Giantec Semiconductor(688123) 北京韬联科技·2024-06-06 02:30Investment Rating - The report indicates that the company is rated positively as a leading player in the EEPROM market, being the third largest globally [21]. Core Insights - The company has seen significant growth in its non-volatile memory chip business, particularly in the EEPROM sector, with a nearly threefold increase in net profit in the first quarter of 2024 [2][6]. - The demand for AI PCs is expected to boost the storage chip market, with a projected increase in memory capacity by at least 50%, benefiting EEPROM and NOR flash products [20][32]. Financial Performance - In Q1 2024, the company reported total revenue of 247 million yuan, a year-on-year increase of 72.49%, and a net profit of 51 million yuan, up 138.05% [6]. - The company's revenue for 2023 was 703 million yuan, a decline of 28.25% compared to the previous year, with a net profit of 100 million yuan, down 71.63% [24]. Product Development and Market Position - The company has developed a new generation of DDR5 memory modules in collaboration with another tech firm, enhancing its product offerings in the memory chip sector [3]. - The company has achieved significant sales in its NOR Flash products, with over 56 million units shipped in Q1 2024, representing nearly 70% of its total sales for 2023 [33]. Market Trends and Demand - The report highlights a recovery in downstream market demand, contributing to the company's improved performance in early 2024 [20]. - The company is actively expanding its product lines in automotive electronics, with a full range of A2 grade EEPROM products certified for automotive applications [30][31].