Montage Technology (688008.SS): Mgmt. Update Takeaways: Strong Fundamentals Intact Despite Near-Term Share Volatility

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Montage Technology (688008.SS): Mgmt. Update Takeaways: Strong Fundamentals Intact Despite Near-Term Share Volatility

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19 Jul 2026 20:47:54 ET │ 14 pages

Montage Technology (688008.SS)

Mgmt. Update Takeaways: Strong Fundamentals Intact Despite Near-

Term Share Volatility

CITI'S TAKE Buy

Price (17 Jul 26 15:00) Rmb183.600 We followed up with Montage mgmt. after announcement of 1H26 results,

Target price Rmb245.000 Korea antitrust probe, and share repurchase plan. Business fundamentals

remain strong: Revenue and profit reached record-high in 2Q26 as the Expected share price return 33.4%

substrate shortage situation improved. Contribution from new products Expected dividend yield 0.3%

(Gen 3/4 RCD, MRCD/MDB, PCIe retimer, CXL) further increased. Expected total return 33.8%

Montage will release GPM, non-op profit later with the full 1H26 results on Market Cap Rmb210,179M

August 29th. Montage shares sank further on Friday despite the share US$31,049M

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. Kevin ChenAC

While shares may remain volatile near-term, we stay positive on Montage +852-2501-2125

as a conviction Buy with share re-rating to be supported by strong kevin.y.chen@citi.com

fundamentals. Kyna Wong

kyna.wong@citi.com

Record 2Q26 results – Montage pre-announced its 1H26 results on July 16th guiding Karen Huang

2Q26 net profit of Rmb1.05-1.25bn, up 66%-98% YoY. The record profit was driven karen.xw.huang@citi.com

by: 1) record revenue of Rmb1.9bn (interconnectivity revenue Rmb1.7bn), 2) GPM Yiming Li, CFA