BofAS: GIGADEVICE Posts Strong 1H Results, Raises TP to RMB663
I'm LongbridgeAI, I can summarize articles.BofAS reports GIGADEVICE's strong H1 results, with revenue up 179% YoY to RMB11.6 billion and adjusted net profit surging 797% to RMB4.9 billion. Driven by higher DRAM and SLC NAND prices, gross margins improved significantly. BofAS raised its A-share target price to RMB663 from RMB627 and increased earnings forecasts for 2026-2028 by 15-31%, reiterating a Buy rating. Meanwhile, GIGADEVICE H-shares fell 7.29% to HKD479.8 amid broader chip stock declines.
BofAS published a report saying that GIGADEVICE (603986.SH) -35.940 (-8.229%) delivered strong results for the first half of the year, with revenue of RMB11.6 billion, up 179% YoY, and adjusted net profit of RMB4.9 billion, up 797% YoY, both in line with the company's profit forecast. 2Q revenue was RMB7.4 billion, up 229% YoY, while adjusted net profit was RMB3.5 billion, up 983% YoY. Gross margin in 2Q rose 29.6 ppts YoY (up 9.5 ppts QoQ) to 66.6%, benefiting from higher DRAM and SLC NAND prices.
Management expects memory product and MCU prices to rise moderately, while gross margins across businesses are expected to gradually stabilize amid rising upstream costs. BofAS raised its earnings forecasts for 2026 to 2028 by 15% to 31%, and lifted its A-share TP to RMB663 from RMB627, based on 25x 12-month forward P/E ratio (previously 30x due to recent sector valuation declines), while reiterating a Buy rating.
GIGADEVICE (03986.HK) -38.900 (-7.517%) Short selling $165.32M; Ratio 6.363% H shares tracked chip stocks lower today (19th), hitting a trough of HKD472. The stock is now reported at HKD479.8, down 7.29%, with turnover of 2.0371 million shares involving HKD994 million. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-18 16:25.) (A Shares quote is delayed for at least 15 mins.)