GigaDevice(603986) 财通证券·2024-10-26 14:23Investment Rating - Maintained "Overweight" rating [1][3] Core Views - The company achieved robust growth in Q3 2024, with significant progress in DRAM business [3] - Revenue for the first three quarters of 2024 reached 5.65 billion yuan, up 28.56% YoY, and net profit attributable to shareholders was 832 million yuan, up 91.87% YoY [3] - Q3 2024 revenue was 2.041 billion yuan, up 42.83% YoY and 2.97% QoQ, with net profit of 315 million yuan, up 222.55% YoY and 0.93% QoQ [3] - Gross margin improved to 41.77% in Q3 2024, up 5.41 ppts YoY and 3.62 ppts QoQ, driven by optimized cost structure and reduced high-cost inventory [3] - Increased DRAM-related transaction volume with ChangXin Memory, raising the estimated transaction amount from 120 million USD to 140 million USD [3] Financial Performance and Projections - Revenue for 2024E is projected at 7.54 billion yuan, with a growth rate of 30.88% YoY, and net profit of 1.103 billion yuan, up 584.35% YoY [2][3] - Revenue for 2025E is expected to reach 9.477 billion yuan, with a growth rate of 25.69% YoY, and net profit of 1.614 billion yuan, up 46.38% YoY [2][3] - Revenue for 2026E is forecasted at 11.254 billion yuan, with a growth rate of 18.75% YoY, and net profit of 2.257 billion yuan, up 39.81% YoY [2][3] - EPS for 2024E, 2025E, and 2026E is projected at 1.66 yuan, 2.42 yuan, and 3.39 yuan, respectively [2][3] - ROE is expected to improve from 6.83% in 2024E to 11.61% in 2026E [2][3] Business Highlights - DRAM product prices declined due to intensified competition and weakened demand, while MCU shipments remained stable [3] - NOR and NAND product lines achieved sequential growth [3] - The company plans to launch more DDR4 products and expand into overseas markets [3] Valuation Metrics - PE ratios for 2024E, 2025E, and 2026E are 53.83x, 36.77x, and 26.30x, respectively [2][3] - PB ratios for 2024E, 2025E, and 2026E are 3.68x, 3.39x, and 3.05x, respectively [2][3]