Montage Technology(SH:688008) GF SECURITIES·2024-05-09 00:02Investment Rating - The report assigns a "Buy" rating to the company with a target price of 81.10 CNY per share, based on a 60x PE valuation for 2024 [4][2]. Core Insights - The company reported Q1 2024 revenue of 737 million CNY, a year-over-year increase of 75.74%, and a net profit attributable to shareholders of 223 million CNY, reflecting a staggering year-over-year growth of 1032.86% [2][3]. - The demand for memory interface chips has shown a recovery, with new products like PCIe Retimer and MRCD/MDB chips beginning to ship at scale. The interconnect chip product line generated 695 million CNY in revenue, up 68.38% year-over-year, marking a historical high for Q1 sales in this category [2][3]. - The company has three AI high-performance "capacity" chips that are experiencing strong growth. The PCIe Retimer chip has begun large-scale shipments, with Q1 2024 shipments reaching approximately 150,000 units, exceeding the total shipments for 2023 by 1.5 times [2][3]. - The MRCD/MDB chips have started large-scale trials with major domestic and international cloud computing and internet companies, generating over 20 million CNY in sales in Q1 2024 [2][3]. - The CKD chip is set to begin large-scale shipments in Q2 2024, driven by the increasing demand for higher bandwidth memory in AI PCs [2][3]. Financial Summary - The company forecasts EPS of 1.35 CNY, 2.23 CNY, and 3.50 CNY for 2024, 2025, and 2026 respectively, indicating significant growth potential [2][3]. - Revenue is expected to grow from 4.57 billion CNY in 2024 to 9.08 billion CNY by 2026, with a projected growth rate of 100.1% in 2024 [3][6]. - The gross margin for the interconnect chip product line reached 60.93%, an increase of 6.98 percentage points year-over-year, attributed to a higher proportion of revenue from high-margin products [2][3].