GigaDevice(603986) Huajin Securities·2024-10-28 06:00Investment Rating - The investment rating for the company is "Buy - A" which is maintained [1] Core Views - The company has shown significant year-on-year revenue growth in Q3 2024, with a revenue of 2.041 billion yuan, representing a 42.83% increase year-on-year and a 2.97% increase quarter-on-quarter [1] - The net profit attributable to the parent company for Q3 2024 reached 315 million yuan, a year-on-year increase of 222.55% and a quarter-on-quarter increase of 0.93% [1] - The company’s gross margin for Q3 2024 was 41.77%, up 3.62 percentage points from the previous quarter, primarily due to changes in product sales structure and cost optimization [1] - The company is positioned as a leading fabless memory supplier in China, with a strong market presence in NOR Flash and DRAM segments, and is expected to see continued growth in its DRAM business [1] Financial Performance - For the first three quarters of 2024, the company reported cumulative revenue of 5.660 billion yuan, a year-on-year increase of 28.56%, and a net profit of 832 million yuan, a year-on-year increase of 91.87% [1] - The company’s revenue projections for 2024 to 2026 are 7.647 billion yuan, 9.926 billion yuan, and 11.776 billion yuan, with growth rates of 32.8%, 29.8%, and 18.6% respectively [3] - The net profit projections for the same period are 1.179 billion yuan, 1.737 billion yuan, and 2.249 billion yuan, with growth rates of 631.8%, 47.3%, and 29.4% respectively [3] Market Position - The company has improved its market share in the Serial NOR Flash segment, ranking second globally in 2023 [1] - In the MCU market, the company holds a market share of approximately 1.8% as of 2022, indicating significant growth potential [1] - The company has established a strategic partnership with Changxin Memory, which provides foundry services for its DRAM products, enhancing its competitive position in the DRAM market [1]