GigaDevice Semiconductor Inc. (603986)

Individual Stock Analysis Report | Industry: Semiconductors (Integrated Circuit Design) | Report Date: September 13, 2026 | 2026-09-11 Close (Friday); This section covers only technical/fund flow aspects, excluding financial forecast sections

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

GigaDevice (603986.SH) delivered significantly跃升 results in 1H2026: operating revenue of RMB 11.566 billion, up 178.67% YoY; net profit attributable to parent of RMB 6.857 billion, up 1,091.50% YoY; non-GAAP net profit attributable to parent of RMB 4.883 billion, up 796.90% YoY. The earnings surge was primarily driven by tight memory chip supply, rising volume and prices of products, and a shift in product mix toward memory, but there is a gap of approximately RMB 1.97 billion between net profit attributable to parent and non-GAAP net profit, and fair value gains from securities investments contributed significantly to profit; core business profitability and book profit need to be observed separately.

The company has shifted from memory accounting for approximately 70% to being clearly memory-heavy; in 1H2026 memory chip revenue was RMB 9.827 billion, accounting for 84.97% of total revenue, up 245.44% YoY, with a gross margin of 67.57%, driving consolidated gross margin up to 63.13%; MCU revenue was RMB 1.430 billion, up 49.07% YoY, but sensor revenue declined 48.11% YoY. This structure enhanced earnings elasticity while also significantly increasing the company's dependence on the memory price cycle.

GigaDevice adopts a Fabless model, with wafer manufacturing, packaging, and testing all outsourced; from 2022–2024, the top five suppliers accounted for over 70% of procurement. Among these, niche DRAM wafer foundry is almost entirely dependent on ChangXin Group, with the expected related-party transaction amount for 2026 at USD 825 million, a substantial increase over the actual amount in 2025. Approximately 90% of downstream revenue comes from distributors, with customers relatively dispersed, but the company's bargaining power over scarce upstream capacity is relatively weak, and whether cost changes can be passed downstream will affect earnings stability.

As of September 11, 2026, the A-share closing price was RMB 371.32, with total market capitalization of approximately RMB 261.399 billion, dynamic P/E of 19.06x, TTM P/E of 32.97x, and P/B of approximately 7x, but the static P/E remains at 158.61x, reflecting significant valuation differences under different profit bases. The stock price retreated significantly after hitting RMB 846.66 on June 29, recently trading in the RMB 363–406 range, with moving averages, MACD, and main force fund indicators generally weak, while RSI and other indicators are near oversold, presenting a short-term state of coexisting weakness and oversold conditions.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Specialty memory: NOR Flash (code-type flash), SLC NAND Flash (data-type flash, based on 38nm/24nm process, capacities 1Gb~8Gb), niche DRAM (DDR3L/DDR4/LPDDR4/LPDDR4X, used in set-top boxes, TVs, network communications, smart homes, wearables, infotainment)
• Microcontroller MCU: ARM and RISC-V core 32-bit general-purpose MCUs, focused on industrial (industrial automation, energy and power, medical equipment), consumer, and automotive electronics
• Sensors: touch chips (self-capacitance/mutual-capacitance), fingerprint recognition (capacitive/under-display optical), high-precision barometric pressure sensors — from the 2019 acquisition of Silead
• Analog chips: general-purpose power (DC-DC, LDO), specialty power (earphone charging cases, robot vacuum cleaners), motor drive, temperature and humidity sensors; controlling subsidiary Suzhou Saixin is a domestic leader in the lithium battery protection niche (announced December 2024, GigaDevice acquired approximately 38.07% equity of Suzhou Saixin for cash of RMB 316 million and jointly with Shixi Capital, Hefei Guotou, and Hefei Chantou acquired a total of 70%, becoming the controlling shareholder)
• Revenue composition (official disclosure basis): FY2025 (as of 2025-12-31) total revenue RMB 9.202 billion (integrated circuit products 99.99%), memory chips RMB 6.566 billion, accounting for 71.34%, gross margin 42.84%; microcontrollers RMB 1.910 billion, accounting for 20.75%, gross margin 35.82%; sensors RMB 389.4 million, accounting for 4.23%, gross margin 19.57%; analog products RMB 332.8 million, accounting for 3.62%, gross margin 36.96%; consolidated gross margin 40.21%
• FY2024 (as of 2024-12-31) total revenue RMB 7.356 billion, memory chips approximately RMB 5.194 billion, accounting for 70.61% (gross margin 40.27%, source: Dazhihui F10); consolidated gross margin 38.00%
• 1H2026 (as of 2026-06-30) total revenue RMB 11.566 billion (YoY +178.67%), memory chips RMB 9.827 billion, accounting for 84.97%, gross margin 67.57%; microcontrollers RMB 1.430 billion, accounting for 12.36%, gross margin 38.49%; sensors RMB 100.3 million, accounting for 0.87%, gross margin 19.60%; analog products RMB 190.6 million, accounting for 1.65%, gross margin 40.50%; consolidated gross margin 63.13%
• Regional composition (1H2026): Hong Kong, China RMB 6.931 billion (59.93%), mainland China RMB 2.903 billion (25.10%), other countries and regions RMB 1.731 billion (14.97%); 2024 overseas revenue accounted for 77.52% (company basis). Note: the Hong Kong basis largely reflects distribution channel routing, not end-demand location, and should not be interpreted as "Hong Kong local market revenue"
• Supplement: After the 2026 interim report, media reported that the memory business share jumped from "approximately 70% year-round" to approximately 85%, with memory revenue up 245.44% YoY (Jiemian News 2026-08-20; Securities Times 2026-08-18)

2.3 Industry Chain Upstream/Downstream Position and Cost-Profit Structure

GigaDevice is a Fabless integrated circuit design company, focused on IC design and sales since inception, with wafer manufacturing, packaging, and testing all outsourced, positioned in the upstream design segment of the industry chain, with manufacturing dependent on external wafer foundry. Its true cost item on the cost side is "wafer foundry + packaging and testing capacity" rather than ordinary raw materials; on the customer side, distributors are the primary channel (approximately 90% of revenue from distributors), presenting a typical niche design company structure of "strong upstream capacity dependence, highly dispersed downstream customers."

