GigaDevice(603986) 东方证券·2025-01-23 01:50Investment Rating - The report maintains a "Buy" rating for the company with a target price of 145.18 CNY based on a projected average PE of 61 for comparable companies in 2025 [2][5][7]. Core Insights - The company is focusing on advancing its storage and MCU (Microcontroller Unit) businesses while emphasizing opportunities in edge AI applications. It aims to leverage its position in the NOR Flash market, which ranks second globally, to benefit from the growing demand in consumer electronics and AI-related devices [1][6]. - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are projected at 1.68 CNY, 2.38 CNY, and 3.04 CNY respectively, reflecting adjustments due to a downward supply-demand cycle impacting revenue and gross margins [2][7]. - The company is actively pursuing niche markets in DRAM, with expectations of supply improvements by mid-2025, and is expanding its product offerings in automotive MCU, which is entering a rapid growth phase [6][7]. Financial Summary - The company's revenue is projected to recover from 5,761 million CNY in 2023 to 11,315 million CNY by 2026, with a compound annual growth rate (CAGR) of approximately 20.2% [4][11]. - Operating profit is expected to increase significantly from 120 million CNY in 2023 to 2,236 million CNY in 2026, indicating a strong recovery trajectory [4][11]. - The gross margin is forecasted to improve from 34.4% in 2023 to 44.1% in 2026, reflecting better cost management and product mix [4][11].