On April 10, Montage Technology (688008) disclosed its 2024 annual report, showing that its operating income during the period was 3.639 billion yuan, a year-on-year increase of 59.2%; The net profit attributable to the parent company was 1.412 billion yuan, a year-on-year increase of 213.1%. The board of directors approved the profit distribution plan and proposed to distribute a cash dividend of 3.90 yuan for every 10 shares.

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

Montage Technology said that the company's performance growth during the period was mainly due to three factors: first, the recovery of demand for memory interface chips and memory module supporting chips, the increase in the downstream penetration rate of DDR5 and the continuous iteration of the offspring, which drove the sales revenue of the company's related products to increase significantly; The second and three new high-performance capacity chips (PCIe Retimer, MRCD/MDB and CKD chips) began to be shipped on a large scale, with a total sales revenue of about 422 million yuan, 8 times that of the previous year, contributing new performance growth points to the company; Third, the sales revenue of Jindai server platform product line reached 280 million yuan, an increase of 198.87% over the previous year.

According to the announcement, 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 a gross profit margin of 62.66%, an increase of 1.3 percentage points over the previous year.

In 2024, Montage Technology's R&D expenses were RMB763 million, up 11.98% year-on-year, accounting for 20.98% of operating revenue. The company's R&D expenses have increased year by year since its listing in 2019, and the proportion of R&D expenses in operating income has exceeded 15% for three consecutive years.

On the same day, Montage Technology disclosed its earnings forecast for the first quarter of 2025. According to the preliminary calculation of the financial department, it is expected that the operating income in the first quarter will be about 1.222 billion yuan, a year-on-year increase of about 65.78%, and the net profit attributable to the parent company will be 510 million yuan to 550 million yuan, a year-on-year increase of 128.28%-146.19%.

Montage Technology said that in the first quarter of 2025, the company expects to achieve operating income, interconnection chip sales revenue, net profit attributable to owners of the parent company, and net profit attributable to owners of the parent company after deducting non-recurring gains and losses, all of which will hit a new record high in a single quarter.

According to the announcement, the sales revenue of interconnection chips in the first quarter was about 1.139 billion yuan, a year-on-year increase of about 63.92% and a month-on-month increase of about 17.19%. The total sales revenue of the company's three high-performance transportation chips was 135 million yuan, a year-on-year increase of 155%.

Montage Technology said that the growth in the first quarter benefited from the trend of the AI industry, the strong demand in the industry, and the continuous increase in DDR5 penetration, which drove the company's sales revenue of memory interface and module supporting chips to increase significantly. With the increase in the proportion of sales revenue of DDR5 memory interface chips and high-performance transportation capacity chips, the gross profit margin of the company's interconnection chip product line has further improved.

Montage Technology expects that in 2025, 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.

Boosted by good performance, Montage Technology's share price opened higher on the 11th and rose steadily, and as of the close, Montage Technology rose 7.27% to close at 75.06 yuan.