GigaDevice(SH:603986) SINOLINK SECURITIES·2024-04-21 03:30Investment Rating - The report maintains a "Buy" rating for the company, expecting significant growth in the next 6-12 months [4][10]. Core Insights - The company has shown a recovery from a cyclical low, with revenue and profit significantly improving in Q1 2024 compared to Q4 2023 [3][4]. - The company achieved a revenue of 5.761 billion RMB in 2023, a decrease of 29.14% year-on-year, but reported a revenue increase of 21.32% in Q1 2024 [3][4]. - The net profit for 2023 was 161 million RMB, down 92.15% year-on-year, but rose to 205 million RMB in Q1 2024, marking a 36.45% increase [3][4]. Revenue and Profit Analysis - The company experienced a decline in product prices due to weak terminal market demand and intense competition, leading to a drop in gross margin from 47.7% to 34.4% in 2023 [4]. - In Q1 2024, the gross margin improved to 38.2%, reflecting a recovery in profitability during the traditional off-season [4]. - The NOR Flash product line saw a record shipment of 2.533 billion units in 2023, achieving a 16.15% growth, and is expected to continue steady growth in 2024 [4]. Product Performance - The company has expanded its SLC NAND Flash offerings across various sectors, achieving significant shipment growth in 2023 [4]. - The MCU segment faced challenges in 2023 but showed signs of stabilization in Q4, with over 1.5 billion units shipped by the end of 2023 [4]. Financial Forecasts - The report adjusts the company's net profit forecasts for 2024-2026 to 1.03 billion, 1.517 billion, and 1.935 billion RMB respectively, with corresponding P/E ratios of 48, 33, and 26 [4][8].