GigaDevice(SH:603986) Capital Securities·2025-07-25 07:54Investment Rating - The investment rating for the company is "Buy" [1][2] Core Views - The report emphasizes the potential growth in AI edge applications and the expected increase in niche DRAM penetration rates [2][5] - The company is positioned as the second-largest player in the Serial NOR Flash market and is actively expanding into the DRAM niche market [5] - The shift of major manufacturers towards DDR5 and HBM products is expected to enhance the company's market share in DDR4 [5] - The automotive sector is a key growth area, with the company collaborating with major domestic car manufacturers to expand its automotive NOR Flash offerings [5] - Emerging applications in AI and robotics are anticipated to drive future growth, with significant demand for storage products in these sectors [5] Financial Summary - Revenue projections for the company are as follows: - 2024: 73.56 billion yuan - 2025: 93.72 billion yuan - 2026: 116.21 billion yuan - 2027: 139.44 billion yuan - The expected revenue growth rates are 27.69% for 2024, 27.41% for 2025, 23.99% for 2026, and 19.99% for 2027 [3][6] - Net profit forecasts are: - 2024: 11.03 billion yuan - 2025: 14.59 billion yuan - 2026: 19.88 billion yuan - 2027: 25.72 billion yuan - The projected net profit growth rates are 584.21% for 2024, 32.35% for 2025, 36.23% for 2026, and 29.40% for 2027 [3][6] - The company's earnings per share (EPS) are expected to be 1.66 yuan in 2024, increasing to 3.87 yuan by 2027 [3][6] Company Overview - The company operates as an IC design firm focusing on memory chips and microcontrollers, utilizing a Fabless model [5] - In 2024, the revenue breakdown is projected as follows: - Memory chips: 51.94 billion yuan (70.61% of total revenue) - Microcontrollers: 17.06 billion yuan (23.19% of total revenue) - Sensors: 4.48 billion yuan (6.09% of total revenue) [5]