• The company itself does not produce wafers; the main cost is procurement of wafers (and packaging/testing services) from foundries, rather than ordinary raw material procurement.
• Procurement concentration is very high: HKEX prospectus discloses top five suppliers' procurement amounts for 2022/2023/2024 of RMB 4.091/3.082/3.697 billion, accounting for 73.4%/71.0%/70.2% of total procurement (source: China Securities Journal report citing prospectus; Tiger Brokers community summary citing prospectus).
• FY2025 top five suppliers' procurement RMB 5.014 billion, accounting for 69.49% of total procurement (source: Chaguwang/Gubit F10, update date 2026-06-27). This figure is only found in one secondary data source, not cross-verified against the original annual report, and the 2025 annual report "major suppliers" section should be considered authoritative.
• The most critical single upstream dependency: DRAM wafer foundry is almost entirely dependent on ChangXin Group. The company's own-brand niche DRAM procures foundry services from ChangXin Technology Group and its subsidiaries (ChangXin Memory Technologies, ChangXin Technology (Hefei), etc.), which constitutes a related-party transaction (company chairman Zhu Yiming also serves as chairman of ChangXin Technology).
• Related-party transaction scale: 2025 actual amount RMB 1.182 billion (expected limit USD 161 million/RMB 1.161 billion); 2026 expected limit USD 825 million ≈ RMB 5.711 billion, approximately 3.8x increase over 2025 actual amount; as of 2026-03-30, RMB 581 million had occurred; 1H2026 separately authorized limit USD 221 million ≈ RMB 1.547 billion. The company's stated reason for the increase is "increased demand for niche new products/new solutions + significant YoY increase in wafer foundry costs due to niche DRAM market price increases."
• Assessment of bargaining power over upstream: relatively weak, essentially a price taker. Evidence is that the DRAM foundry procurement amount in 2026 was officially stated as "significantly increased due to market price increases," i.e., cost increases are borne by the company, which can only indirectly pass them downstream through price increases (the company stated it "hopes to maintain long-term good cooperative relationships with customers and does not pursue aggressive price increases"), consistent with the industry structure where "wafer foundry capacity is a scarce resource."
• Items not verifiable (must be noted): This search did not obtain the specific foundry names for NOR Flash / SLC NAND Flash (the wafer fabs commonly recognized by the market were not named in the primary sources retrieved in this search), nor did it obtain foundry cost breakdowns by product other than DRAM; do not fill in specific foundry names from memory.
• Customer composition: distributors + direct customers (electronic component manufacturers/sellers), of which distribution accounts for approximately 90% (corroborated by the 2023 annual report and prospectus above).
• Customer concentration: This search only obtained data on a 2016 annual report basis — top five customers' sales of RMB 562.4037 million, accounting for 37.77% of annual total sales (source: GigaDevice 2016 Annual Report, Sina Finance). This data source is from an earlier year (2016) and is a single source; the latest annual customer concentration could not be cross-verified, and the latest annual report should be considered authoritative.
• Highly dispersed customers are a typical characteristic of the "niche" model, corroborating the channel structure where distribution accounts for approximately 90%.
• Industry structural bargaining dynamics: As an IC design company, the company faces scarce upstream wafer foundry capacity (price taker), with dispersed downstream customers reached through distribution channels; the company finds it difficult to fully and quickly pass cost increases downstream (officially stated it does not pursue aggressive price increases), and gross margin fluctuations are primarily driven by product mix upgrades and market price cycles, rather than sustained pricing power over customers.
• This search did not obtain GigaDevice's accounts receivable as a proportion of net profit or revenue, accounts receivable turnover days, prepayments/accounts payable, or other specific working capital occupation data; relevant figures did not appear in the research notes, so this data is missing and uncertain, and the latest annual report should be considered authoritative. The confirmable channel structure signal is: 2023 annual report shows distributor channel revenue of RMB 5.215 billion and direct sales of RMB 546 million, i.e., distribution accounted for approximately 90.5%, corroborating the HKEX prospectus statement that "approximately 90% of revenue comes from distributors"; the niche model with highly dispersed customers (2016 annual report top five customers at 37.77%) typically corresponds to a relatively dispersed accounts receivable structure, but this search did not obtain verifiable specific working capital indicators, and no quantitative inference is made.
• Upstream: HKEX prospectus discloses top five suppliers' procurement amounts for 2022/2023/2024 of RMB 4.091/3.082/3.697 billion, accounting for 73.4%/71.0%/70.2% of total procurement (source: China Securities Journal report citing prospectus, covering 2022–2024); FY2025 top five suppliers' procurement RMB 5.014 billion, accounting for 69.49% of total procurement (source: Chaguwang/Gubit F10, update date 2026-06-27, only found in one secondary data source, not cross-verified against the original annual report, the 2025 annual report should be considered authoritative). Downstream: This search only obtained 2016 annual report basis top five customers' sales of RMB 562.4037 million, accounting for 37.77% of annual total sales (source year 2016, single source not cross-verified, the latest annual report should be considered authoritative). Concentration data must be annotated with source year and limitations.

