GigaDevice(SH:603986) Guoxin Securities·2025-11-05 14:06Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company benefits from rising storage prices, with a significant increase in net profit for Q3 2025, achieving a year-on-year growth of 63.71% and a quarter-on-quarter growth of 55.25% [1] - The demand for niche DRAM continues to grow, with the revenue share of DDR4 products exceeding 50%, and the company expects price increases to persist into Q4 of this year [2] - AI applications are driving the demand for NOR Flash, with customized storage solutions being promoted, positioning the company favorably in the edge AI inference market [2] - The MCU applications are expanding, particularly in the automotive sector, with the company establishing a dedicated automotive division and completing the development of the automotive MCU A7 series [3] - The company is expected to see a multi-dimensional growth space through its comprehensive solutions in storage, MCU, and sensors, with adjusted profit forecasts for 2025-2027 [3] Financial Forecasts and Metrics - The company is projected to achieve revenues of 57.61 billion yuan in 2023, increasing to 145.69 billion yuan by 2027, with a compound annual growth rate of 23.3% [4] - Net profit is expected to rise from 161 million yuan in 2023 to 2.704 billion yuan in 2027, reflecting a significant growth trajectory [4] - The projected PE ratios for 2025, 2026, and 2027 are 66.9, 48.9, and 38.9 respectively, indicating a favorable valuation trend [4]