Montage Technology - H: Read through of 1H26 preliminary results and update on Korea investigation

研报英文原文证据摘录

Montage Technology - H: Read through of 1H26 preliminary results and update on Korea investigation

dicated it will keep investors updated as

12/27E 4.87 4.78

additional information becomes available from the Korean authorities. 12/28E 7.59 6.84

Near-term demand outlook remains solid; share buyback proposed Jimmy Yu

AnalystAccording to management, the product mix of memory interface chip shipments

jimmy.yu@ubs.com

continued to improve in 2Q26, with Gen3/Gen4 RCDs accounting for 50%+ of total

+86-21-3866 8880

RCD shipments in Q2, while Gen5 RCDs began volume shipments in the quarter. For

MRCD/MDB, Montage sees strong interest from both overseas and domestic CSP Yongwei Lai

Analystcustomers. For other high-speed interconnects, PCIe retimer 6.0 and CXL MXC 3.1 are

S1460524110001

being sampled by customers, and the company aims to complete the tape-out of PCIe

yongwei.lai@ubs.com

retimer 7.0, PCIe switch, and Ethernet PHY retimer by year-end. While the development +86-21-3866 8780

of new products remains on track, high volume growth still depends on the ramp of

Xinlei Linext-generation CPU platforms (AMD Venice and Intel Diamond Rapids), likely from

Analyst

early 2027. Separately, management proposed a share buyback plan of Rmb300m-

S1460522090008

600m, reflecting its confidence in the company's long-term growth prospects and xinlei.li@ubs.com

commitment to enhancing shareholder returns. +86-21-3866 8805

Valuation: Price target of HK$380.00; reiterate Buy

Our price target is based on 70x 2027E PE, implying 1.6x PEG ratio (based on 45%

EPS CAGR in 2027-30E).

Highlights (Rmbm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 2,286 3,639 5,456 7,412 11,362 17,183 24,707 32,781

EBIT (UBS) 204 1,009 1,856 3,169 5,695 9,238 13,743 18,591