GigaDevice(SH:603986) Huajin Securities·2024-11-05 23:33Investment Rating - The investment rating for the company is "Buy - A" which is maintained [1][4] Core Views - The acquisition of a 38.07% stake in Suzhou Saixin will enhance the company's product depth and breadth, improving its competitive edge in analog chips [1] - The company plans to adjust its DRAM chip R&D and industrialization projects to align with market demand and technological iterations, reducing total investment from 39.92 billion to 35.71 billion [1] - A new project for automotive electronic chip R&D and industrialization is introduced, with an investment of 7.06 billion aimed at enhancing the company's MCU product line and competitiveness [1][3] Financial Performance and Projections - The company expects revenues of 76.47 billion, 99.26 billion, and 117.76 billion for 2024, 2025, and 2026 respectively, with growth rates of 32.8%, 29.8%, and 18.6% [4] - Projected net profits for the same years are 11.79 billion, 17.37 billion, and 22.49 billion, with growth rates of 631.8%, 47.3%, and 29.4% [4] - The company's gross margin is expected to improve from 34.4% in 2023 to 39.8% by 2026 [5] Market Position and Strategy - The automotive MCU market is anticipated to grow significantly, with the average value per vehicle expected to exceed 200 USD, indicating a high potential for domestic manufacturers to capture market share [3] - The company aims to leverage its technological expertise to enhance its high-end MCU product development capabilities, addressing the domestic demand for automotive electronic components [3] Investment Projects - The adjusted DRAM chip R&D project is expected to have a tax-adjusted payback period of 8.66 years, with a planned operational status by December 2028 [1] - The automotive electronic chip project has a construction period of 4.17 years, targeting completion by December 2028 [3]