Giantec Semiconductor(688123) 华创证券·2024-09-28 23:36Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 63.3 CNY based on a 30x PE valuation for 2024 [2][3][6]. Core Insights - The company is positioned to benefit significantly from the increasing penetration of DDR5 memory modules and the recovery of the semiconductor market, with projected revenues of 1.15 billion CNY in 2024, growing to 1.99 billion CNY by 2026 [3][6]. - The company has established itself as a leading global EEPROM chip design firm, with a diverse product portfolio that includes storage chips, motor driver chips, and smart card chips [1][11]. - The report highlights the company's strategic partnerships, particularly with Changxin Technology, to develop DDR5 SPD products, which positions it favorably in the market [4][5]. Summary by Sections 1. Company Overview - The company was founded in 2009 and has become a global leader in EEPROM chip design, providing a range of integrated circuit products and solutions [1][11]. - The company has established partnerships with major brands such as Samsung, Xiaomi, and Tesla, enhancing its market presence [1][11]. 2. EEPROM Market Trends - The global EEPROM market is expected to grow from 881 million USD in 2022 to 1.48 billion USD by 2031, driven by demand in smartphones, automotive electronics, and medical devices [1][11]. - The company is focusing on expanding its presence in the automotive sector, where it has developed a mature product line for automotive-grade EEPROM chips [1][11]. 3. DDR5 Memory Module Penetration - The report anticipates that the penetration rate of DDR5 memory modules will exceed 50% in the global PC and server markets by 2024, driven by AI trends and hardware upgrades [1][4]. - The company is one of the few with a complete SPD product lineup for DDR5, giving it a competitive edge in the market [4][5]. 4. Product Development and Growth - The company has made significant advancements in its NOR Flash products, achieving over 100 million units shipped by the end of 2023, with a doubling of shipments in Q2 2024 [1][4]. - The company is also developing integrated motor driver chips and smart card chips, expanding its product offerings in high-demand markets [1][4]. 5. Financial Projections - The company is expected to see a substantial recovery in profitability, with net profits projected to grow from 332 million CNY in 2024 to 623 million CNY by 2026 [3][6]. - The gross margin is expected to improve significantly, reflecting the company's focus on high-value products and market recovery [19][21].