On the evening of February 24, Montage Technology (688008) released its 2024 annual results.

According to the disclosure, the company achieved operating income of 3.639 billion yuan, a year-on-year increase of 59.20%; the net profit attributable to the owners of the parent company was 1.412 billion yuan, a year-on-year increase of 213.10%; The net profit attributable to the owners of the parent company was 1.248 billion yuan, a year-on-year increase of 237.44%.

Montage Technology Co., Ltd. is an integrated circuit design company, the company's interconnection chip products mainly include memory interface chips (including MRCD/MDB chips), memory module supporting chips, CKD chips, PCIe Retimer chips, MXC chips, etc., and Jintide server platform products include Jintide CPU and Hybrid Secure Memory Module (HSDIMM).

Talking about the reasons for the growth of performance, Montage Technology said that in 2024, the company's operating performance increased significantly compared with the previous year, the main reasons are: on the one hand, benefiting from the gradual recovery of demand in the global server and computer industry, the company's demand for memory interface and module supporting chips has achieved restorative growth, and at the same time, benefiting from the improvement of DDR5 downstream penetration rate and the continuous iteration of the offspring, the company's DDR5 memory interface chip shipments have exceeded DDR4 memory interface chips. DDR5 second-generation memory interface chip shipments exceeded that of first-generation products; On the other hand, benefiting from the promotion of the AI industry trend, the company's three new high-performance capacity chip products (PCIe Retimer, MRCD/MDB and CKD) began to be shipped on a large scale, among which: PCIeRetimer chips were applied on a downstream scale, MRCD/MDB chips and CKD chips began to be tried on an industry scale, and the total sales revenue of the three new products was about 422 million yuan, which was 8 times that of the previous year, contributing new performance growth points to the company.

In terms of business, in 2024, the company's interconnection chip product line achieved sales revenue of 3.349 billion yuan, an increase of 53.31% over the previous year, and the gross profit margin was 62.66%, an increase of 1.30 percentage points over the previous year, and the sales revenue of Jindai server platform product line reached 280 million yuan, an increase of 198.87% over the previous year.

"In 2024, the company's interconnection chip sales revenue, net profit attributable to the owners of the parent company, and non-net profit attributable to the owners of the parent company will all hit a record high in the company's history." Montage Technology introduced in the performance report.

Judging from the situation in the fourth quarter, the performance accelerated significantly. Montage Technology achieved operating income of 1.068 billion yuan, an increase of 40.43% year-on-year and 17.90% month-on-month, of which: the sales revenue of the interconnection chip product line was 972 million yuan, an increase of 40.27% year-on-year and 14.54% month-on-month, and the gross profit margin was 63.42%, an increase of 1.21 percentage points over the third quarter, and the third-generation RCD chip of DDR5 began to be shipped on a large scale, and the net profit attributable to the owners of the parent company was 434 million yuan, a year-on-year increase of 99.72%. month-on-month growth of 12.67%; The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 374 million yuan, an increase of 74.87% year-on-year and 13.63% month-on-month. The main reason for the increase in the company's operating performance in the fourth quarter of 2024 was the strong demand for DDR5 memory interface chips and the increase in shipments.

In the fourth quarter of 2024, the company's operating income, interconnection chip sales revenue, net profit attributable to owners of the parent company, and non-net profit attributable to owners of the parent company all hit a record high in a single quarter.

The Securities Times reporter noticed that in addition to Montage Technology, it handed over a brilliant report card; That night, Haiguang Information, Torch Core Technology, Nanxin Technology and many other chip industry chain enterprises also reported good news. Among them, Haiguang Information's operating income in 2024 will be 9.162 billion yuan, a year-on-year increase of 52.40%; net profit attributable to owners of the parent company was 1.929 billion yuan, a year-on-year increase of 52.73%. The company focuses on the R&D and innovation of high-end processors, further expands the application fields of its products, and continues to improve customer recognition, which promotes the rapid growth of performance.

According to Nanxin Technology's performance report, the company's total operating income will reach 2.567 billion yuan in 2024, a year-on-year increase of 44.19%; net profit was 303 million yuan, a year-on-year increase of 16.02%; Basic earnings per share was 0.72 yuan. The company's product matrix has been steadily expanded and continuously optimized and innovated, while operating income has increased with the recovery of the industry and the recovery of end market demand.

In 2024, Torch Core Technology will achieve a total operating income of 652 million yuan, a year-on-year increase of 25.34%; net profit was 106 million yuan, a year-on-year increase of 62.9%; According to reports, during the reporting period, the company's products performed well, and the end-side AI processor chip continued to increase its shipments with the advantages of low power consumption and high computing power, and its sales revenue increased by multiples; Low-latency and high-quality wireless audio products continued to increase in volume, and sales continued to rise; The Bluetooth speaker SoC chip series continues to increase the penetration of the top audio brands, and continuously deepens the breadth and depth of the company's cooperation with customers.