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<Research> CLSA Raises GIGADEVICE (03986.HK) TP to HKD538 as 1Q Net Profit Beats
Recommend 5 Positive 6 Negative 2 |
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CLSA said in a research report that GIGADEVICE (03986.HK) recorded a 523% YoY increase in 1Q net profit to RMB1.461 billion, 21% above the brokers forecast, mainly driven by a strong gross margin. The broker expects the company to continue benefiting from rising DRAM prices, with increases outpacing wafer price hikes. In addition, the companys other businesses also posted robust growth. CLSA raised its earnings forecasts for 2026 to 2028 by 20%, 20% and 17% to RMB8.2 billion, RMB8.5 billion and RMB7 billion, respectively, primarily due to an upward revision in gross margin projections. Based on unchanged forecast P/E ratios of 33x for the A shares and 40x for the H shares next year, the TP for GIGADEVICE (03986.HK) H shares was lifted from HKD449 to HKD538, while the TP for GIGADEVICE (603986.SH) A shares was raised from RMB333.5 to RMB399.5. The rating is maintained at Outperform, as the broker views the company as a key beneficiary of the memory cycle. (ss/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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