Giantec Semiconductor(SH:688123) Minsheng Securities·2024-02-29 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][13]. Core Insights - The company reported a revenue of 704 million yuan in 2023, a decrease of 28.17% year-on-year, and a net profit of 99 million yuan, down 72.08% year-on-year [13]. - The fourth quarter showed a revenue improvement with 203 million yuan, a quarter-on-quarter increase of 9.67%, driven by improved inventory levels among downstream memory module manufacturers and increased penetration of DDR5 [13]. - The report highlights that the decline in DDR4 inventory is nearing its end, and the penetration of DDR5 is expected to accelerate, particularly with upcoming product launches from Intel [13]. - The company's EEPROM product line is expected to see stable growth due to demand from the consumer electronics and industrial markets, with additional growth from automotive-grade EEPROM and OIS products [13]. - The forecast for net profit from 2023 to 2025 is 99 million, 298 million, and 458 million yuan respectively, with corresponding PE ratios of 79, 26, and 17 [13]. Financial Summary - The company’s total revenue is projected to grow from 980 million yuan in 2022 to 1,593 million yuan in 2025, with a growth rate of 80.2% in 2022, followed by declines and recoveries in subsequent years [4][6]. - The net profit margin is expected to improve from 36.08% in 2022 to 28.74% in 2025, indicating a recovery trend [6][15]. - The report indicates a significant drop in net profit in 2023, with a forecasted recovery in the following years [13][15].