Montage Technology(SH:688008) Minsheng Securities·2024-04-26 02:30Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Insights - The company achieved significant growth in Q1 2024, with revenue reaching 737 million yuan, a year-over-year increase of 75.74%, and a net profit attributable to shareholders of 223 million yuan, up 1032.85% year-over-year [2]. - The growth is attributed to the recovery in demand for memory interface chips and the scale shipment of new products, particularly in the DDR5 segment [2]. - The company is expected to benefit from the accelerated penetration of DDR5 and the ongoing demand for AI high-performance chips, with projected net profits for 2024-2026 being 1.4 billion, 2.057 billion, and 2.524 billion yuan respectively [2][3]. Financial Performance Summary - Q1 2024 revenue: 737 million yuan, up 75.74% YoY, down 3.06% QoQ [2]. - Q1 2024 net profit: 223 million yuan, up 1032.85% YoY, up 2.88% QoQ [2]. - Gross margin: 57.70%, up 4.41 percentage points YoY, stable QoQ [2]. - Revenue from interconnect chips: 695 million yuan, up 68.28% YoY [2]. - The company expects to see continued growth in the DDR5 interface chip market, with historical high sales in Q1 [2]. Product Development and Market Position - The company has launched the fourth generation DDR5 interface chip, supporting data rates of 7200MT/s, and anticipates significant shipments of the second generation RCD chips in H1 2024 [2]. - The PCIe Retimer and MRCD/MDB chips have shown substantial progress, with Q1 shipments of PCIe Retimer reaching approximately 150,000 units, exceeding the total shipments for 2023 [2]. - The company has over 90 million yuan in orders for PCIe Retimer, MRCD/MDB, and CKD chips expected to be delivered in Q2 2024, indicating strong demand for its AI high-performance chips [2].