GigaDevice is positioned in the mid-to-upstream of the smile curve — the Fabless integrated circuit design segment: it is neither upstream resources/manufacturing (wafer manufacturing outsourced, relatively weak bargaining power over upstream foundry capacity, essentially a price taker), nor downstream brand channels (customers highly dispersed, primarily distribution); its profit is primarily driven by product mix upgrades (memory share and niche DRAM/DDR4 and other new product iterations) and the memory price cycle, rather than sustained pricing power over upstream costs or downstream customers. Further gross margin improvement drivers lie in product portfolio upgrade toward high-margin memory, niche DRAM capacity and product iteration (2026 related-party transaction limit significantly increased), and cost control and scale effects, rather than a vague statement of "intense industry competition."

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 interim report (disclosed 2026-08-18/19), with data cross-verified and consistent across multiple independent sources including East Money performance summary, Sohu Securities, Stockstar, and Donghai Securities commentary. 2026Q2 is single-quarter data (revenue QoQ +76.16%, net profit attributable to parent QoQ +269.24%). 2026H1 non-GAAP net profit attributable to parent RMB 4.883 billion, YoY +796.90%; 2026Q2 non-GAAP RMB 3.473 billion, YoY +983.35%. 2026H1 gross margin 63.13% (YoY +25.92pct), Q2 gross margin 66.57% (YoY +29.56pct, QoQ +9.49pct); weighted ROE 23.13%; basic EPS RMB 9.83 (some sources list 9.740, caliber differences should be noted); net assets per share RMB 53.13; debt-to-asset ratio 11.47%; net cash flow from operating activities RMB 6.048 billion (+531.47%); total assets RMB 42.405 billion (+98.19% vs. year-end prior year). FY2025 dividend RMB 7.50 per 10 shares (tax inclusive). 2026H1 revenue of RMB 11.566 billion has exceeded full-year 2025 revenue of RMB 9.2 billion.

The approximately RMB 1.97 billion difference between 2026H1 net profit attributable to parent of RMB 6.857 billion and non-GAAP net profit attributable to parent of RMB 4.883 billion is mainly due to an increase in the fair value of securities investments held at period-end, recognizing fair value change gains of RMB 2.228 billion (an increase of approximately RMB 2.221 billion YoY); this amount is primarily from a single media paraphrase and should be verified against the official interim report. That is, 1H profit includes large non-recurring/fair value gains, and the non-GAAP basis better reflects core business earnings quality. The company on 2026-07-10 forecast 2026H1 net profit attributable to parent of approximately RMB 6.900 billion, up approximately 1,099% YoY, broadly consistent with the officially disclosed RMB 6.857 billion. By business segment (2026 interim report): memory chips RMB 9.827 billion (84.97%, YoY +245.44%), MCU RMB 1.430 billion (12.36%, +49.07%), analog products RMB 191 million (1.65%, +25.19%), sensors RMB 100 million (0.87%, -48.11%). 2026H1 revenue YoY growth +178.67%, net profit attributable to parent YoY +1,091.50%, extremely high growth rates; the official interim/annual report should be considered authoritative.

3.2 Earnings Forecasts

The above forecasts come from various brokerage individual stock research reports, all annotated with the corresponding institution and report date. Tonghuashun iFinD summary (as of 2026-09-10, approximately 17-18 institutions over the past 6 months) shows 2026E net profit attributable to parent: averages vary greatly across snapshots at different points in time — one version has a maximum of RMB 16.074 billion, minimum of RMB 3.776 billion, average of RMB 10.385 billion (+530.16% vs. last year) (2026-09-10 page); another version has a maximum of RMB 16.074 billion, minimum of RMB 2.828 billion, average of RMB 8.857 billion (+437.41%) (2026-08-25 page); the average difference indicates inclusion of many older forecasts from April-June, before the interim report; the original Tonghuashun current consensus table was not obtained, and average usage requires caution. Common forecast judgment: 2026E net profit broadly falls in the RMB 10-16 billion range (most RMB 12-16 billion), but dispersion is extremely large. Hua'an Securities, AVIC Securities, Huaxin Securities and others published forecasts before the interim report surge, already significantly low, and should not be used as current consensus. Simply Wall St (updated 2026-08-21/24) shows 2026 revenue of approximately RMB 27.39-27.50 billion, profit of approximately RMB 14.45-14.49 billion; 2027 revenue of approximately RMB 32.89-34.49 billion, profit of approximately RMB 11.72-12.86 billion; 2028 revenue of approximately RMB 35.8-37.1 billion, profit of approximately RMB 10.7-11.7 billion, but this source implies 2027/2028 profit decline, contrary to the direction of most brokerages, suspected of stale data/mixed calibers, not adopted as a conclusion.

