根据公告内容，上半年存储产品线：1）FLASH：围绕大容量、高性能、低功耗/低电压、小封装、高安全、高可靠、车规级等技术需求，持续丰富产品矩阵、提升技术能级；SPI NOR 车规产品2Mb~2Gb 容量全线铺齐，55nm 工艺节点全系量产并迭代制程；NAND38nm 和24nm 全面量产，24nm 为主，覆盖1Gb~8Gb；2）DRAM：Incidents:
The company released its 2024 semi-annual report. Revenue for the first half of the year was 3.609 billion yuan, up 21.69% year on year; net profit to mother was 0.517 billion yuan, up 53.88% year on year; non-net profit deducted from mother was 0.473 billion yuan, up 71.87% year on year.
Storage product capabilities are platformized, and there are highlights in various fields such as automobiles, Netcom, and TV
According to the announcement, storage product lines in the first half of the year: 1) FLASH: Continuously enriching the product matrix and improving technical energy levels around technical requirements such as large capacity, high performance, low power/low voltage, small package, high safety, high reliability, and vehicle grade; SPI NOR vehicle specification products are fully equipped with 2Mb to 2Gb capacity, and all 55nm process nodes are mass-produced and iterated; 2) DRAM:
DDR4 and DDR3L products are widely used in the fields of network communication, television, set-top boxes, industry, smart homes, etc., and have covered major customer groups such as network communication and TV. In the automotive market, shipments of the company's automotive flash memory products have maintained good growth.
The MCU product matrix continues to be rich, and demand for photovoltaics, industrial control, optical modules, etc. is good
According to the announcement, in terms of MCU products and R&D, 51 product lines and over 600 models have been mass-produced to achieve full coverage of high-performance, mainstream, entry-level, low-power, wireless, vehicle specifications, and special products. The core covers ARM M3, M4, M23, M33, M7 and RISC-V, and has established cooperative relationships with many leading domestic and international Tier 1 companies. In terms of vehicle MCUs, the GD32A series MCU currently provides 4 packages with a total of 10 models for the market to choose from to meet the needs of body control, vehicle lighting, intelligent cockpit, assisted driving, and motor power supply. On the demand side, thanks to demand for photovoltaics, industrial control, optical modules, etc., the revenue contribution of the industrial sector increased, and shipments increased in the fields of consumption, automobiles, network communication, and storage computing.
Investment advice:
We expect the company's revenue from 2024 to 2026 to be 7.489 billion yuan, 9.361 billion yuan, 11.234 billion yuan, and net profit to mother of 1.143 billion yuan, 1.757 billion yuan, and 2.344 billion yuan respectively. Using the PE valuation method, considering that the company is a high-quality and scarce target for domestic storage and MCU chips, it has established in-depth cooperation with brand customers in various fields. With continued high-intensity R&D investment, the platformization of R&D capabilities and scale effects are becoming more and more obvious, and it is expected that it will fully benefit from the upward trend of domestic substitution and storage cycles. Profitability is expected to continue to increase steadily in the 25th and 26th years, giving 60 times PE in 2024, corresponding to a target price of 103.0 yuan, maintaining a “buy-A” investment rating.
Risk warning:
Downstream demand falls short of expectations; new product development and introduction falls short of expectations; market competition intensifies; rising upstream OEM costs are squeezing the risk of profit margins.
