GigaDevice(SH:603986) GOLDEN SUN SECURITIES·2025-06-12 01:23Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5]. Core Views - The company is positioned as a leader in the semiconductor industry, with a diversified product portfolio covering storage, MCU, and sensors. It is expected to benefit significantly from the AI trend and domestic substitution [12][19]. - The company's revenue and net profit have shown a strong recovery in 2024, with revenue reaching 7.36 billion yuan, a year-on-year increase of 27.69%, and net profit rising to 1.10 billion yuan, up 584.21% [30]. Summary by Sections 1. Company Overview - The company has a comprehensive layout in "storage + MCU + sensors," continuously deepening and expanding its product lines. It operates under a Fabless model, focusing on integrated circuit design and outsourcing manufacturing processes [19][22]. 2. Storage Market Dynamics - The storage market is witnessing a shift towards niche storage solutions, driven by AI at the edge, which is increasing customized demand. The company ranks second globally in NOR Flash market share, benefiting from the growing market size due to AI applications [2][12]. - The SLC NAND market is becoming more competitive, with domestic manufacturers like the company gaining traction as international giants shift focus to mainstream NAND markets. The company holds a 4% market share in SLC NAND [3][12]. - The DRAM market is evolving as major manufacturers exit DDR3 and DDR4 production, allowing domestic firms to fill the gap and achieve domestic substitution. The company is well-positioned to capitalize on this trend [4][12]. 3. MCU and Sensor Segments - The company is the leading supplier of 32-bit Arm® MCU in China, with a robust product matrix and significant growth in the automotive sector. The global MCU market is expected to grow at a CAGR of 5.3% from 2023 to 2028 [10][12]. - In the sensor market, the company leads in touch and fingerprint sensor products, which are crucial for the IoT ecosystem. The global smart sensor market is projected to reach $57.25 billion by 2025 [11][12]. 4. Financial Projections - The company is expected to achieve revenues of 9.36 billion yuan in 2025, with a year-on-year growth of 27.3%. Net profit is projected to reach 1.46 billion yuan, reflecting a growth of 32.5% [12][14].