3.3 Valuation Levels and Institutional Ratings

As of 2026-09-11 close (consistent timestamp across multiple sources), GigaDevice's closing price was RMB 371.32, down 2.45% on the day (previous close RMB 380.64; intraday RMB 363.00-373.99). Total market cap RMB 261.399 billion; float market cap RMB 249.051 billion; total shares 704 million, float shares 671 million. Valuation multiples: P/E (TTM) 32.97; P/E (static, based on 2025 EPS of 2.48) 158.61; dynamic P/E (annualized current period) 19.06; P/B approximately 6.98-7.01. Valuation caliber warning: aastocks shows P/E 155.42/TTM 33.69, P/B 13.54, with P/B using 2025 year-end net assets per share of RMB 28.46 rather than the latest RMB 53.13, so P/B is significantly elevated and static P/E is also high; the approximately 7.0x P/B based on the latest period net asset caliber should be considered authoritative. Range performance (aastocks, updated 2026/09/07-08): 52-week range RMB 154.62-846.66, 1-year +141.56%, year-to-date +79.90%; but 1-month -7.58%, 2-month -37.83%, i.e., significant retreat after hitting a high of approximately RMB 847 (the high point date was not precisely confirmed in this search and needs separate verification). Dividend/yield: FY2025 RMB 7.50 per 10 shares, corresponding to a dividend yield of approximately 0.19% (relatively low, growth stock characteristic). Institutional target price range RMB 422.28-798.00, average RMB 627.65, very wide spread, reflecting serious disagreement on the timing of the memory cycle peak and DRAM elasticity assumptions; individual target prices and the average are not fully synchronized, reflecting multiple brokerages but high dispersion. Note: the high net profit attributable to parent growth includes large non-recurring items, and earnings quality evaluation must use the non-GAAP basis; consensus calibers are chaotic, and post-interim-report (from mid-to-late August) brokerage forecasts (mostly RMB 12-16 billion) should be considered authoritative; this was a web search, and original PDF/announcement texts could not be opened one by one; key financial figures were cross-verified and consistent across at least 3 independent sources, with relatively high credibility, but line-item amounts precise to the yuan mainly come from single media paraphrases and should be verified against the official interim report.

4. Recent News and Announcements

4.1 GigaDevice (603986) Issues 2026 Interim Results Pre-Increase Announcement

Announcement No. 2026-054, disclosure date 2026-07-09. Estimated 2026H1 operating revenue of approximately RMB 11.5 billion, up approximately 177% YoY (increase of approximately RMB 7.34969 billion); estimated net profit attributable to parent of approximately RMB 6.900 billion, up approximately 1,099% YoY (increase of approximately RMB 6.32452 billion); estimated non-GAAP net profit attributable to parent of approximately RMB 4.85 billion, up approximately 791% YoY (increase of approximately RMB 4.30557 billion). Quarterly estimates (media extrapolated from Q1 report, not original announcement text): Q1 net profit attributable to parent RMB 1.461 billion, Q2 estimated at approximately RMB 5.439 billion, QoQ +272%. Reasons for change (original announcement text): memory chip industry supply tight, memory product volume and price rising, memory business profitability improved; MCU benefited from industrial/consumer/automotive demand driving shipment scale growth; in addition, the fair value of securities investments held by the company rose at period-end, and recognized fair value change gains increased significantly. Risk warnings (original announcement text): the memory industry has historically shown cyclical fluctuations, and future profitability may decline; securities investment fair value changes are included in non-recurring gains and losses and may affect future net profit as fair value fluctuates.

4.2 GigaDevice Discloses 2026 Interim Report

Disclosure date 2026-08-19 (management discussion and analysis). Operating revenue RMB 11.566 billion, YoY +178.67%; net profit attributable to parent RMB 6.857 billion, YoY +1,091.50%; non-GAAP net profit RMB 4.883 billion, YoY +796.90%; sales gross margin 63.13% (YoY +25.92pct); memory chip revenue RMB 9.827 billion, YoY +245.44% (approximately 84.97% of revenue); MCU revenue YoY +49.07%. Officially disclosed figures slightly below the midpoint of the results pre-announcement, within normal range.

4.3 GigaDevice Discloses Share Repurchase Plan

Announcement No. 2026-084 (review). First disclosure date 2026-08-01, proposed by Chairman Zhu Yiming; approved at the 14th meeting of the 5th Board of Directors on 2026-07-31 and the 2026 Second Extraordinary Shareholders' Meeting on 2026-08-20; proposed to use own funds and/or self-raised funds, centralized bidding repurchase amount RMB 1-2 billion, price ceiling RMB 750/share; repurchase period 2026-08-20 to 2027-02-19 (approximately 6 months); purpose is all for cancellation and reduction of registered capital (capital reduction, not employee stock ownership/convertible bonds). The company has notified creditors, who may request debt repayment or provision of guarantees within 45 days from the announcement date.

4.4 GigaDevice Discloses Share Repurchase Progress (As of 2026-08-31)

Progress announcement issued 2026-09-02, announcement No. 2026-084. As of 2026-08-31, cumulative repurchase of 1.6623 million shares, accounting for 0.24% of total shares, with RMB 654.4661 million (approximately RMB 654 million) paid, price range RMB 375.05-411.95/share. Some media reports after market close on 2026-09-01 were consistent (RMB 654 million, 1.6623 million shares, 0.24%).

4.5 GigaDevice H-Share Discloses Supplementary Repurchase Data (As of 2026-09-03 and 2026-09-07)

H-share next-day disclosure returns (new, not cancelled basis): during 2026-08-21 to 09-03, seven repurchases totaling 1,797,300 shares, price range RMB 383.37-406.48/share; of which 09-03 single-day repurchase of 135,000 shares, average price approximately RMB 385, total amount RMB 51,852,403; 2026-09-07 repurchase of 132,000 shares, price RMB 381.53-385, total amount RMB 50.6375 million, all to be cancelled. Note: the cumulative repurchased shares under the board announcement basis and the H-share daily disclosure not-cancelled basis differ (1.6623 million shares vs. 1,797,300 shares), a difference in statistical timing/inclusion of cancelled portion, not a contradiction, and the basis must be noted when citing.

