China's leading semiconductor memory and MCU chip designer, GIGADEVICE, released an earnings forecast indicating a substantial rebound in full-year 2025 profitability, driven by the steady upturn in the memory industry cycle and robust demand from AI computing infrastructure construction. The company anticipates its annual net profit will exceed 1.6 billion yuan, establishing a significant recovery trend.
According to the company's announcement disclosed on January 23, GIGADEVICE expects its 2025 net profit attributable to shareholders of the listed company to be approximately 1.61 billion yuan. This represents an increase of about 507 million yuan compared to 1.103 billion yuan in the same period last year, reflecting a year-on-year growth of approximately 46%.
Simultaneously, regarding the net profit after deducting non-recurring gains and losses, which reflects the profitability of its core operations, the company forecasts it will reach around 1.423 billion yuan. This is an increase of approximately 393 million yuan from 1.03 billion yuan the previous year, marking a year-on-year growth of about 38%. In terms of revenue, the company expects to record 9.203 billion yuan for the full year, an increase of about 1.847 billion yuan compared to the previous year, representing a growth rate of approximately 25%. This series of data indicates that the company has effectively emerged from its previous trough, achieving breakthroughs in both revenue scale and profit levels.
The company explicitly stated in its announcement that the strong performance of its core business stems from the dual drivers of technological transformation and industry structure optimization. Technologically, the accelerated construction of AI computing infrastructure globally has directly boosted demand for high-performance memory and control chips. Consequently, GIGADEVICE's product lines targeting PCs, servers, and automotive electronics have significantly benefited, with shipment volumes rising markedly.
At the industry level, following a prolonged inventory reduction cycle, the supply-demand dynamics in the memory chip market have fundamentally improved. The industry cycle is steadily ascending, driving simultaneous increases in product prices and sales volumes. The company stated that it consistently adheres to a market share-centric strategy and has successfully capitalized on opportunities from demand growth across multiple sectors by deepening its diversified product portfolio. This "efficient synergy" between its product matrix and market demand has served as a solid foundation for the steady climb in annual performance.
Beyond the organic growth from its core business, non-recurring gains and losses also contributed positively to GIGADEVICE's overall 2025 performance. The announcement indicated a significant increase in non-recurring gains and losses for 2025, primarily attributable to a rise in the fair value of the company's securities investments recorded at the period-end.
The company recognized corresponding fair value change gains, which to some extent bolstered the net profit attributable to shareholders. However, even after excluding the impact of these investment gains, the growth rate of the company's net profit after deducting non-recurring items remains close to 40%, demonstrating that the quality of its earnings growth is still primarily driven by its core operations.
GIGADEVICE emphasized in the announcement that this performance forecast is a preliminary calculation based on the professional judgment of its finance department, and the data has not yet been audited by the annual audit accountants. Although the company currently identifies no major uncertain factors affecting the forecast's accuracy, the specific and precise financial data are subject to the officially disclosed and audited 2025 annual report to be released subsequently.
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