格隆汇11月27日｜长城证券研报指出，兆易创新25Q3扣非净利润环比+55%，存储周期上行带动业绩持 续向好。存储作为公司的主要营收板块，DRAM 量价齐升贡献主要增量。公司是国内领先的存储器、 微控制器和传感器芯片设计公司。公司在NORFlash、SLC NAND Flash、利基型DRAM及MCU领域均位 居全球前列，随着AI技术发展推动存储行业进入上行周期，公司成长空间广阔。预计公司2025~2027年 归母净利润分别为17.27/24.52/33.50亿元， 对应PE为74/52/38倍，给予"增持"评级。 ...

长城证券研报指出，兆易创新25Q3扣非净利润环比+55%，存储周期上行带动业绩持续向好。存储作为 公司的主要营收板块，DRAM 量价齐升贡献主要增量。公司是国内领先的存储器、微控制器和传感器 芯片设计公司。公司在NORFlash、SLC NAND Flash、利基型DRAM及MCU领域均位居全球前列，随着 AI技术发展推动存储行业进入上行周期，公司成长空间广阔。预计公司2025~2027年归母净利润分别为 17.27/24.52/33.50亿元， 对应PE为74/52/38倍，给予"增持"评级。 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company achieved a revenue of 6.832 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 20.92%. The net profit attributable to the parent company was 1.083 billion yuan, up 34.04% year-on-year. In the third quarter of 2025, the company reported a revenue of 2.681 billion yuan, a year-on-year increase of 31.40% and a quarter-on-quarter increase of 19.64%. The net profit for the third quarter was 508 million yuan, reflecting a year-on-year increase of 61.13% and a quarter-on-quarter increase of 48.97% [5][11]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 6.832 billion yuan and a net profit of 1.083 billion yuan. The third quarter alone saw revenues of 2.681 billion yuan and a net profit of 508 million yuan, with significant year-on-year and quarter-on-quarter growth [5][11]. Product and Market Position - The company maintains a strong position in the NOR Flash market, being the second largest globally. It continues to enhance its competitive edge in high-end consumer electronics while expanding into industrial, communication, and automotive applications. The company is set to achieve mass production of 45nm NOR Flash in 2025. The SLC NAND Flash is primarily based on a 24nm process, covering various applications. The self-developed DRAM products are widely applied across multiple sectors, with plans for LPDDR5 product development [11]. Growth Prospects - The company is expected to see continued growth, with projections for net profits of 1.598 billion yuan, 2.369 billion yuan, and 2.904 billion yuan for 2025, 2026, and 2027, respectively. The ongoing expansion in NOR Flash operations and the enhancement of the SLC NAND Flash process node are key drivers for this growth [11].

Core Viewpoint - The company, Gigadevice Semiconductor, reported strong financial results for Q3 2025, with significant year-on-year growth in both revenue and net profit, driven by improvements in the DRAM industry and increased demand across various sectors [1][2]. Financial Performance - For the first three quarters of 2025, Gigadevice achieved revenue of 6.832 billion yuan, a year-on-year increase of 20.92%, and a net profit of 1.083 billion yuan, up 30.18% [1][2]. - In Q3 2025 alone, the company recorded revenue of 2.681 billion yuan, representing a 31.4% increase year-on-year, and a net profit of 508 million yuan, which is a 61.13% increase [1][2]. Market Position and Product Development - Gigadevice focuses on storage chip R&D, holding leading global market shares in NOR Flash, SLC NAND Flash, and niche DRAM [1][4]. - The company is the only integrated circuit design firm globally ranked in the top ten for NOR Flash, SLC NAND Flash, niche DRAM, and MCU based on 2024 sales [4][5]. - In 2024, Gigadevice's product shipment reached a record high of 4.362 billion units, a 39.72% increase year-on-year [4]. Industry Trends - The DRAM industry is experiencing a favorable supply-demand balance, leading to price and volume increases, with demand growth in consumer, industrial, and automotive sectors [1][2]. - The company anticipates continued demand growth in 2025, particularly in niche DRAM, which is expected to remain in short supply until the end of the year [1][5]. Shareholder Activity - Notably, major shareholder Ge Weidong has been increasing his stake in Gigadevice since 2018, although he recently reduced his holdings after the stock price reached new highs [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6]. Core Insights - The company achieved a record high revenue of 6.832 billion yuan in Q3 2025, representing a year-on-year growth of 20.92%, and a net profit attributable to shareholders of 1.083 billion yuan, up 30.18% year-on-year [2][6]. - The DRAM industry supply situation continues to improve, leading to a favorable environment of rising volume and price, with significant demand growth in consumer, industrial, and automotive sectors [6]. - The company is expected to benefit from the AI-driven storage industry cycle, with major storage giants raising product prices due to increased demand for high-performance storage chips for AI applications [6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 6.832 billion yuan, a 20.92% increase year-on-year, and a net profit of 1.083 billion yuan, a 30.18% increase year-on-year [2][6]. - Q3 2025 revenue reached 2.681 billion yuan, marking a historical single-quarter high with a year-on-year growth of 31.40%, and a net profit of 508 million yuan, up 61.13% year-on-year [6]. Profitability Metrics - The gross margin for the first three quarters of 2025 was 38.59%, a decrease of 0.87 percentage points year-on-year, while the net profit margin was 16.17%, an increase of 1.44 percentage points year-on-year [6]. - In Q3 2025, the gross margin was 40.72%, down 1.04 percentage points year-on-year but up 3.71 percentage points quarter-on-quarter, with a net profit margin of 19.27%, up 3.82 percentage points year-on-year and 3.73 percentage points quarter-on-quarter [6]. Market Outlook - The report anticipates that the company will benefit from the ongoing recovery in the storage market, with expectations of price increases in the fourth quarter, particularly for server eSSD products, projected to rise by over 10% [6]. - The company is well-positioned in niche storage products, including NOR Flash and SLC NAND Flash, and is expected to gain from the improving industry landscape and rising shipments [6]. Earnings Forecast - The projected earnings per share for 2025 and 2026 are 2.42 yuan and 3.22 yuan, respectively, with corresponding price-to-earnings ratios of 102 times and 77 times [6][7].

