GigaDevice(603986) 华西证券·2025-05-28 02:30Investment Rating - The report assigns a rating of "Buy" for the company [4] Core Viewpoints - The company, Zhaoyi Innovation, is a leading player in the storage and MCU sectors, with a robust growth trajectory across its business segments [1][14] - The storage business accounts for 70.61% of revenue, while MCU and sensor segments contribute 23.19% and 6.09% respectively [27] - The company is positioned as the world's second-largest supplier of SPI NOR Flash and the leading domestic supplier of 32-bit Arm architecture MCUs [15][1] Summary by Sections Company Overview - Zhaoyi Innovation focuses on storage technology and has expanded into sensors and microcontrollers (MCUs), becoming a benchmark enterprise in China's semiconductor industry [14][1] - The company has a clear management structure with a technically proficient team, enhancing its strategic direction and product development [18][1] Storage Sector - The integration of AI technology is driving demand for storage chips, with a projected growth in the NOR Flash market to 28.2 billion in 2023 to $38.8 billion by 2029, with Zhaoyi Innovation being the top domestic supplier of 32-bit MCUs [4][7] - The company has launched a RISC-V MCU, which is anticipated to meet the performance demands of edge AI applications [7][4] Financial Forecast and Valuation - Revenue projections for 2025, 2026, and 2027 are estimated at 93.60 billion, 115.50 billion, and 137.50 billion respectively, with corresponding net profits of 15.32 billion, 19.51 billion, and 24.45 billion [8][10] - The company is expected to achieve a significant recovery in profitability, with a projected net profit growth of 584.21% in 2024 [27][10]