4.6 GigaDevice Holds 2026 Third Extraordinary Shareholders' Meeting and Discloses Resolutions

Held 2026-09-09, resolution announcement No. 2026-085, published 2026-09-10. Approved the "Proposal on the Company's 〈2026 H-Share Award Scheme〉" and the scheme limit, service provider sub-limit, authorization of the board to handle related matters, and 4 other proposals, all as special resolutions, all passed, with no rejected proposals. Attendance: 5,186 shareholders and proxies (5,185 A-share, 1 H-share), representing 108,568,615 voting shares, accounting for 15.4618% of the company's total voting shares. Record date (2026-09-03) total issued shares 703,971,427 = A-shares 670,718,327 + H-shares 33,253,100; repurchase special account held 1,797,300 A-shares (without voting rights).

4.7 GigaDevice Discloses Change of Board Secretary

Announcement on the evening of 2026-08-18: Dong Lingyan resigned as board secretary and joint company secretary due to personal career planning; the board appointed Xie Feiwang as successor (born 1987, Peking University MBA, non-practicing CPA, joined GigaDevice in August 2025, previously Director of Capital Operations Department). This is a normal executive change. Source is a single secondary source; the original SSE announcement text should be considered authoritative (original link not directly obtained, marked as pending verification).

4.8 GigaDevice Discloses Exercise Results of the Third Exercise Period of the 2023 Stock Option Incentive Plan

2026-08-27, see SSE announcement list: exercise results and share listing of the third exercise period of the 2023 stock option incentive plan.

4.9 GigaDevice Continuously Issues H-Share Next-Day Disclosure Returns

From late August to early September 2026, the company continuously issued multiple H-share announcements - next-day disclosure returns (2026-08-26/27/28/29, 09-03/04/05/08), corresponding to A-share repurchase daily/transaction-by-transaction disclosures. 2026-09-08 also had an H-share announcement - next-day disclosure return.

4.10 GigaDevice 2025 Annual Final Dividend (Secondary Source, Pending Verification)

The board proposed a final cash dividend of RMB 0.75/share (pre-tax), totaling approximately RMB 525.4 million, expected to be paid no later than 2026-06-24. Source is Zonebourse (S&P Capital IQ data), a single secondary source, not cross-verified against the company's original text in this search; the company's dividend distribution announcement should be considered authoritative.

4.11 GigaDevice Participation in Private Equity Investment Fund Progress (Pending Verification)

2026-06-03 media report on the progress announcement regarding participation in a private equity investment fund. Source is the Zheshang Securities official website, a single source only, announcement number not obtained, marked as pending verification.

4.12 GigaDevice M&A History (Background Information)

2024-12-18 announcement of joint acquisition with Shixi Capital, Hefei Guotou, and Hefei Chantou of 70% equity of Suzhou Saixin Electronic Technology (GigaDevice became controlling shareholder; Suzhou Saixin primarily engages in lithium battery protection chips and power management chips); 2018-2019 acquisition of Shanghai Silead (source of sensor business).

4.13 GigaDevice Historical Board and Incentive Plan Dynamics (Timeline Reference)

2025-10-29 6th meeting of the 5th Board of Directors: reviewed 2025 Q3 report; changed accounting firm to KPMG Huazhen (audit fee ceiling RMB 2.49 million); purchased directors and officers liability insurance; changed registered capital and amended articles of association; scheduled 2025-11-20 for the 2025 Second Extraordinary Shareholders' Meeting. 2025-12-17: 2021 stock option and restricted stock incentive plan deferred grant portion fourth unlocking period unlocking (1 incentive recipient, 34,650 shares, 0.0052% of total shares).

4.14 Industry/Policy and Macro Background

The company states the integrated circuit industry it operates in strongly recovered in 2025 under AI demand; WSTS: 2025 global semiconductor market USD 772 billion, YoY +22%; memory chips +28%. 2025 global specialty memory market size approximately USD 15.7 billion (niche DRAM USD 9.9 billion, NOR Flash USD 3.1 billion, SLC NAND USD 2.7 billion). Benefit logic: overseas major manufacturers exiting niche DRAM and cutting 2D NAND capacity, SLC NAND/niche DRAM prices rising. This search did not find direct regulatory penalties/investigation-type negative announcements against the company (one item visible in SSE regulatory records is a regulatory work letter dated 2017-11-08 regarding another suspension and restructuring, which is historical information).