Market Overview - The global NOR Flash market revenue is expected to exceed $2.6 billion by 2025, with applications divided into four main categories: PC (approximately 13%), automotive (approximately 21%), industrial (approximately 27%), and consumer (over 30%) [2] - Emerging consumer applications, including AI headphones, glasses, and toys, show significant demand growth, making them the most prosperous sector [2] - AI server shipments have increased significantly, with strong price support, while demand for AI PCs, automotive electronics, and industrial sectors (non-AI server) has also risen considerably [2] Competitive Landscape - Domestic AI server manufacturers are shifting from "copying" to self-replacement, with an expected replacement share of around 20% this year, indicating a clear trend of replacing Taiwanese manufacturers [2] - This shift presents new market opportunities for A-share storage chip manufacturers such as Zhaoyi Innovation, Beijing Junzheng, Fudan Microelectronics, Dongxin Co., Puran Co., Jucheng Co., and Hengsuo Co. [2] R&D Investment - Zhaoyi Innovation leads in R&D investment with 567.68 million yuan, followed by Fudan Microelectronics with 508.61 million yuan, and Beijing Junzheng with 348.28 million yuan [5] - In terms of R&D expenses as a percentage of revenue, Dongxin Co. ranks first at 30.74%, followed by Fudan Microelectronics at 27.66%, and Hengsuo Co. at 24.58% [7] R&D Personnel - Zhaoyi Innovation has the highest number of R&D personnel at 1,481, followed by Fudan Microelectronics with 1,113, and Beijing Junzheng with 760 [8] Product Development - Zhaoyi Innovation has a diverse product matrix including NOR Flash, SLC NAND Flash, and niche DRAM, covering various applications in consumer electronics, industrial, communications, and automotive sectors [9] - The company launched a dual-voltage supply SPI NOR Flash product for 1.2V SoC applications, enhancing its strategic layout in embedded storage solutions [10] - Beijing Junzheng's storage chip categories include SRAM, DRAM, and Flash, with a strong presence in automotive and industrial markets [11] - Fudan Microelectronics has a comprehensive product layout in non-volatile memory, with new SONOS platform products entering mass production [12] - Puran Co. offers a full range of EEPROM and NOR Flash products, catering to various applications including smartphones and AI devices [13] - Hengsuo Co. is expanding its product line to include DRAM memory products and has launched DDR4 products in 2025 [15] - Dongxin Co. has achieved mass production of its 1xnm flash memory products and is continuously optimizing its design and process [16]

