GigaDevice(SH:603986) Great Wall Securities·2024-04-24 06:32Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company's financial performance shows significant improvement in Q1 2024, with a revenue of 1.627 billion yuan, a quarter-on-quarter increase of 19.1%, and a net profit of 204.79 million yuan, marking a return to profitability [1][7] - The report highlights a rebound in the average selling price (ASP) of niche storage products, which is expected to drive revenue growth in the storage chip segment [2][3] - The company is focusing on three main product lines: storage chips, microcontrollers (MCUs), and sensors, which are expected to drive future growth [3] Financial Summary - For 2023, the company reported a revenue of 5.761 billion yuan, a year-on-year decrease of 29.14%, and a net profit of 161 million yuan, down 92.15% year-on-year [1][9] - The gross margin for 2023 was 34.42%, reflecting a decline of 13.24 percentage points year-on-year due to falling product prices [1][9] - The projected revenues for 2024, 2025, and 2026 are 7.310 billion yuan, 8.653 billion yuan, and 9.909 billion yuan, respectively, indicating a recovery trend [1][12] Product Performance - In 2023, the storage chip segment generated revenue of 4.077 billion yuan, down 16% year-on-year, with a gross margin of 32.99% [2] - The MCU segment saw a significant revenue decline of 53% to 1.317 billion yuan, primarily due to increased competition and a 44% drop in ASP [2] - The sensor segment's revenue was 352 million yuan, down 19% year-on-year, but the company gained market share in this area [2] Future Outlook - The company plans to launch samples of the 8Gb DDR4 in 2024, which is expected to contribute to revenue growth in the storage chip sector [2] - The company has announced a stock option incentive plan, aiming for revenue targets of 7.294 billion yuan, 8.620 billion yuan, 9.800 billion yuan, and 11.800 billion yuan for 2024 to 2027, respectively [2] - The projected net profits for 2024, 2025, and 2026 are 1.045 billion yuan, 1.412 billion yuan, and 1.845 billion yuan, respectively, with corresponding P/E ratios of 62.3, 46.1, and 35.3 [3][12]