On the evening of April 10, Montage Technology (688008) released its 2024 annual report and 2025 Q1 earnings forecast.

According to the financial report, in 2024, the company will achieve operating income of 3.639 billion yuan, a year-on-year increase of 59.20%; In the same period, the company's net profit attributable to the parent company was 1.412 billion yuan, a year-on-year increase of 213.1%.

According to the disclosure, the main reasons for the substantial growth of the company's operating performance in 2024 include: 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 subgeneration, the company's DDR5 memory interface chip shipments exceed DDR4 memory interface chips, and the shipments of DDR5 second-generation memory interface chips exceed the first generation; 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 them: PCIe Retimer 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.

During the reporting period, 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.

From the perspective of the fourth quarter, the company 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, an increase of 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 of DDR5 RCD chips began to be shipped on a large scale, and the net profit attributable to the parent company was 434 million yuan, a year-on-year increase of 99.72%. Month-on-month, it increased by 12.67%. 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.

Montage Technology is a leading international data processing and interconnection chip design company, committed to providing high-performance, low-power chip solutions for cloud computing and artificial intelligence.

"At present, the rapid development of AI technology and applications has driven a surge in the demand for computing power and storage power, and transportation capacity, that is, the efficiency of data transmission between computing and storage and within it, has become a bottleneck restricting system performance. A high-performance AI system needs to have strong computing power to support data processing, large-capacity storage to ensure data supply, and high-performance transportation capacity to achieve high-bandwidth and low-latency data transmission. The company analyzed when talking about industry trends.

Based on this, Montage Technology's strategic goal in the next five to ten years is to gradually grow into a world-leading fully interconnected chip design company, focusing on the field of transportation capacity chips, and providing users with a wide range of high-speed interconnect chip solutions with combined competitiveness through continuous R&D and innovation, helping to achieve more efficient and stable data interconnection in the field of cloud computing and artificial intelligence infrastructure.

Talking about the 2025 business plan, according to the company, in terms of DDR5 memory interface chips, it will promote the research and development of the mass production version of DDR5 sub-generation RCD chips, and start the engineering research and development of the sixth-generation RCD chips to maintain technological leadership; In terms of high-performance capacity chips, we will promote the research and development of the mass production version of the second generation MRCD/MDB chip of DDR5, and start the engineering research and development of the third generation of products; Promote the sampling and optimization of PCIe 6.x/CXL 3.x Retimer chips, and carry out the engineering research and development of PCIe 7.0 Retimer chips; In terms of clock chips, the product models of clock chips are further enriched, including: completing the research and development of the mass production version of the clock buffer chip, continuing to develop clock generator chips to meet the needs of more application scenarios, and starting the engineering research and development of debounced clock chips.

According to the performance forecast disclosed that night, the company expects to achieve operating income of about 1.222 billion yuan in the first quarter of 2025, a year-on-year increase of about 65.78%; In the same period, the net profit attributable to the parent company was 510 million yuan to 550 million yuan, a year-on-year increase of 128.28% to 146.19%. The performance growth was mainly due to the trend of the AI industry, the strong demand of the industry, the continuous improvement of DDR5 penetration, and the growth of sales revenue of the company's high-performance transportation capacity chips. Looking forward to the whole year of 2025, it is expected that the demand and penetration rate of DDR5 memory interface chips will increase significantly compared with 2024, and the demand for high-performance transportation capacity chips will show a good growth trend.