Montage Technology(SH:688008) Minsheng Securities·2024-07-08 09:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company is expected to achieve a revenue of 1.665 billion yuan in H1 2024, representing a year-on-year growth of 79.49% [1]. - The projected net profit attributable to shareholders is between 583 million and 623 million yuan, showing a significant year-on-year increase of 612.73% to 661.59% [1]. - The company has seen a rapid increase in AI capacity chips, with new products being launched and quickly gaining market traction [1]. Financial Performance Summary - For Q2 2024, the company achieved a revenue of 928 million yuan, a year-on-year increase of 82.6% and a quarter-on-quarter increase of 25.8% [1]. - The net profit for Q2 2024 is estimated to be between 360 million and 400 million yuan, reflecting a year-on-year growth of 479.1% to 543.5% [1]. - The company’s interconnect chip revenue for H1 2024 reached 1.528 billion yuan, while the revenue from the server product line was 130 million yuan [1]. Product Development and Market Trends - The company has accelerated the penetration of DDR5 chips, with the second-generation RCD chips starting mass shipments in October 2023 [1]. - New AI performance chips have been launched, with significant sales growth in Q2 2024, including PCIe Retimer chips and MRCD/MDB chips [1]. - The company is positioned as a leader in the memory interface chip sector, benefiting from the accelerated adoption of DDR5 technology [1]. Future Projections - The company’s projected net profits for 2024, 2025, and 2026 are 1.433 billion, 2.180 billion, and 2.620 billion yuan, respectively, with corresponding PE ratios of 46, 30, and 25 times [1][2].