GigaDevice(603986) 中邮证券·2024-11-07 07:16Investment Rating - Buy rating maintained for the stock [2] Core Views - The company reported strong Q3 2024 results with revenue of RMB 5.65 billion, up 28.56% YoY, and net profit of RMB 832 million, up 91.87% YoY [3] - Q3 2024 revenue reached RMB 2.041 billion, up 42.83% YoY and 2.97% QoQ, with net profit of RMB 315 million, up 222.54% YoY and 0.93% QoQ [3] - Gross margin improved to 41.77% in Q3 2024, up 5.41 ppts YoY and 3.61 ppts QoQ, driven by optimized cost structure and high-end product mix [3] - FLASH business expected to grow in single digits QoQ in Q3 2024, with new high-performance, low-power products planned [3] - MCU business achieved four consecutive quarters of shipment growth, with Q3 2024 shipments maintaining high levels despite seasonality [3] - Acquisition of Suzhou Saixi to enhance analog product capabilities, particularly in battery management chips [3] - Adjustment of DRAM R&D project to include LPDDR5, expected to enter the market by 2029-2030 [3] - New investment in automotive MCU R&D project with total investment of RMB 1.212 billion, targeting high-value automotive semiconductor market [4] Financial Projections - Revenue forecast for 2024-2026: RMB 7.633 billion, RMB 9.726 billion, and RMB 11.740 billion, respectively [5] - Net profit forecast for 2024-2026: RMB 1.189 billion, RMB 1.664 billion, and RMB 2.213 billion, respectively [5] - 2024-2026 PE ratios: 53x, 38x, and 28x, respectively [5] - 2024-2026 revenue growth rates: 32.5%, 27.4%, and 20.7%, respectively [7] - 2024-2026 net profit growth rates: 638.1%, 39.9%, and 33.0%, respectively [7] - 2024-2026 gross margins: 37.8%, 39.4%, and 39.8%, respectively [9] - 2024-2026 net margins: 15.6%, 17.1%, and 18.9%, respectively [9] Business Highlights - FLASH business driven by recovery in consumer electronics, with focus on high-performance, low-power products [3] - MCU business benefiting from industrial demand recovery, with shipments expected to hit record highs in 2024 [3] - Strategic acquisition of Suzhou Saixi to strengthen analog product portfolio, particularly in battery management and power management chips [3] - DRAM project adjusted to include LPDDR5, aligning with market demand and technological advancements [3] - Automotive MCU project targeting high-growth market, with potential to break foreign monopolies and expand market share [4]