating strong confidence in its growth potential [1] Core Views - The company is a leading fabless semiconductor company specializing in memory technology, MCUs, sensors, and power solutions [1] - It holds the second-largest global market share in SPI NOR Flash and the largest in China, with cumulative shipments exceeding 23.7 billion units [1] - The company has a diverse product portfolio, including 51 series and over 600 models of MCUs, with cumulative shipments exceeding 1.57 billion units [1] - The company is expected to benefit from the DRAM supercycle and capacity adjustments by major manufacturers, with plans to cover major niche DRAM markets by 2025 [1] Financial Projections - Revenue is projected to grow from 7.647 billion yuan in 2024 to 11.776 billion yuan in 2026, with a CAGR of 18.6% [3] - Net profit is expected to increase from 1.179 billion yuan in 2024 to 2.249 billion yuan in 2026, with a CAGR of 29.4% [3] - The company's gross margin is forecasted to improve from 37.2% in 2024 to 39.8% in 2026 [3] Market Position and Product Portfolio - The company is a leader in SPI NOR Flash, with a global market share of 23.2% in 2021, up from 7% in 2016 [1][29] - It offers a wide range of SPI NOR Flash products, covering capacities from 512Kb to 2Gb, with 55nm process technology fully in production [1] - The company is expanding its DRAM product line, including DDR3L and DDR4, with plans to introduce LPDDR4 by 2025 [1] - In the MCU segment, the company has over 600 models, covering applications in automotive, industrial, and consumer electronics [1] Industry Trends - The global semiconductor market is expected to recover strongly in 2024, with memory chips leading the growth [23] - The NOR Flash market is projected to grow to $4 billion by 2029, driven by demand from IoT, automotive, and industrial applications [27] - The DRAM market is expected to reach$780 billion in 2024, with niche DRAM products gaining traction due to capacity shifts by major manufacturers [25] Key Applications - NOR Flash is widely used in smartphones, wearables, IoT devices, and automotive electronics, with demand driven by AI and IoT advancements [27][34] - The company's DRAM products are applied in network communications, TVs, set-top boxes, and automotive systems [1] - MCUs are increasingly used in automotive, industrial control, and IoT applications, with the company's products supporting a wide range of use cases [1]