[The performance of the semiconductor industry chain has increased significantly, and the semi-annual forecasts of Weir (603501) and Montage Technology (688008) are bright].

On the evening of July 5, Weir and Montage Technology released their 2024 semi-annual performance forecasts, both of which showed a high growth trend.

Weir shares are expected to have a net profit of 1.308 billion yuan to 1.408 billion yuan in the first half of the year, an increase of 754.11% to 819.42% year-on-year; Montage Technology expects to record a net profit of 583 million yuan to 623 million yuan in the first half of the year, a year-on-year increase of 612.73% to 661.59%.

After deducting non-profits, Weir's net profit in the first half of the year was 1.318 billion yuan to 1.418 billion yuan, a year-on-year increase of 17.69 times to 18.96 times; Montage Technology's net profit after deducting non-profits was RMB535 million to RMB565 million, representing a year-on-year increase of 139.25 times to 147.12 times.

Both companies said that the performance growth was mainly due to the recovery growth of the downstream chip market demand.

Weir shares pointed out that the company's product introduction in the high-end smartphone market and the continuous penetration of autonomous driving applications in the automotive market are expected to have operating income of 11.904 billion yuan to 12.184 billion yuan, a year-on-year increase of 34.38% to 37.54%.

Montage Technology said that the demand for memory interface and module supporting chips has achieved restorative growth, the downstream penetration rate of DDR5 has increased, and the iteration of DDR5 sub-generation has continued to advance, and the shipment of DDR5 second-generation RCD chips has exceeded that of first-generation RCD chips in the first half of the year. Some new AI "capacity" chip products began to be shipped on a large scale, contributing new performance growth points to the company.

In addition to the recovery of the industry, the competitiveness of the main products has increased, and the continuous improvement of the gross profit level is also an important factor to promote the growth of performance.

In recent years, Weir has continued to promote the optimization of product structure and supply chain structure, and the gross profit margin of products has gradually recovered.

According to the data, the gross profit margin of Montage Technology's core product interconnection chip product line was 60.93% in the first quarter, and the gross profit margin of this product line has climbed to 63% to 64% in the second quarter.

Montage Technology's three high-performance "capacity" chips were rapidly released in the market, with sales revenue reaching RMB130 million in the second quarter, a significant quarter-on-quarter increase.

Montage Technology said that the demand for memory interface chips has achieved recovery growth, and the industry expects the downstream penetration rate of DDR5 to continue to increase this year and next.

Looking forward to the trend of the semiconductor industry, most people in the industry are optimistic.

As of the close of trading on July 5, the market value of Weir shares was 118.8 billion yuan, and the market value of Montage Technology was 65.4 billion yuan.