GigaDevice(SH:603986) CSC SECURITIES (HK) LTD·2024-05-31 07:30Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 100 CNY per share [1][3]. Core Insights - The storage chip market is expected to see a positive trend in the second half of 2024, with significant earnings elasticity for the company [3][4]. - The company is positioned as a leader in the domestic storage sector, benefiting from domestic import substitution and growth in semiconductor demand [4][5]. - The report anticipates a recovery in the storage industry, with expectations for both volume and price increases in products like NOR Flash in the latter half of 2024 [4][5]. Summary by Sections Company Overview - The company operates in the electronics industry, with a current A-share price of 82.38 CNY as of May 30, 2024, and a market capitalization of 54.802 billion CNY [1][2]. - The major shareholders include Zhu Yiming, holding 6.86% of shares [1]. Product Composition - The company's product sales are primarily composed of storage chips (64%), microcontrollers (29%), sensors (6%), and others (1%) [2]. Financial Performance - In Q1 2024, the company reported revenue of 1.63 billion CNY, a year-over-year increase of 21.3%, and a net profit of 200 million CNY, up 36.5% year-over-year [4][5]. - The earnings per share (EPS) for 2024 is projected to be 1.77 CNY, with net profits expected to grow significantly over the next few years [5][6]. Earnings Forecast - The company is expected to achieve net profits of 1.18 billion CNY in 2024, 1.78 billion CNY in 2025, and 2.28 billion CNY in 2026, reflecting substantial growth rates [5][6]. - The price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 47, 31, and 25, respectively, indicating a recovery phase in the industry [5][6].