4.15 Uncertainties and Data Limitations to Note

1) Stock price/market cap caliber inconsistency: the 2026-09-01 media basis stock price of RMB 393.00 and market cap of RMB 276.7 billion clearly conflict with values such as RMB 705.09 and RMB 612.00 appearing on some portal pages; the difference is likely captured at different times/JS rendering residual data or H-share related data; the official repurchase price range (August RMB 375.05-411.95, September RMB 381.53-385) is the most reliable, and the A-share stock price range of approximately RMB 375-410 in late August to early September should be considered authoritative, with other figures treated with caution. 2) The difference in share counts between H-share repurchase disclosure and A-share announcement bases (1.6623 million shares vs. 1,797,300 shares) has been explained in the share repurchase related items, and the basis and timing must be noted when citing. 3) Board secretary change, 2025 annual dividend, and private fund investment progress are all secondary/single sources, original company announcement texts not obtained, pending cross-verification. 4) The results pre-announcement (RMB 6.900 billion/RMB 11.5 billion) is the midpoint of the pre-announcement range (approximately basis), and the official interim report is RMB 6.857 billion/RMB 11.566 billion; the two not being exactly equal is normal, do not mix them up. 5) Data dates: results pre-announcement 2026-07-09; interim report 2026-08-19; repurchase progress as of 2026-08-31 (announcement 2026-09-02); shareholders' meeting 2026-09-09 (resolution 2026-09-10). The above are all official disclosure figures as of the stated dates.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Price and valuation: As of 2026-09-11 close, GigaDevice closed at RMB 371.32, down 2.45%, with daily turnover of RMB 10.786 billion and turnover rate of 4.36%, total market cap RMB 261.399 billion. Price data consistent across multiple sources, relatively high credibility; valuation calibers diverge greatly (dynamic PE 19.06, PE(TTM) 32.97, static PE 158.61), cannot be mixed. Price structure: since late August the stock price has oscillated in the RMB 363~406 range, this week (9/8 high RMB 398.0 to 9/11 low RMB 363.0) showing an initial surge then retreat, overall a retreat after rebound. Current price is still approximately 56% below the 52-week high of RMB 846.66 (2026-06-29); 52-week lows diverge considerably across data sources (RMB 175.25/154.62/145.80/115.55), the more credible being RMB 175.25 as of 9/11 from Sina/Baidu, but not secondarily verified. Technical indicators: As of 9/4, investing.com composite signal is "Strong Sell" (moving averages Buy 0/Sell 12, technical indicators Buy 0/Sell 9), RSI 27.66 near oversold, MACD -5.05, multiple oscillators in oversold zone; Jiufang Zhitou alerts 9/4 daily-level bear point, 9/3 bearish three crows, 9/9 RSI death cross, downside gap support RMB 329.25, chip cost average RMB 405.62; East Money Qian Gu Qian Ping shows 9/11 MACD/RSI no clear signal for now, institutional participation 44.34%, 20-day main force cost RMB 400.81. Overall judgment is bearish moving average alignment, stock price trading below MA20/MA50/MA200, with "weakness + oversold" coexisting, indicators overall weak. Fund flows: main force funds recently continued net outflow (9/11 net outflow RMB 1.216 billion, No. 1 on the Shanghai market that day; 9/4 net outflow RMB 1.915 billion; Jiufang Zhitou states 10-day main force outflow RMB 5.169 billion), margin trading balance RMB 17.129 billion accounting for 6.88% of float (above market average 3.95%) and decreased RMB 802 million over the past 10 days, showing leverage retreat; ETF funds 60-day cumulative net inflow RMB 896 million (as of 9/8); northbound "inflow on 9 of past 10 days" opposite to main force direction, single source not cross-verified. Data self-consistency alert: East Money 3/5/10-day main force net inflow calibers contradict each other, cite with caution. Overall, technicals are weak and oversold, fund flow main force and leverage funds retreat are the main pressure, ETF and rumored northbound funds constitute oppositely directed marginal variables, and short-term is likely to maintain a weak oscillation pattern.

5.3 Short-Term Trend Outlook (Next Week, Scenario Projection, For Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario projection based on historical prices, technical indicators, and fund flows, in which "weight" is the author's subjective empirical judgment, not a statistical probability, does not constitute investment advice, nor does it constitute a guarantee of future actual trends.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Oscillating consolidation (high-probability scenario) (relatively high weight, approximately 60% (subjective empirical judgment, not statistical probability)): The stock price oscillates within the RMB 361~387 range, i.e., tug-of-war between first support (RMB 361~367) and short-term resistance (RMB 375~387). Trigger/maintenance conditions: main force funds outflow but daily turnover not significantly shrinking (maintaining the recent approximate RMB 10.7~11.3 billion/day midpoint), and the semiconductor sector overall has no clear direction; technically MACD/RSI in no-signal state, oversold and weak coexisting, bulls and bears lacking combined force.
• Weak downside (moderate weight (subjective empirical judgment, not statistical probability)): The stock price effectively breaks below the RMB 361~367 first support (closing confirmation or volume break), and tests downward the RMB 337.10 stage low or even the RMB 329.25 gap support range (RMB 329~337). Trigger conditions: main force funds continue large net outflow (reference 9/11 net outflow RMB 1.216 billion magnitude), margin leverage continues to retreat triggering liquidation amplifying volatility, or semiconductor sector overall weakens; special attention needed if effectively breaking below the RMB 329.25 gap support, may enter rapid decline channel.
• Rebound strengthening (low weight (subjective empirical judgment, not statistical probability)): The stock price rebounds from oversold zone, recovers the RMB 375~387 short-term resistance range and challenges upward the RMB 398~420 distant resistance band. Trigger conditions: significant volume expansion (turnover clearly above the recent RMB 10.7~11.3 billion midpoint), MACD red bars re-expanding, semiconductor sector sentiment warming or clear catalyst news; oversold rebound alone without volume support is difficult to sustain, watch for surge then retreat.

