GigaDevice(SH:603986) China Post Securities·2025-10-17 02:16Investment Rating - The report maintains a "Buy" rating for the company [6][8][13]. Core Insights - The company is experiencing growth in its NOR Flash market share, currently holding around 20% globally and ranking second for two consecutive years, with expectations for continued business growth driven by diverse demand from automotive, storage, computing, and industrial sectors [3][4][13]. - The niche DRAM market is expected to see a price increase due to a supply shortage, with the company's gross margin for niche DRAM products rising since Q1, indicating a positive trend for the second half of the year [4][8]. - The MCU segment is showing accelerated revenue growth, with a nearly 20% year-on-year increase in H1 2025, driven by strong downstream demand and successful new product introductions [5][7]. Summary by Sections Company Overview - The latest closing price is 202.01 CNY, with a total market capitalization of 134.8 billion CNY and a debt-to-asset ratio of 13.3% [2]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are 96 billion CNY, 119 billion CNY, and 145 billion CNY respectively, with net profits expected to be 16 billion CNY, 21 billion CNY, and 27 billion CNY [8][10][15]. Growth Drivers - The company is focusing on expanding its market presence in industrial and automotive sectors, with plans to enhance cooperation with major Tier 1 suppliers and automotive manufacturers [3][4]. - The introduction of new products in the MCU segment is expected to contribute over 10% to revenue this year, with further increases anticipated in the future [7][8]. Valuation Metrics - The company’s relative valuation shows a projected P/S ratio of 14.01 for 2025, indicating a competitive position within the market [13][14].