Giantec Semiconductor(SH:688123) AVIC Securities·2024-05-29 13:30Investment Rating - The investment rating for the company is "Buy" with an expectation of returns exceeding 10% relative to the CSI 300 index over the next six months [2][23]. Core Views - The report highlights a significant recovery in downstream market demand and an optimization of product structure, leading to a substantial improvement in profitability for Q1 2024 [4]. - The company achieved a revenue of 247 million yuan in Q1 2024, representing a year-on-year increase of 72.49% and a quarter-on-quarter increase of 22.52% [4]. - The net profit attributable to shareholders for Q1 2024 was 51 million yuan, showing a year-on-year growth of 138.05% and a quarter-on-quarter growth of 184.76% [4]. Financial Performance Summary - In 2023, the company reported total revenue of 703.48 million yuan, a decrease of 28.25% year-on-year, and a net profit of 100.36 million yuan, down 71.63% year-on-year [2][9]. - The gross margin for 2023 was 46.59%, a decline of 20.44 percentage points compared to the previous year [2]. - The company expects revenues of 1.045 billion yuan, 1.379 billion yuan, and 1.695 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 339.75 million yuan, 479.13 million yuan, and 627.20 million yuan [5][9]. Product Line Performance - The SPD product line saw a significant recovery in sales due to improved inventory levels among downstream memory module manufacturers and increased penetration of DDR5 memory modules [4]. - The industrial-grade EEPROM and voice coil motor driver chip products benefited from successful product iterations, leading to rapid growth in shipment volumes [4]. - The automotive-grade EEPROM products experienced high-speed growth in shipments, particularly in key overseas markets such as Europe, Korea, and Japan [4]. Future Projections - The company anticipates a revenue growth rate of 48.56% in 2024, followed by 32.00% in 2025 and 22.89% in 2026 [9]. - The projected gross margin is expected to improve to 58.42% in 2024, 60.11% in 2025, and 61.62% in 2026 [9].