GigaDevice(SH:603986) Bank of China Securities·2025-10-29 07:51Investment Rating - The report maintains an "Accumulate" rating for the company [2][4]. Core Views - The company has shown steady growth in revenue and net profit for the first three quarters of 2025, benefiting from an upward trend in the storage industry cycle and a forward-looking layout in edge AI storage [4][9]. - The report highlights the company's diversified product lines, which are expected to further enhance growth potential [6][9]. Financial Summary - For 2025, the company is projected to achieve revenues of RMB 92.04 billion, with a net profit of RMB 15.95 billion, corresponding to a PE ratio of 103.3 times [6][8]. - The company reported a revenue of RMB 68.32 billion for the first three quarters of 2025, a year-on-year increase of 20.92%, and a net profit of RMB 10.83 billion, up 30.18% year-on-year [9]. - The gross margin for the first three quarters of 2025 was 38.59%, with a slight decrease of 0.87 percentage points year-on-year [9]. Market Performance - The company's stock has performed exceptionally well, with a year-to-date increase of 139.8%, outperforming the Shanghai Composite Index by 117.5% [3][9]. - The average daily trading volume over the past three months was RMB 7,325.70 million, indicating strong market interest [3]. Industry Outlook - The DRAM industry is experiencing improved supply-demand dynamics, which is expected to benefit the company in 2025, particularly with the ongoing price increases for niche DRAM products [9]. - The report notes that the company is well-positioned to capitalize on the growing demand in various sectors, including consumer, industrial, and automotive, due to its extensive product matrix [9].