Montage Technology(SH:688008) Minsheng Securities·2024-07-07 23:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Insights - The company is expected to achieve a revenue of 1.665 billion yuan in the first half of 2024, representing a year-on-year growth of 79.49%. The net profit attributable to shareholders is projected to be between 583 million and 623 million yuan, showing a significant increase of 612.73% to 661.59% year-on-year [1]. - In Q2 2024, the company reported a revenue of 928 million yuan, which is an 82.6% increase year-on-year and a 25.8% increase quarter-on-quarter. The net profit attributable to shareholders is expected to be between 360 million and 400 million yuan, reflecting a year-on-year growth of 479.1% to 543.5% [1]. - The company is a leader in the memory interface chip sector and is benefiting from the accelerated penetration of DDR5 technology. The introduction of new products such as PCIe retimer and various memory controllers is expected to drive future growth [1]. Financial Performance Summary - For the first half of 2024, the company anticipates interconnect chip revenue of 1.528 billion yuan and revenue from the Tsindai server product line of 130 million yuan. In Q2 2024, interconnect chip revenue reached 833 million yuan, a year-on-year increase of 67.6%, while the Tsindai server product line revenue was 91 million yuan, showing a year-on-year growth of 911.1% [1]. - The company has begun mass shipments of DDR5 second-generation RCD chips and expects to start large-scale shipments of the third-generation RCD chips in the second half of 2024. The fourth-generation RCD chips are set to be launched in January 2024 [1]. - The company has launched several high-performance AI chips, with significant sales growth in Q2 2024, including 300,000 PCIe retimer chips shipped monthly, and over 50 million yuan in revenue from MRCD/MDB chips [1]. Financial Forecast - The company forecasts net profits of 1.433 billion yuan, 2.180 billion yuan, and 2.620 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 46, 30, and 25 times [2][6].