Gasgoo Munich- GigaDevice released its 2026 first-half performance forecast on the evening of July 9. The company expects revenue of approximately 11.5 billion yuan for the first half, a 177% year-on-year increase. Net profit attributable to shareholders is projected at approximately 6.9 billion yuan, an increase of 1,099%, while non-recurring net profit is estimated at 4.85 billion yuan, up 791% YoY. Image source: Company announcement screenshot GigaDevice noted that supply constraints in the memory chip industry during the period led to higher prices and sales volumes, improving profitability in its storage business. Microcontroller products also recorded strong shipment growth, driven by demand from the industrial, consumer, and automotive sectors. The simultaneous rise in revenue scale and profit quality drove a significant expansion in overall operating results. Additionally, the fair value of the company's securities investments increased at the end of the period, resulting in a significant increase in gains from fair value changes. The company also warned that the memory chip industry is cyclical. Future performance may be influenced by shifts in the supply-demand balance, creating a risk that profitability could decline. Gains or losses from fair value changes on securities investments—classified as other non-current financial assets—affect non-recurring items. As these gains may fluctuate with future changes in fair value, net profit could be impacted accordingly.
Liked by Nathan Turner, Liam Poirier
Liked by Nathan Turner, Liam Poirier
Liked by Nathan Turner, Liam Poirier
