GigaDevice(SH:603986) GOLDEN SUN SECURITIES·2025-10-29 02:26Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown significant growth in Q3 2025, with a revenue increase of 31.4% year-on-year and a net profit increase of 61.1% year-on-year, driven by price increases in niche storage products and a recovery in downstream demand [1] - The DRAM market is experiencing price increases due to strong demand from AI applications and a recovery in non-AI applications, with an expected price increase of 8-13% for conventional DRAM in Q4 2025 [2] - NOR Flash demand is steadily increasing, with prices expected to rise moderately over a longer period due to stable growth in total bit demand and supply constraints [3] - The company has a significant advantage in the customized storage sector, with successful project developments and strong partnerships with strategic suppliers [4] - Revenue forecasts indicate substantial growth, with expected revenues of 93.6 billion, 114.6 billion, and 135.5 billion yuan for 2025, 2026, and 2027 respectively, alongside net profits of 14.6 billion, 19.4 billion, and 23.8 billion yuan for the same years [5] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 6.83 billion yuan, a year-on-year increase of 20.9%, and a net profit of 1.08 billion yuan, a year-on-year increase of 30.2% [1] - In Q3 2025 alone, the company reported a revenue of 2.68 billion yuan and a net profit of 510 million yuan, marking a quarter-on-quarter increase of 19.6% and 49.0% respectively [1] Market Trends - The DRAM market is seeing a shift as major manufacturers reduce production of older technologies, leading to price increases for DDR4 products, which now account for over 60% of the company's revenue [2] - The NOR Flash market is characterized by stable demand growth, with supply constraints expected to maintain price increases over a longer period [3] Strategic Positioning - The company is well-positioned in the customized storage market, leveraging early advantages and strong collaborations with suppliers to ensure capacity and process advantages [4] - The company is expected to maintain a strong market share in the NOR Flash sector, with a projected revenue contribution of around 15% from 45nm NOR Flash products [3] Future Outlook - The company is projected to achieve significant revenue growth in the coming years, with a compound annual growth rate (CAGR) of 27.3% from 2024 to 2025 [5] - The expected earnings per share (EPS) for 2025 is projected to be 2.19 yuan, with a P/E ratio of 112.8 [11]