Montage Technology Co. (688008) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 1.22 billion, up 65.78% year-over-year and 14.43% sequentially; net profit attributable to shareholders was RMB 525 million, up 135.14% year-over-year and 21.13% sequentially.

• Growth driven by strong AI industry demand, DDR5 memory interface chip shipments, and high-performance transport chip sales, with DDR5 penetration and product mix improvements.

• Interconnect chip sales hit RMB 1.139 billion, up 63.92% year-over-year; server platform sales reached RMB 80 million, up 107.38% year-over-year.

• Excluding share-based payment expenses, adjusted net profit was RMB 602 million, up 155.42% year-over-year.

Financial highlights

• Operating income: RMB 1.22 billion, up 65.78% year-over-year.

• Net profit attributable to shareholders: RMB 525 million, up 135.14% year-over-year.

• Adjusted net profit (excluding share-based payments): RMB 602 million, up 155.42% year-over-year.

• Operating cash flow: RMB 188 million, down 46.95% year-over-year due to increased inventory and supplier payments.

• Basic and diluted EPS: RMB 0.46, up 130% year-over-year.

Outlook and guidance

• As of April 22, 2025, interconnect chip orders for Q2 exceed RMB 1.29 billion, with continued order inflow.

• DDR5 interface chip demand and penetration expected to rise significantly in 2025; high-performance transport chip demand remains strong.