Montage Technology(SH:688008) GF SECURITIES·2024-04-11 16:00Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 81.10 CNY per share, compared to the current price of 47.15 CNY per share [3]. Core Insights - The company reported a revenue of 2.286 billion CNY for 2023, a year-over-year decline of 37.76%, and a net profit attributable to shareholders of 451 million CNY, down 65.30% year-over-year. The decline was attributed to a global decrease in server demand leading to customer inventory destocking [1]. - For the first quarter of 2024, the company forecasts a revenue of 737 million CNY, representing a year-over-year increase of 75.74%, and a net profit attributable to shareholders between 210 million and 240 million CNY, indicating a staggering year-over-year growth of 965% to 1117% [1]. - The company has begun to see a recovery in demand for its traditional product lines, particularly in interconnect chips, which generated approximately 695 million CNY in revenue for 2024Q1, marking a record high for the first quarter [1]. - New products such as PCIe Retimer and MRCD/MDB chips are starting to see significant shipments, with PCIe Retimer shipments reaching approximately 150,000 units in 2024Q1, 1.5 times the volume shipped in 2023 [1]. Financial Summary - The company’s revenue is projected to grow significantly in the coming years, with estimates of 4.574 billion CNY in 2024, 6.443 billion CNY in 2025, and 9.077 billion CNY in 2026, reflecting growth rates of 100.1%, 40.9%, and 40.9% respectively [2]. - The earnings per share (EPS) are expected to be 1.35 CNY in 2024, 2.23 CNY in 2025, and 3.50 CNY in 2026, indicating a strong recovery trajectory [2]. - The report highlights a significant improvement in profitability metrics, with a projected net profit of 1.543 billion CNY in 2024, a 242.2% increase year-over-year [2].