GigaDevice(603986) 山西证券·2025-05-22 01:35Investment Rating - The report maintains a "Buy-A" rating for the company, indicating a strong potential for price appreciation relative to the benchmark index [3][9]. Core Insights - The company's performance has significantly improved, with a diversified product layout helping it navigate through market cycles. In 2024, the company achieved a revenue of 7.356 billion yuan, a year-on-year increase of 27.69%, and a net profit of 1.103 billion yuan, reflecting a remarkable growth of 584.21% [4][9]. - In Q1 2025, the company reported a revenue of 1.909 billion yuan, up 17.32% year-on-year, and a net profit of 235 million yuan, an increase of 14.57% [4][9]. Financial Performance - The company’s revenue and net profit for 2024 were 7.356 billion yuan and 1.103 billion yuan, respectively, with a significant increase in product shipments, reaching 4.362 billion units, a growth of 39.72% [4][5]. - The gross margin for 2024 was 38.00%, up 3.58 percentage points year-on-year, while the net margin was 14.97%, an increase of 12.17 percentage points [5][11]. - For Q1 2025, the gross margin was 37.44%, showing a slight year-on-year decline but a quarter-on-quarter increase of 4.27% [5][11]. Market Dynamics - The company benefits from improved supply-demand dynamics and continuous product innovation, positioning it well for future growth. The NOR Flash segment is expected to see increased value due to AI applications, while the niche DRAM market is anticipated to grow as major competitors exit [6][8]. - The MCU market is also projected to expand significantly, driven by advancements in AI and robotics, with the company poised to capture a larger market share [8][9]. Earnings Forecast - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 2.34 yuan, 3.08 yuan, and 3.84 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 50.5, 38.4, and 30.8 [9][11].