GigaDevice(603986) Huafu Securities·2024-10-27 08:10Investment Rating - The investment rating for the company is "Buy" [3][15] Core Views - The company reported a significant increase in revenue and net profit for the first three quarters, with revenue of approximately 5.65 billion yuan, up 29% year-on-year, and a net profit of about 830 million yuan, up 91% year-on-year [1] - The third quarter of 2024 saw revenue of approximately 2.04 billion yuan, a year-on-year increase of 43%, and a net profit of approximately 315 million yuan, a year-on-year increase of 222% [1] - The company is experiencing a recovery in demand in the industrial, storage, and computing markets, leading to improved gross margins, which reached 41.8% in Q3, up 3.6 percentage points from the previous quarter [1] - The company is expanding its DRAM business, increasing the expected transaction amount with Longxin Storage from 120 million USD (approximately 852 million yuan) to 140 million USD (approximately 995 million yuan) [1] - The company is a leading player in the SPI NOR Flash market and has successfully launched a full range of automotive-grade products [1] Financial Summary - The company is projected to achieve revenues of 7.4 billion, 9.5 billion, and 11.4 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 1.11 billion, 1.69 billion, and 2.23 billion yuan for the same years [1][11] - The company's gross margin is expected to improve, with projections of 39.2% in 2024, 41.2% in 2025, and 42.6% in 2026 [11] - The company's earnings per share (EPS) is projected to be 1.67 yuan in 2024, 2.54 yuan in 2025, and 3.35 yuan in 2026 [11][10]