Montage Technology(SH:688008) Changjiang Securities·2024-05-06 02:02Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - In Q1 2024, the company achieved revenue of 737 million yuan, a year-on-year increase of 75.74%, and a net profit attributable to shareholders of 223 million yuan, a year-on-year increase of 1038.86% [5][6] - The growth is attributed to the recovery in demand for memory interface chips and the scale production of new products, with expectations for continued growth driven by the penetration of DDR5 and the promotion of products like CXL, PCIe Retimer, CKD, and TianDai servers [6][7] Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 737 million yuan, up 75.74% year-on-year, and a net profit of 223 million yuan, up 1032.86% year-on-year, with a gross margin of 57.7% [6] - The interconnect chip revenue reached 695 million yuan, a year-on-year increase of 68.38%, with a gross margin of 60.93% [6] - The TianDai server platform revenue was 39 million yuan, a significant increase of 614.61% year-on-year [6] Product Development - The company invested 176 million yuan in R&D in Q1 2024, representing 23.88% of revenue [6] - The DDR5 second and third generation RCD chips are expected to see significant increases in shipment volumes, with the second generation expected to surpass the first in H1 2024 [6] - The PCIe Retimer has been successfully integrated into major cloud computing and internet companies' AI server procurement projects, with shipments reaching approximately 150,000 units in Q1 2024, 1.5 times the volume of 2023 [6] Future Outlook - The company is expected to see continued revenue growth driven by the recovery in demand and the accelerated penetration of DDR5 [7] - Projected net profits for 2024, 2025, and 2026 are 1.369 billion yuan, 2.327 billion yuan, and 2.763 billion yuan respectively, with corresponding EPS of 1.20 yuan, 2.04 yuan, and 2.42 yuan [7]