③ Fund Flow and Liquidity Background

Liquidity: 9/11 turnover rate 4.36%, 9/4 turnover rate 4.47%; recent daily turnover rate broadly stable in the 4.3%~4.5% range; recent turnover midpoint approximately RMB 10.7~11.3 billion/day (9/11 RMB 10.786 billion, 9/4 RMB 11.312 billion), earlier high-volatility periods reached RMB 13.868 billion (8/22), RMB 32.439 billion (7/29 crash day). Absolute turnover is high but turnover rate not extreme, characteristic of a high-priced stock (above RMB 370). Leverage: as of 2026-09-11 margin trading balance RMB 17.129 billion, accounting for 6.88% of float (market average 3.95%), down 1.01% from the prior trading day, decreased RMB 802 million over the past 10 days — leverage level above market average and recently in retreat; once accelerated downside occurs, leveraged position liquidation will amplify volatility. Shareholder structure: according to Hexun/Stockstar late July 2026 special report, shareholder count surged to approximately 240,000, highly retail-oriented, with margin positions approximately RMB 20 billion; this data is a July 2026 basis, single source, not cross-verified, and already lagged, current structure may have changed. This research did not obtain verified "top ten float shareholders" details and public fund/social security/QFII holdings lists, which is data missing; available indirect clues include only: multiple Xinchuang/consumer electronics ETFs holding 8%~10% (e.g., Growth ETF E Fund 159259 holding 9.99%, Xinchuang ETF Fullgoal 159538 holding 9.82%, Xinchuang ETF Guotai 159537 holding 8.84%), and East Money "institutional participation 44.34%" — the above are indirect evidence and cannot be equated with the top ten shareholder structure. Disclosed institutional/major shareholder movements (all from July 2026 Hexun/Stockstar special reports, for position background only): 7/8 China Life 8 asset management products centralized bidding sold 1.1097 million shares (approximately RMB 685 million); 7/14 JPMorgan near-liquidation reduction of H-shares (holdings 10.64%→3.49%); May founder Zhu Yiming multiple rounds of reduction (5/11–5/25 cumulative 6.3299 million shares, cashing out approximately RMB 2.572 billion). In summary, the stock's daily turnover is in the tens of billions, liquidity itself not poor, but main force funds continuous net outflow combined with 6.88% high margin ratio, and chip cost average (RMB 405.62) significantly above current price, dense overhead trapped positions, in practice need to watch the amplifying effect of leveraged fund movements on volatility.

Volume confirmation signal: recent turnover midpoint approximately RMB 10.7~11.3 billion/day; if daily turnover continues to expand above RMB 13 billion (clearly above the recent normal range) and the stock price stands above the RMB 375~387 short-term resistance range, this can be viewed as a signal of fund entry; conversely if turnover shrinks below RMB 10 billion while the stock price breaks below RMB 361~367, this is evidence of continued weakness.

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Watch whether the short-term resistance RMB 375~387 range can be effectively recovered, and whether the first support RMB 361~367 is effectively broken; the two constitute the core observation band for recent direction selection.
• Watch the defense situation at strong support RMB 329~337 (including RMB 329.25 gap support); if effectively broken, may point to a lower area after gap fill.
• Watch volume signals: whether daily turnover can continue to expand above RMB 13 billion and配合 stabilizing above the short-term resistance zone, or shrink below RMB 10 billion with a breakdown.
• Watch marginal changes in fund flows: whether main force funds net outflow narrows, whether margin balance (currently 6.88% of float) retreat slows, and whether ETF funds' continued net inflow can offset.

The above scenario projections are based on 2026-09-11 closing data and historical price/technical indicator calculations; short-term stock prices will also be disturbed by multiple factors including news, fund flows, and overall market environment; technical indicators themselves have lag and limitations, do not constitute a guarantee of future actual trends, nor do they constitute buy/sell advice; please combine with the latest market information for independent judgment and bear investment risks yourself. Note also: the 52-week low in the text has multiple source divergence, shareholder count and institutional reduction data are July 2026 basis and single source not cross-verified, Bollinger Band values are estimates, northbound fund data from a single source not cross-verified, East Money 3/5/10-day main force fund calibers contradict each other; the above data all have limitations and should be used with caution.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

GigaDevice operates in the integrated circuit design industry (national economic industry classification code 6520), primarily engaged in memory (NOR Flash, SLC NAND Flash, niche DRAM), microcontrollers (MCU), sensors, and analog chips, with products used in consumer electronics, automotive, industrial applications, PC and servers, IoT, network communications and other fields, providing "sensing, storage, computing, control, connectivity" overall solutions. The industry is Fabless model, with manufacturing and packaging/testing outsourced, upstream wafer foundry capacity scarce and highly concentrated, downstream customers dispersed, primarily distribution channels. In 1H2026, driven by memory price increases and product mix concentration in memory, the company's consolidated gross margin rose significantly to 63.13%, with memory business share jumping from approximately 70% year-round to approximately 85%.

6.2 Competitive Landscape

• Industry model: Integrated circuit design is Fabless model, with wafer manufacturing, packaging, and testing outsourced; design companies have relatively weak bargaining power over upstream foundry capacity and are essentially price takers.
• Upstream landscape: Wafer foundry capacity scarce, procurement concentration high. GigaDevice 2022/2023/2024 top five suppliers' procurement accounted for 73.4%/71.0%/70.2% (HKEX prospectus basis), FY2025 top five suppliers' procurement accounted for 69.49% (secondary source, not cross-verified).
• Key upstream dependency: The company's own-brand niche DRAM wafer foundry is almost entirely dependent on ChangXin Group (ChangXin Technology Group and its subsidiaries), which is a related-party transaction; 2026 expected limit USD 825 million ≈ RMB 5.711 billion, approximately 3.8x the 2025 actual RMB 1.182 billion.
• Downstream landscape: Customers highly dispersed, primarily distribution, approximately 90% of revenue from distributors (corroborated by 2023 annual report and HKEX prospectus); 2016 annual report basis top five customers accounted for 37.77% of annual total sales (source year earlier, single source not cross-verified).
• Cycle and prices: In 1H2026 memory prices rose, the company's memory revenue up 245.44% YoY, memory share up to approximately 85%, consolidated gross margin up to 63.13%; during the same period DRAM foundry costs increased significantly due to market price increases, cost-side pressure.
• Product mix evolution: From "memory approximately 70%" toward memory concentration at approximately 85%, product lines covering memory, MCU, sensors, analog chips, expanding sensors and analog chips through the acquisition of Silead (2019) and obtaining controlling stake in Suzhou Saixin (2024).

