Credo Technology (US:CRDO) SINOLINK SECURITIES·2025-03-06 05:14Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3]. Core Insights - The company reported a significant revenue increase of 154.4% year-over-year and 87.4% quarter-over-quarter for FY25Q3, achieving $135 million in revenue [1]. - The GAAP net profit for FY25Q3 was $29.36 million, reflecting a year-over-year increase of 6760% and a return to profitability [1]. - The company expects FY25Q4 revenue to be between $155 million and $165 million, with a year-over-year growth of 163% [1]. Summary by Sections Performance Review - For FY25Q3, the company achieved a GAAP gross margin of 63.6% and a Non-GAAP gross margin of 63.8% [1]. - Non-GAAP net profit for FY25Q3 was $45.38 million, showing a year-over-year increase of 618% [1]. Operational Analysis - Revenue growth in FY25Q3 was primarily driven by increased demand from major clients, with the largest client accounting for 86% of revenue [2]. - The company anticipates that 3-4 clients will contribute over 10% of revenue in FY25Q4 [2]. - The company is actively expanding its PCIe-related product offerings and plans to showcase PCIe AEC products at the upcoming GTC event [2]. Profit Forecast, Valuation, and Rating - The company is positioned as a leading player in the AEC industry, with expectations of benefiting from the growth in AI Ethernet networking and ASIC demand [3]. - Revenue projections for FY25, FY26, and FY27 are $423.46 million, $662.22 million, and $798.71 million, respectively, with year-over-year growth rates of 119.4%, 56.4%, and 20.6% [6]. - GAAP net profit forecasts for the same periods are $35.30 million, $95.45 million, and $174.25 million [6].