GigaDevice(603986) 国元证券·2024-10-28 03:31Investment Rating - Buy rating maintained for the company [2] Core Views - The company reported robust Q3 2024 performance with revenue of RMB 5.65 billion (YoY +28.56%) and net profit attributable to shareholders of RMB 832 million (YoY +91.87%) [2] - Q3 revenue reached RMB 2.041 billion (YoY +42.83%, QoQ +2.97%) with net profit of RMB 315 million (YoY +222.55%, QoQ +0.93%) [2] - Gross margin and net margin for Q3 were 41.77% and 15.44% respectively [2] - DRAM business procurement quota increased from USD 120 million to USD 140 million, indicating strong growth potential [2] - Flash business showed sequential growth in Q3, driven by recovery in networking, security, and consumer electronics sectors [2] - MCU business is expected to grow steadily with the launch of automotive-grade MCU GD32A7 [2] Financial Projections - Revenue forecast for 2024-2025: RMB 7.545 billion and RMB 9.405 billion [2] - Net profit forecast for 2024-2025: RMB 1.179 billion and RMB 1.709 billion [2] - EPS forecast for 2024-2025: RMB 1.77 and RMB 2.56 [2] - PE ratio for 2024-2025: 50x and 35x [2] Business Segments - DRAM: Despite short-term pressure from major players clearing inventory, the company increased its procurement quota, signaling confidence in future growth [2] - Flash: Nor Flash showed sequential growth in Q3, while Nand Flash benefited from substitution effects in high-capacity applications [2] - MCU: Industrial demand recovery and new automotive-grade products are expected to drive growth [2] Market Performance - 52-week high/low price: RMB 109.35 / RMB 57.92 [4] - Current market cap: RMB 59.36 billion [4] - A-share float: 664.74 million shares [4] Historical Financials - 2023A revenue: RMB 5.761 billion (YoY -29.1%) [3] - 2023A net profit: RMB 161 million (YoY -92.2%) [3] - 2024E revenue growth: 31.0% [3] - 2024E net profit growth: 631.5% [3]