MONTAGE TECH Q1 2026 revenue climbs 19.5 % to RMB 1.46 billion; net profit up 61.3 % on robust DDR5 and interconnect chip sales

Bulletin Express04-27 23:04

MONTAGE TECH reported first-quarter 2026 revenue of RMB 1.46 billion, a 19.51 % year-on-year increase, driven by accelerating adoption of DDR5 RCDs and rising contributions from new interconnect products. Gross profit margin expanded 9.3 percentage points to 69.8 %, lifting gross profit to RMB 1.02 billion.

Profit attributable to shareholders reached RMB 0.85 billion, up 61.30 %, while profit after excluding non-recurring items rose 20.14 % to RMB 0.60 billion. Basic and diluted EPS both improved to RMB 0.73 from RMB 0.46 a year earlier.

Interconnect chips remained the core growth engine, generating RMB 1.42 billion in sales, up 24.4 %. Within this segment, four new products—MRCD/MDB, PCIe Retimer, CKD and CXL MXC chips—delivered RMB 0.27 billion in revenue, soaring 93.8 % and accounting for 19 % of interconnect sales. By contrast, the Jintide product line recorded RMB 42 million, down 48.2 %.

Operating cash flow strengthened to RMB 0.63 billion, a 232.88 % surge, as higher sales collections coincided with lower payments for inventory. R&D spending grew 22.92 % to RMB 188.14 million, representing 12.88 % of revenue.

Total assets stood at RMB 21.68 billion at 31 March 2026, up 57.70 % from year-end 2025, largely reflecting proceeds from the February listing of 75.77 million H-shares in Hong Kong. Total equity attributable to shareholders rose 61.30 % to RMB 20.85 billion.

Share-based payment expenses totalled RMB 100 million, trimming reported profit by RMB 95 million after tax. Excluding this item, attributable profit would have reached RMB 0.94 billion, 56.7 % higher year-on-year.

Foreign-exchange movements generated a RMB 83 million loss amid RMB appreciation, compared with a RMB 1 million loss in the prior-year period. Management converted part of the H-share proceeds into RMB to mitigate future currency volatility.

The company stated that first-quarter revenue, interconnect chip sales, and multiple profit metrics all hit record quarterly highs.

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