GigaDevice(603986) 民生证券·2025-01-24 02:56Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its growth potential in the niche storage market and new product developments [3][5][98]. Core Insights - The company is a leading player in the niche storage market, focusing on memory chips, microcontrollers (MCUs), and sensors. Its storage business is the core growth driver, with a significant market share in NOR Flash and a leading position in the domestic MCU market [1][10][12]. - The demand for niche storage is driven by the rise of edge AI computing, with the company actively exploring customized storage solutions to meet this demand [2][72]. - The company is expected to see substantial growth in net profit from 2024 to 2026, with projected figures of 1.09 billion, 1.56 billion, and 2.24 billion yuan respectively, corresponding to PE ratios of 80, 56, and 39 times [3][4][98]. Summary by Sections Company Overview - The company is a semiconductor design leader in China, primarily engaged in memory chips, microcontrollers, and sensors. It ranks second globally in NOR Flash market share and is the top domestic supplier of 32-bit Arm MCUs [1][10][12]. Storage Market Analysis - The niche storage market, including NOR Flash, niche DRAM, and SLC NAND Flash, is expected to grow, with the global NOR Flash market projected to increase from 4.1 billion by 2028 [1][22][28]. - The company has a complete product line in NOR Flash, covering capacities from 512Kb to 2Gb, and is expanding into automotive and industrial applications [1][39][41]. MCU Market Insights - The global MCU market is projected to grow from 38.8 billion by 2029, with automotive, industrial, and consumer applications being the primary growth drivers [2][78]. - The company holds a leading position in the domestic 32-bit MCU market, with a focus on automotive applications, offering a range of products to meet various needs [2][85][87]. Financial Forecast and Investment Recommendations - The company is expected to recover from a downturn in 2023, with revenue growth projected at 27.6%, 24.1%, and 23.5% for 2024, 2025, and 2026 respectively [4][92]. - The report highlights the company's strong market position and growth potential, recommending a "Buy" rating based on its competitive advantages and product diversification [3][98].