The Point for Asia Pacific

Research evidence excerpt

The Point for Asia Pacific

models and applications, like Alibaba, could be better positioned to lead, in our

view. We believe the market may also be overlooking the value of Tencent's real-

world AI applications, like WorkBuddy, which has demonstrated...

Alicia Yap, CFA

Country Top Calls

Montage Technology (688008.SS) - Mgmt. Update Takeaways: Strong

Fundamentals Intact Despite Near-Term Share Volatility

We followed up with Montage mgmt. after announcement of 1H26 results, Korea

antitrust probe, and share repurchase plan. Business fundamentals remain strong:

Revenue and profit reached record-high in 2Q26 as the substrate shortage

situation improved. Contribution from new products (Gen 3/4 RCD, MRCD/MDB,

PCIe retimer, CXL) further increased. Montage will release GPM, non-op profit later

with the full 1H26 results on August 29th. Montage shares sank further on Friday

despite the share repurchase plan under strong market volatilities and concerns

over the Korea antitrust investigation, for which Montage is in full cooperation and

not accused of any wrongdoing. Valuation is compelling with Montage-A and

Montage-H trading at only 45x and 55x 2027E P/E, respectively. While shares

may remain volatile near-term, we stay positive on Montage as a conviction Buy

with share re-rating to be supported by strong fundamentals.

Kevin Chen | Kyna Wong | Karen Huang | Yiming Li, CFA

Reliance Industries (RELI.BO) - 1QFY27: O2C & Oil & Gas Deliver, Retail

Disappoints; Mgm’t Outlines 3-yr Roadmap to Double Retail EBITDA

RIL delivered a strong 1Q, with EBITDA up 8% QoQ to Rs475bn, in line with our

estimates (modestly ahead of consensus). Key highlights: 1) O2C EBITDA rose 17%

QoQ to Rs170bn, in line with our expectations but likely ahead of consensus; 2)