18 March 2026 | 1:56AM HKT Equity Research Montage (688008.SS) Interconnect IC for the age of AI; Initiate on H-share at Buy, reinstate A-share at Buy | 688008.SS | 12m Price Target: Rmb227.00 | Price: Rmb146.59 | Upside: 54.9% | | --- | --- | --- | --- | | 6809.HK | 12m Price Target: HK$268.00 | Price: HK$179.30 | Upside: 49.5% | We reinstate coverage of Montage-A at Buy with a 12m TP of Rmb227 and initiate on Montage-H at Buy with a 12m TP of HK$268. As a global leader of memory interconnect chips with 36 ...

Group 1 - Company launched an IPO with a global offering of 65.89 million H-shares, accounting for approximately 5.44% of total shares post-issue, priced at HKD 106.89 per share, raising approximately HKD 70.43 billion, with a net amount of about HKD 69.05 billion [1][10] - The IPO was highly successful, with the public offering being oversubscribed by 707.3 times and the international offering by 37.67 times [1][10] - The company attracted 17 cornerstone investors who collectively subscribed to approximately USD 450 million (around HKD 35.09 billion) of the offered shares, including notable firms such as JPMIMI, UBS, and Alibaba [1][10] Group 2 - The company, established in 2004, is a leading fabless integrated circuit design firm providing innovative, reliable, and high-efficiency interconnect solutions for cloud computing and AI infrastructure [1][10] - According to Frost & Sullivan, the company is projected to become the largest supplier of memory interconnect chips globally by 2024, with a market share of 36.8% [1][10] - As of the midday close, the company's stock price reached HKD 160.5, reflecting a 50.15% increase, with a total market capitalization of approximately HKD 194.577 billion [3][11]

Core Viewpoint - Shanghai-based memory interconnect chip giant, Lanqi Technology, has been listed on the Hong Kong Stock Exchange, with an initial share price of HKD 106.89, opening at HKD 168.00, representing a 57.17% increase and a market capitalization of HKD 203.67 billion [1][2]. Company Overview - Founded in 2004 by Yang Chonghe and Stephen Tai, Lanqi Technology is the largest memory interconnect chip company globally, with a projected market share of 36.8% in 2024 [2][3]. - The company has key investors including Alibaba Group's subsidiary Alisoft China and Huacomm Technology [2]. Financial Performance - For the first nine months of 2025, Lanqi Technology's revenue is expected to exceed the total revenue for 2024, with a significant increase in adjusted net profit [12][16]. - The company reported revenues of RMB 4.058 billion for the first nine months of 2025, with a gross margin of 61.5% [12][19]. - Historical revenue figures show a growth trajectory: RMB 3.672 billion in 2022, RMB 2.286 billion in 2023, and RMB 4.058 billion in 2025 [12][16]. Product Lines - Lanqi Technology has two main product lines: interconnect chips and the Jindai server platform, with interconnect chips accounting for over 90% of revenue [12][18]. - The company offers a full range of memory interface chips from DDR2 to DDR5, including supporting chips like SPD, TS, and PMIC [3][5]. Market Position - Lanqi Technology is recognized as one of the two leading PCIe Retimer suppliers globally and the first to launch CXL MXC chips, achieving a data rate of 12800 MT/s with its DDR5 second-generation chips [7][24]. - The company maintains strategic relationships with major global players in the AI infrastructure ecosystem, including memory module suppliers and cloud service providers [40]. Customer and Supplier Dynamics - The company’s revenue concentration is high, with its top five customers accounting for 84.3% of total revenue in 2022 and 74.8% in 2023 [25][26]. - Over 60% of Lanqi Technology's revenue comes from overseas markets, with significant contributions from major DRAM suppliers like Samsung and SK Hynix [24][22]. Research and Development - Lanqi Technology employs 576 R&D personnel, representing 74.4% of its total workforce, and holds 208 patents globally [32][33]. - The company is a board member of JEDEC and has led the development of international standards for DDR5 RCD, MDB, and CKD chips [32]. Future Outlook - The company aims to enhance its product portfolio by developing innovative Ethernet and optical interconnect solutions, further solidifying its position in the AI infrastructure market [40].

