GigaDevice(603986) 广发证券·2024-11-15 09:13Investment Rating - The report maintains a "Buy" rating for Gigadevice (603986 SH) with a target price of 102 82 yuan per share [1][3] Core Views - Gigadevice announced the acquisition of a 70% stake in Suzhou Saixin Electronics for 581 million yuan, with Gigadevice contributing 316 million yuan for a 38 07% stake [1] - Suzhou Saixin specializes in lithium battery protection and power management chips, with a unique single-wafer solution and patents Its products are used in wearable devices and power banks, with clients including Xiaomi, OPPO, and Vivo [1] - The acquisition strengthens Gigadevice's analog chip capabilities and enhances market competitiveness through synergies in supply chain and customer base [1] - Gigadevice plans to adjust its DRAM chip R&D project from LPDDR3 to LPDDR5 and add a new automotive electronics chip R&D project [1] Financial Projections - Revenue is expected to grow from 7593 million yuan in 2024E to 10387 million yuan in 2026E, with a CAGR of 14 5% [2] - Net profit attributable to shareholders is projected to increase from 1139 million yuan in 2024E to 2259 million yuan in 2026E, with a CAGR of 24 2% [2] - EPS is forecasted to rise from 1 71 yuan in 2024E to 3 39 yuan in 2026E [2] - ROE is expected to improve from 7 1% in 2024E to 11 2% in 2026E [2] Financial Ratios - Gross margin is projected to stabilize around 39% from 2024E to 2026E [12] - Net margin is expected to increase from 15% in 2024E to 21 7% in 2026E [12] - P/E ratio is forecasted to decline from 53 85 in 2024E to 27 14 in 2026E, indicating improving valuation [12] Strategic Adjustments - Gigadevice is shifting its DRAM chip R&D focus from LPDDR3 to LPDDR5 to align with industry trends [1] - A new automotive electronics chip R&D project has been added to expand its presence in the automotive sector [1]