GigaDevice(SH:603986) GF SECURITIES·2024-04-23 03:02Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 102.82 CNY per share, indicating a potential upside from the current price of 74.09 CNY [5]. Core Insights - Despite a weak industry demand in 2023, the company achieved a year-on-year increase in shipment volume, with total shipments reaching 3.122 billion units, up 12.98% [2][3]. - The company's revenue for 2023 was 5.761 billion CNY, down 29.14% year-on-year, with a net profit attributable to shareholders of 161 million CNY, down 92.15% year-on-year [2]. - In Q1 2024, the company reported strong performance with revenue of 1.627 billion CNY, up 21.32% year-on-year, and a net profit of 205 million CNY, up 36.45% year-on-year, driven by increased demand in the consumer market [2][3]. Financial Performance Summary - Revenue (in million CNY): - 2022: 8,130 - 2023: 5,761 - 2024E: 7,357 - 2025E: 8,787 - 2026E: 10,061 [4] - Net Profit (in million CNY): - 2022: 2,053 - 2023: 161 - 2024E: 1,247 - 2025E: 1,803 - 2026E: 2,241 [4] - EPS (CNY per share): - 2022: 3.10 - 2023: 0.24 - 2024E: 1.87 - 2025E: 2.70 - 2026E: 3.36 [4] - Gross Margin: - 2022: 47.66% - 2023: 34.42% - 2024E: 36.5% [2][4] Market Position and Strategy - The company is focusing on market share expansion, with a significant increase in the procurement of DRAM products from Longxin Storage, expected to reach 1.2 billion USD (approximately 852 million CNY) in 2024, a year-on-year increase of 135.36% [3]. - A stock incentive plan has been announced, granting options for 6.7814 million shares, reflecting confidence in future growth [3].