GigaDevice(SH:603986) Bank of China Securities·2026-01-23 10:45Investment Rating - The report maintains an "Accumulate" rating for the company [2][4][6]. Core Views - The company is expected to achieve steady revenue and net profit growth in 2025, driven by the ongoing niche storage cycle and advancements in AI storage solutions [4][9]. - The report highlights the company's proactive approach in customizing storage products for edge AI applications, positioning it well to capitalize on emerging market trends [9]. Financial Summary - The company is projected to generate revenues of approximately RMB 92.03 billion, RMB 120.41 billion, and RMB 160.16 billion for the years 2025, 2026, and 2027, respectively [6][8]. - The expected net profits for the same years are RMB 16.10 billion, RMB 28.35 billion, and RMB 36.18 billion, indicating significant growth rates of 46.1% and 76.0% for 2025 and 2026, respectively [6][8]. - The report anticipates a substantial increase in the company's earnings per share (EPS), projected at RMB 2.31, RMB 4.07, and RMB 5.19 for 2025, 2026, and 2027, respectively [8][10]. Market Performance - The company's stock has shown strong performance, with absolute returns of 121.3% over the past 12 months, significantly outperforming the Shanghai Composite Index [2][3]. - The report notes a positive market sentiment towards the company's stock, with a relative performance of 93.0% against the index over the same period [3]. Industry Outlook - The report emphasizes the ongoing uptrend in the storage industry, particularly in niche storage segments, which is expected to continue benefiting the company [4][9]. - The demand for DRAM products is projected to rise, with significant price increases noted in the market, particularly for DDR4 products, which have seen a price surge of 369% from July 2025 to January 2026 [9].