6.3 Main Competitors

This research note did not provide specific financial and business data for other A-share comparable listed companies in the same industry, so no peer horizontal comparison table is listed; the peers_table lists only GigaDevice itself and its controlling/acquired subsidiaries (Suzhou Saixin, Shanghai Silead), which does not constitute a strictly defined peer competitive comparison. In terms of comparison dimensions, GigaDevice's structural characteristics are: Fabless design model, highly concentrated upstream wafer foundry (DRAM foundry almost entirely dependent on ChangXin Group, 2026 related-party transaction expected limit USD 825 million ≈ RMB 5.711 billion), highly dispersed downstream customers (approximately 90% of revenue from distributors), fundamentally different cost-profit structure from upstream resource/manufacturing segment companies and downstream brand channel segment companies; its profit elasticity is primarily driven by the memory price cycle and product mix concentration in memory (1H2026 memory share approximately 85%, consolidated gross margin 63.13%), rather than sustained pricing power over upstream costs or downstream customers. Comparable peer companies and data are missing in this research note; the latest annual report and peer public disclosures should be considered authoritative.

7. Risk Warnings

• Memory cycle reversal risk: In 1H2026, memory chip revenue share rose to 84.97%, and consolidated gross margin rose to 63.13%; performance is highly sensitive to memory product prices and supply-demand changes. The company's announcement has warned that the memory industry has historically shown cyclical fluctuations; if supply recovers or demand weakens, revenue growth, gross margin, and profit may decline significantly.
• Niche DRAM upstream concentration and related-party transaction risk: The company's own-brand niche DRAM wafer foundry is almost entirely dependent on ChangXin Group, with the 2026 expected related-party transaction limit at USD 825 million, a significant increase over the 2025 actual amount of approximately RMB 1.182 billion. If ChangXin Group's capacity, pricing, delivery, or related-party transaction arrangements change, the company's DRAM product supply and cost control may be affected.
• Upstream cost pass-through risk: Under the company's Fabless model, wafer manufacturing, packaging, and testing are all outsourced; from 2022–2024 the top five suppliers accounted for over 70% of procurement. The company has disclosed that DRAM foundry costs increased significantly due to market price increases, and it does not pursue aggressive price increases; if cost increases cannot be timely passed to distributors and end customers, gross margin may come under pressure.
• Earnings quality and fair value fluctuation risk: In 1H2026, net profit attributable to parent was RMB 6.857 billion, while non-GAAP net profit attributable to parent was RMB 4.883 billion; the profit difference is mainly related to the increase in fair value of securities investments at period-end. Securities investment fair value changes are volatile; if related asset prices decline, future net profit attributable to parent may be lower than the current high base, and core business earnings performance may also be amplified or obscured by non-recurring gains.
• Product mix over-concentration risk: The memory business share rose from approximately 70% year-round to 84.97% in 1H2026, while sensor business revenue declined 48.11% YoY, and both analog products and sensors have relatively low revenue shares. MCU, sensors, and analog chips have not yet sufficiently formed a performance hedge against the memory business, making the company's overall operating results more susceptible to the single cycle of the memory business.
• Channel structure risk: Approximately 90% of the company's revenue comes from distributors, with distributor channel revenue accounting for approximately 90.5% of that year's revenue in 2023. Distribution channels help cover dispersed customers, but may also make the company's grasp of end demand, inventory changes, and channel destocking relatively indirect; if distributors adjust inventory or end demand weakens, orders and revenue recognition may be affected.
• Technical and financing volatility risk: As of September 11, 2026, the company's stock price is trading below multiple medium-to-long-term moving averages, main force funds have recently continued net outflow, and the margin trading balance accounts for approximately 6.88% of float and decreased RMB 802 million over the past 10 days. If the stock price breaks below the RMB 361—367 support zone and triggers further contraction of leveraged funds, stock price volatility may be amplified; at the same time, there is relatively明显 chip and cost pressure near RMB 400—420 above.
• Valuation and expectation gap risk: As of September 11, 2026, the company's static P/E is 158.61x, TTM P/E 32.97x, dynamic P/E 19.06x, with large differences across calibers; institutional forecasts for 2026 net profit are approximately in the RMB 10-16 billion range, and the target price range is also wide. If memory prices or profit growth are below market expectations, current valuation and high growth expectations may face repricing.

8. Conclusion and Outlook

The company's current core growth logic lies in rising memory product volume and prices, niche DRAM product and capacity expansion, MCU shipment growth in industrial, consumer, and automotive electronics fields, and product mix and operating leverage improvement brought by memory business scale expansion. 1H2026 revenue has exceeded the full-year 2025 level; market forecasts for 2026 full-year revenue and profit are generally significantly higher than 2025, but different institutions' 2026 net profit forecasts diverge considerably, approximately in the RMB 10-16 billion range, indicating that the market still has significant uncertainty about the duration of the memory cycle, price levels, and earnings quality.

Whether medium-to-long-term performance can continue depends on the memory price cycle, niche DRAM product iteration and capacity assurance, and whether the company can maintain gross margin when foundry costs rise. The company has expanded sensor, analog chip, and lithium