GigaDevice(SH:603986) Guoxin Securities·2025-08-27 14:47Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company achieved a 45% quarter-on-quarter growth in net profit attributable to shareholders in Q2 2025, driven by diversified product offerings including memory, microcontrollers, and sensors. The implementation of consumer subsidies and ongoing AI demand in sectors like PCs, servers, and automotive electronics contributed to this growth [1][4] - The company's revenue for Q2 2025 reached 2.241 billion yuan, representing a year-on-year increase of 13.09% and a quarter-on-quarter increase of 17.40%. The non-recurring net profit was 321 million yuan, with a year-on-year growth of 10.66% and a quarter-on-quarter growth of 43.21% [1] - The gross margin for the company was 37.01%, showing a slight decline compared to the previous year and quarter [1] Summary by Sections Memory Products - In the first half of 2025, the company's memory chip revenue was 2.845 billion yuan, accounting for 69% of total revenue, with a year-on-year growth of 9.2%. The company successfully achieved large-scale production of 45nm node SPI NOR Flash, and the share of niche DRAM DDR4 products has increased [2] - The demand for Flash memory is supported by consumer subsidies and seasonal demand, while the exit of overseas competitors has led to improved pricing and volume for niche DRAM products [2] Microcontrollers (MCU) - The MCU revenue in the first half of 2025 was 959 million yuan, representing 23.1% of total revenue and a year-on-year growth of 19.1%. The growth was driven by demand from consumer and industrial sectors, with significant contributions from networking and automotive applications [3] - The company has successfully launched over 700 MCU models across 64 series, with a focus on high-performance automotive MCUs [3] Sensors and Analog Chips - Sensor revenue remained stable at 193 million yuan, accounting for 4.65% of total revenue, with fingerprint recognition products being a key supplier for various smartphone models [3] - The analog chip segment generated 152 million yuan in revenue, with over 700 models developed, integrating with MCU solutions [3] Financial Forecast and Valuation - The company is expected to achieve net profits of 1.525 billion yuan, 2.005 billion yuan, and 2.508 billion yuan for 2025, 2026, and 2027 respectively. The current stock price corresponds to PE multiples of 69, 53, and 42 for the respective years [4][5]