A: Basic Information of the Company
GigaDevice Technology Inc.
Stock Code: 603986.SH
Stock Abbreviation: GigaDevice
Region: Shanghai
Industry: Semiconductor Industry
Establishment Date: April 6, 2005
Issue Price: RMB 23.26 per share
Founder: Zhu Yiming
Company Website: http://www.gigadevice.com
Registered Address: China, Shanghai
Business Scope: Research and development of microelectronics products and technologies, computer software and hardware, computer system integration, telecommunications equipment, handheld mobile terminals, etc.
Company Profile: GigaDevice, established in 2005, is a leading fabless semiconductor company committed to the development of advanced memory technologies and IC solutions. The company went public on the Shanghai Stock Exchange in August 2016. With branches and offices in Beijing, Shanghai, Shenzhen, Hefei, Xi'an, Chengdu, Suzhou, Hong Kong, the United States, South Korea, Japan, the United Kingdom, Germany, Singapore, and other countries and regions, the company's marketing network covers the globe, providing high-quality and convenient localized support services to customers worldwide. The company's core product lines include FLASH, 32-bit general-purpose MCUs, intelligent human-machine interaction sensor chips, analog products, and overall solutions. Known for their "high performance, low power consumption," the company's products are recognized for their technological strength and serve a wide range of industries including industrial, automotive, computing, consumer electronics, IoT, mobile applications, network and telecommunications.
B: Value Investment Analysis
Key Financial Indicators:
According to the latest financial report, GigaDevice achieved a revenue of 5.65 billion yuan in the first three quarters of 2024, a year-on-year increase of 28.56%; the net profit attributable to the shareholders of the listed company was 832 million yuan, a year-on-year increase of 91.87%; the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was 777 million yuan, a year-on-year increase of 128.31%; the basic earnings per share were 1.26 yuan per share. In the third quarter, the net profit was 315 million yuan, a year-on-year increase of 222.55%.
Company Investment Value:
As a domestic leader in the design of storage chips, GigaDevice has a wide range of applications in various fields such as industrial, consumer electronics, automotive, IoT, computing, mobile applications, and network and telecommunications. The company holds a significant market share in the NOR Flash market, ranking second globally and first in China with a cumulative shipment exceeding 23.7 billion pieces. Moreover, the company has made notable achievements in the MCU field, with its GD32 series of MCU products having a cumulative shipment exceeding 1.57 billion pieces, and continues to make progress in wireless connectivity, ultra-low power consumption, and automotive-grade products.
Company Growth Potential:
The growth potential of GigaDevice mainly stems from its continuous R&D and market expansion in the three major fields of memory, microcontrollers, and sensors. With the rapid development of emerging technologies such as 5G, IoT, and AI, the demand for semiconductors continues to expand, providing the company with broad market opportunities. At the same time, through continuous technological innovation and market expansion, the company has occupied an important position in the global semiconductor market, with a high market share and brand influence.
Industry Support Policies:
The integrated circuit is an important part of China's scientific and technological development and is the foundation for the intelligent and digital transformation of various industries in China. According to China's national economic plans from the "Eighth Five-Year Plan" to the "14th Five-Year Plan," the state's support policies for the integrated circuit industry have evolved from "strengthening development" to "focusing on development" and then to "strategically developing frontier areas." The "14th Five-Year Plan" is a crucial five years for China's integrated circuit industry to consolidate its foundation and strive for greater progress. The "14th Five-Year Plan" and policies of various localities in China also play an important role in promoting the development of the integrated circuit industry.
International Policy Risks:
The current international policy environment for the semiconductor industry is complex and changing, with rising trade protectionism posing uncertainties to the industry's development. GigaDevice needs to closely monitor changes in international policies and adopt corresponding measures to mitigate potential risks.
A.Top's Investment Review:
GigaDevice, as a domestic leader in semiconductor design, has strong competitiveness and market influence in the fields of storage chips, microcontrollers, and sensors. With the continuous growth of the global semiconductor market and the application of emerging technologies, the company's business scale and market share are expected to further increase, bringing considerable returns to investors.