GigaDevice(603986) Huajin Securities·2024-12-18 07:37Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is expected to benefit from limited downside in niche DRAM prices, continuing to gain from the reduction or exit of production by leading manufacturers [2] - The establishment of a new subsidiary, Qingyun Technology, aims to focus on customized storage solutions to meet specific market and customer demands [2][3] - The company has a comprehensive niche storage process platform, including NOR Flash, SLC NAND Flash, and DRAM, which positions it well in the market [2] Summary by Relevant Sections Company Overview - The company plans to invest 27 million yuan to establish a controlling subsidiary, Beijing Qingyun Technology Co., Ltd., with a 77.78% stake [2] - The company has been actively developing customized storage products to meet the differentiated needs of clients in various applications, including IoT and smart terminals [2] Financial Performance - The company forecasts revenues of 76.47 billion yuan, 99.26 billion yuan, and 117.76 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 32.8%, 29.8%, and 18.6% [4] - The projected net profit attributable to the parent company is 11.79 billion yuan, 17.37 billion yuan, and 22.49 billion yuan for the same years, with growth rates of 631.8%, 47.3%, and 29.4% [4] - The company is expected to maintain a gross margin of approximately 37.2% in 2024, improving to 39.8% by 2026 [5] Market Dynamics - The demand for niche DRAM products is expected to remain relatively stable, with supply also stabilizing as some leading manufacturers exit the DDR3 product line [3] - The transition towards DDR5 and LPDDR5 products is anticipated to be gradual, driven by increasing capacity requirements in mainstream applications [3] Competitive Landscape - The company is positioned as a leading fabless memory supplier in China, with strategic partnerships for wafer foundry services enhancing its competitive edge in the niche DRAM market [2][4] - The competitive landscape includes three major industry players focusing on mainstream products, while the company targets niche segments [2]