Summary of Zhaoyi Innovation Conference Call Company Overview - Zhaoyi Innovation is positioned in the semiconductor industry, focusing on customized storage products and MCU (Microcontroller Unit) solutions. The company is leveraging its first-mover advantage in the market, particularly benefiting from the implementation of edge AI technology [2][4]. Key Points and Arguments Customized Storage Products - The customized storage product line is expected to achieve revenue growth due to its first-mover advantage and the ongoing deployment of edge AI [2][4]. - The company holds a 78% stake in Qingyun Technology and is implementing employee stock incentives to demonstrate confidence in the long-term growth of this product line [2][4]. Management Team Stability - The management team has a stable background, which is crucial for ensuring the company's long-term growth. Continuous employee stock incentives are in place to motivate core technical personnel [5]. R&D Investment and Outcomes - The company has been expanding its R&D personnel and increasing its patent portfolio, which provides a competitive edge for future business development. Revenue and profit are expected to recover starting in 2024, reflecting a rebound in demand and an increase in market share across various product lines [6]. Norflash Market Outlook - The global Norflash market is currently valued at approximately $3 billion, with Zhaoyi Innovation holding the second-largest market share. The market is projected to grow to $5 billion, driven by increased demand from wearable devices, AI PCs, and industrial applications [7]. DRAM Business Development - The global DRAM market is valued at around $100 billion, with niche DRAM accounting for about 10% of this market. Zhaoyi Innovation is expected to maintain high growth rates over the next two to three years due to the exit of major competitors [8]. Competitive Advantages in DRAM - Zhaoyi Innovation's DRAM product line benefits from advanced process nodes, resulting in lower costs compared to competitors. The exit of major players has led to price increases for DDR4 and DDR3, improving gross and operating margins. The company anticipates generating over $1 billion in revenue from this segment [9]. Collaboration with Changxin Storage - The partnership with Changxin Storage is structured through equity investment and contractual agreements, ensuring ongoing collaboration in the niche DRAM market. This relationship is expected to support Zhaoyi Innovation's growth despite concerns over market share competition [10]. SLC NAND Flash Development - Zhaoyi Innovation is advancing in the SLC NAND Flash sector, with process nodes reaching 24nm and plans to move to 19nm. The focus is on the automotive sector to meet the growing demand for high-reliability storage solutions [11][12]. Importance of Customized Storage - Customized storage is identified as a critical future direction, with products designed to enhance data transfer capabilities and efficiency, particularly in cloud applications. Zhaoyi Innovation is leading in this area, ahead of competitors by at least one generation [13]. MCU Product Line Outlook - The MCU market is currently at a price bottom, but growth in industrial and automotive sectors is expected to provide stable revenue. The company covers 61 categories of MCU, including automotive-grade products, and is expanding its product line through acquisitions [14]. Future Development Focus - Key areas to watch include niche DRAM and customized storage, both projected to exceed $1 billion in revenue, significantly contributing to the company's revenue certainty [15]. - As a leading domestic player in storage and MCU, Zhaoyi Innovation aims to maintain growth through strategic goals, client development, and international market expansion [16].

Investment Rating - The report initiates coverage with a "Buy" rating for the company, citing a 2025 PE of 70X, which is below the average of comparable companies, indicating a potential valuation growth of 24% [8][6][9]. Core Insights - The company is recognized as a leading domestic multi-chip design firm, with significant growth opportunities in AI and automotive electronics, which are reshaping its growth trajectory [7][8]. - The company has a diversified product portfolio, including NOR Flash, SLC NAND, DRAM, and MCU, positioning it among the top ten integrated circuit design companies globally [19][17]. - The report highlights the expected revenue growth driven by AI applications and automotive electronics, with projected revenues of 93.76 billion, 110.34 billion, and 129.44 billion yuan for 2025-2027, reflecting growth rates of 27.5%, 17.7%, and 17.3% respectively [9][6]. Financial Data and Profit Forecast - Total revenue for 2024 is projected at 7,356 million yuan, with a year-on-year growth rate of 27.7%. For 2025, the revenue is expected to reach 9,376 million yuan, with a growth rate of 27.5% [6]. - The net profit attributable to shareholders is forecasted to be 1,103 million yuan in 2024, increasing to 1,526 million yuan in 2025, representing a growth rate of 38.4% [6]. - The gross margin is expected to improve from 38.0% in 2024 to 40.3% by 2027, indicating a positive trend in profitability [6][9]. Market Position and Product Strategy - The company is strategically positioned in the specialized storage market, focusing on NOR Flash, SLC NAND, and niche DRAM, which are expected to see increased demand due to the rise of AI and automotive applications [31][33]. - The report emphasizes the company's strong foothold in the NOR Flash market, which is experiencing a resurgence as overseas competitors withdraw, allowing domestic firms to capture market share [39][46]. - The automotive sector is highlighted as a significant growth driver, with the company’s products meeting the stringent requirements for reliability and performance in automotive applications [37][53]. Growth Catalysts - The anticipated growth in AI applications, particularly in edge devices, is expected to drive demand for the company's SPI NOR Flash products, which are critical for program storage and high-speed data retrieval [56][39]. - The report notes that the company's strategic partnerships and investments in DRAM and NAND technologies position it well to capitalize on market opportunities as traditional suppliers exit the market [11][60]. - The automotive industry's shift towards electrification and automation is projected to create substantial demand for the company's automotive-grade storage solutions [37][53].

