兆易创新：外延收购补齐产品矩阵，内生增强汽车MCU与存储产品

Investment Rating - The report maintains a "Outperform" rating for Gigadevice Semiconductor (603986 SH) [1][3] Core Views - Gigadevice achieved YoY and QoQ growth in revenue and net profit in 3Q24, with revenue reaching 2 041 billion yuan (YoY +42 83%, QoQ +2 97%) and net profit attributable to parent company reaching 315 million yuan (YoY +222 55%, QoQ +0 93%) [1] - The company's product portfolio includes memory, microcontrollers (MCUs), and sensors, with memory products divided into SPI NOR, SLC NAND, and DRAM [1] - Gigadevice plans to acquire 38 07% stake in Suzhou Saixi for 316 million yuan, which specializes in lithium battery protection chips and power management chips, with revenue of 134 million yuan and net profit of 34 92 million yuan in 1H24 [1] - The company is increasing its DRAM inventory and adjusting its fundraising project to focus on LPDDR5, with expected procurement volume from ChangXin Memory increasing to 995 million yuan in 2024 [1] - Gigadevice plans to invest 1 2 billion yuan in automotive MCU R&D and industrialization, aiming to capitalize on the growing demand for automotive semiconductors [1] Financial Performance - In 3Q24, Gigadevice's gross margin reached 41 77% (YoY +5 4pct, QoQ +3 6pct) [1] - The company's revenue is expected to grow from 7 573 billion yuan in 2024E to 11 009 billion yuan in 2026E, with net profit projected to increase from 1 140 billion yuan in 2024E to 2 047 billion yuan in 2026E [2] - Earnings per share (EPS) is forecasted to rise from 1 71 yuan in 2024E to 3 07 yuan in 2026E [2] - ROE is expected to improve significantly from 8 5% in 2024E to 27 5% in 2026E [2] Industry Trends - The automotive MCU market is expected to grow, with the average value per vehicle potentially exceeding $200 as MCU chips continue to evolve [1] - The demand for DRAM products is recovering moderately, with supply tightening in the niche DRAM market due to increased focus on high-end products like HBM and DDR5 by overseas manufacturers [1] Strategic Initiatives - Gigadevice is enhancing its product matrix through both external acquisitions and internal R&D, particularly in automotive MCUs and advanced memory products [1] - The company is adjusting its fundraising projects to better align with market cycles, shifting focus from LPDDR3 to LPDDR5 development [1]