瀾起科技股份有限公司 Montage Technology Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） 股份代號 : 6809 全球發售 聯席保薦人、保薦人兼整體協調人、整體協調人、 聯席全球協調人、聯席賬簿管理人及聯席牽頭經辦人 （按英文首字母排序） 整體協調人、聯席全球協調人、聯席賬簿管理人及聯席牽頭經辦人 重要提示 重要提示： 閣下如對本招股章程的內容有任何疑問，應尋求獨立專業意見。 Montage Technology Co., Ltd. 瀾起科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 全球發售 聯席保薦人、保薦人兼整體協調人、整體協調人、聯席全球協調人、 聯席賬簿管理人及聯席牽頭經辦人 （按英文首字母排序） 整體協調人、聯席全球協調人、 聯席賬簿管理人及聯席牽頭經辦人 香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限公司對本招股章程的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本招股章程全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本招股章程連同本招股章程附錄六「送呈香港公司註冊處處長及展示文 ...

Summary of Conference Call Records Company Overview - **Company**: 澜起科技 (Lianqi Technology) - **Industry**: High-speed interconnect chips Core Insights and Arguments 1. **Transformation to High-speed Interconnect Platform**: 澜起科技 is transitioning from a traditional memory interface chip supplier to a comprehensive high-speed interconnect chip platform [1] 2. **AI Server Demand**: The demand for PCIe Retimer and Switch is driven by the data transmission bottleneck in AI applications [1][2] 3. **Product Iteration Supporting Profitability**: Rapid iteration of DDR5 RCD chips to Gen3 and Gen4 has effectively increased average selling price (ASP) and stabilized gross margins [1] 4. **New Business Revenue Contribution**: New products like PCIe Retimer, MRCD/MDB, and CKD chips have started contributing to revenue and are expected to replace traditional business as the core growth engine [1] Industry Background and Marginal Changes 1. **Interconnect Chip Importance**: The importance of interconnect chips is increasing due to the surge in data transmission needs within and between AI server systems [2] 2. **Market Dynamics in China**: The domestic market is accelerating, with expectations for domestic GPU and ASIC to ramp up significantly by mid-2026, providing further growth opportunities for 澜起科技 [2] Company Logic and Competitive Advantage 1. **Technological Leadership**: 澜起科技 holds a significant competitive advantage in the high-speed interconnect field, being one of the few global suppliers of PCIe Retimer [2] 2. **Market Share Expansion**: The company is expected to see continuous market share growth domestically and internationally starting in 2024 [2] 3. **Higher Market Potential for PCIe Switch**: The development of PCIe Switch chips using self-developed SerDes technology presents a broader potential market compared to Retimer due to higher unit prices [2] Operational and Financial Data 1. **Revenue Structure**: By the first half of 2025, revenue from new products like PCIe Retimer, MRCD/MDB, and CKD is projected to reach 294 million, accounting for 10% of total revenue [3] 2. **Future Revenue Projections**: By 2031-32, the revenue share from new products is expected to exceed 70% [3] 3. **Order Backlog**: As of October 2025, the company has over 140 million in orders for MRCD/MDB Gen2 chips [3] 4. **Product Sales Growth**: By Q3 2025, sales of DDR5 Gen3 RCD (6400MT/s) have surpassed Gen2, with Gen4 products (7200MT/s) beginning large-scale shipments [3] 5. **Profit Forecast Adjustments**: Net profit forecasts for 2025-27 have been adjusted upwards by 0%, 7%, and 9%, reflecting increased contributions from new products and improved gross margins [3] Key Catalysts and Tracking Indicators 1. **Domestic GPU Ramp-up**: The large-scale application of domestic AI chips by mid-2026 is anticipated to be a significant turning point [3] 2. **MRDIMM Penetration**: The penetration rate of MRDIMM in the server market is expected to accelerate in 2026-27 [3] 3. **CXL Standard Adoption**: The adoption scale of CXLMXC chips in 2026-27 will serve as a validation path for long-term drivers [4]

Core Viewpoint - Company expects significant profit growth in 2025, driven by strong demand in the AI industry and increased shipments of interconnect chips [1][2] Group 1: Financial Performance - Company anticipates a net profit of 2.15 billion to 2.35 billion yuan for 2025, representing a year-on-year growth of 52.29% to 66.46% [1] - The expected non-GAAP net profit is projected to be between 1.92 billion and 2.12 billion yuan, reflecting a growth of 53.81% to 69.83% compared to the previous year [1] Group 2: Industry Trends - AI is expected to continue driving growth in storage demand, with DDR5 memory interfaces gaining traction and contributing to higher average selling prices and gross margins for the company's products [2] - The penetration rate of DDR5 memory interface chips has significantly increased since 2025, with sales of the third generation RCD chips surpassing those of the second generation for the first time [2] - The company is a leading figure in setting international standards for DDR5 RCD chips, maintaining its industry leadership in memory interconnect chips [2] Group 3: Product Development - New interconnect chip products, including PCIe Retimer, MRCD/MDB, CKD, and MXC chips, are gaining recognition from end customers, which is expected to positively impact the company's performance [2] - Discussions on DDR6 standards are ongoing, with expectations that DDR6 memory modules will require more complex interconnect chips, potentially expanding the market size for memory interconnect chips [2]

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Post Hearing Information Pack, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Post Hearing Information Pack. Post Hearing Information Pack of Montage Technology Co., Ltd. 瀾起科技股份有限公司 (the "Company") (A joint stock company ...