Investment Rating - The report initiates coverage with a "Buy" rating for the company, citing its leadership in diversified chip design and a projected PE of 70X for 2025, which is below the average of comparable companies, indicating a potential valuation growth of 24% [11][10]. Core Insights - The company is recognized as a global leader in diversified chip design, ranking among the top ten integrated circuit design firms in the NOR Flash, SLC NAND Flash, niche DRAM, and MCU sectors based on 2024 sales [10][24]. - The demand for AI toys, humanoid robots, and other edge devices is expected to surge in 2025, significantly boosting the need for the company's SPI NOR Flash products, which are essential for program storage and high-speed data reading [10][69]. - The company is strategically positioned to capture market share in the DRAM sector as original manufacturers exit, with a robust product lineup and strong partnerships with domestic DRAM wafer manufacturers [10][73]. - The automotive electronics sector is a key focus, with the company offering a full range of automotive-grade products and actively pursuing certifications to support advanced driving systems [10][65]. Financial Data and Profit Forecast - The company anticipates total revenue of 9,376 million yuan in 2025, reflecting a year-on-year growth rate of 27.5% [9]. - The projected net profit attributable to shareholders for 2025 is 1,526 million yuan, with a significant year-on-year growth of 38.4% [9]. - The gross margin is expected to stabilize around 38.3% in 2025, with a gradual increase to 40.3% by 2027 [12]. Market Position and Growth Drivers - The specialized storage market is entering an upward cycle, driven by improvements in supply-demand dynamics and the increasing demand for AI applications, with the market projected to grow at a CAGR of 7.1% from 2025 to 2029 [43][48]. - The company is leveraging its technological advancements in NOR Flash and SLC NAND to meet the growing requirements of AI and automotive applications, positioning itself for substantial growth in these sectors [10][50]. - The report highlights the company's competitive edge in the SPI NOR Flash market, emphasizing its ability to provide high-performance products tailored for various applications, including AI and automotive electronics [10][64].

Core Viewpoint - The storage industry is recovering, with leading companies like Zhaoyi Innovation reporting significant revenue and profit growth, driven by increased demand in various sectors and strategic market positioning [1][6][10]. Group 1: Financial Performance - Zhaoyi Innovation's revenue for the first half of 2025 reached 4.15 billion yuan, a year-on-year increase of 15%, while net profit attributable to shareholders was 575 million yuan, up 11.31% [1]. - The company's storage chip revenue in 2024 was 5.194 billion yuan, accounting for 70.6% of total revenue, with MCU business contributing over 90% of revenue [6][10]. - The company experienced a revenue decline from 8.13 billion yuan in 2022 to 5.761 billion yuan in 2023, followed by a recovery to 7.356 billion yuan in 2024 [10]. Group 2: Market Position and Global Expansion - Zhaoyi Innovation is the only company globally to rank in the top ten across four core integrated circuit design areas, including NOR Flash and MCU [1]. - The company has established a global sales network across Asia, Europe, and North America, with overseas revenue accounting for 77.51% in 2024 and 69.51% in the first half of 2025 [3][11]. - The company is recognized as the world's leading fabless Flash supplier, with significant contributions from automotive-grade products [3][4]. Group 3: Industry Trends and Strategic Moves - The company is capitalizing on the exit of major players like Samsung and Micron from niche storage markets, creating opportunities for domestic manufacturers [8]. - Zhaoyi Innovation is expanding its overseas presence, with plans for an H-share listing and the establishment of a new international headquarters in Singapore [4][5]. - The company is focusing on local innovation to shorten the time from product development to market, enhancing its competitive edge in various sectors, including automotive and AI [5][7]. Group 4: Customer Base and Product Diversification - The customer base of Zhaoyi Innovation spans consumer electronics, automotive, and industrial control sectors, reflecting a diversified revenue stream [7][9]. - The company has established itself as a key supplier for major brands in the consumer electronics space and is increasingly penetrating the automotive sector [6][9]. - The demand for storage solutions in AI applications is rising, with the company poised to meet the needs of new AI-enabled devices [7].