Core Viewpoint - The semiconductor industry is experiencing a surge in Hong Kong listings, with leading companies like 澜起科技 (Lianqi Technology) accelerating their progress towards dual capital platforms amid a booming AI-driven demand for memory interconnect chips [2][3]. Group 1: Company Overview - 澜起科技 is a fabless integrated circuit design company focused on providing interconnect solutions for cloud computing and AI infrastructure, holding a 36.8% market share as the largest global supplier of memory interconnect chips [2][3]. - The company is also a key player in the PCIe Retimer market and the first to launch CXL MXC chips, actively participating in the international standardization of DDR5 chips as a board member of JEDEC [2][3]. Group 2: Product and Market Position - 澜起科技's core products include a full range of DDR memory interface chips and high-performance chips like PCIe Retimer and CXL MXC, designed to meet the demands of AI-era computing systems [3]. - The company plans to expand its product matrix into Ethernet and optical interconnect fields, further enhancing its offerings [3]. Group 3: Financial Performance - In the first three quarters of the year, 澜起科技 reported revenues of 4.058 billion yuan, a year-on-year increase of 57.83%, and a net profit of 1.632 billion yuan, up 66.89% [4]. - The gross margin for the same period reached 61.46%, an increase of 3.34 percentage points compared to the previous year [4]. Group 4: Market Trends and Projections - The AI-driven demand is expected to significantly boost the memory interconnect chip market, with projections indicating a growth from $1.2 billion to $5 billion between 2024 and 2030, at a compound annual growth rate (CAGR) of 27.4% [3]. - The PCIe and CXL interconnect chip market is forecasted to grow from $2.3 billion to $9.5 billion, with a CAGR of 26.7% during the same period [3].

Group 1 - The semiconductor industry is experiencing a renewed wave of companies seeking to list in Hong Kong, with major players like OmniVision, GigaDevice, and Unisoc submitting applications or announcing hearing approvals in December [1] - The global memory interconnect chip leader, Montage Technology, is advancing its Hong Kong listing process, having received approval from the China Securities Regulatory Commission and completed the Hong Kong Stock Exchange hearing review [3] - Montage Technology is a fabless integrated circuit design company focused on interconnect solutions for cloud computing and AI infrastructure, holding a 36.8% market share in the global memory interconnect chip market as of 2024 [3] Group 2 - The AI-driven demand is significantly boosting the storage industry, with Gartner predicting global generative AI spending to reach $644 billion by 2025, a 76.4% increase from 2024 [4] - The NAND Flash prices have surged approximately 246% since the beginning of Q1 2025, with 70% of this increase occurring in the last 60 days [4] - The global memory interconnect chip market is projected to grow from $1.2 billion to $5 billion between 2024 and 2030, with a compound annual growth rate (CAGR) of 27.4% [4] Group 3 - Montage Technology reported impressive performance in the first three quarters of 2025, achieving revenue of 4.058 billion yuan, a year-on-year increase of 57.83%, and a net profit of 1.632 billion yuan, up 66.89% [4] - The company's gross margin for the first three quarters reached 61.46%, an increase of 3.34 percentage points compared to the same period last year [4] - The business consists of interconnect chips and server platform products, with interconnect chips being the core growth driver, serving major clients like Samsung, SK Hynix, and Micron [5]

Core Viewpoint - The significant growth in the company's performance in the first half of 2025 is primarily driven by the booming demand in the AI industry and the increased sales of DDR5 memory interface and module supporting chips [1] Group 1: Performance Drivers - The company benefits from the AI industry trend, leading to a substantial increase in the shipment volume of DDR5 memory interface and module supporting chips, with a notable rise in the sales revenue from second and third generation RCD chips [1] - The sales revenue from three high-performance transport chips (PCIe Retimer, MRCD/MDB, and CKD) reached 294 million yuan, marking a significant increase compared to the same period last year [1] - The overall gross margin of the company improved to 60.44%, an increase of 2.66 percentage points year-on-year, due to the rising sales revenue share of DDR5 memory interface chips and high-performance transport chips [1]