Montage Technology Co. (688008) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 905.89 million, up 51.60% year-over-year; net profit attributable to shareholders was RMB 384.92 million, up 153.40% year-over-year.

• First nine months revenue was RMB 2.57 billion, up 68.56% year-over-year; net profit attributable to shareholders was RMB 978.08 million, up 318.42% year-over-year.

• Excluding share-based payment expenses, Q3 net profit was RMB 394 million, up 116.62% year-over-year.

• Both Q3 net profit and adjusted net profit reached historical single-quarter highs.

Financial highlights

• Q3 gross margin for interconnect chips was 62.21%.

• Basic and diluted EPS for Q3 were RMB 0.34, up 161.54% year-over-year; for the first nine months, EPS was RMB 0.87, up 314.29%.

• Operating cash flow for the first nine months was RMB 1.26 billion, up 247.96% year-over-year.

• R&D investment in Q3 was RMB 185.57 million, accounting for 20.48% of revenue.

Outlook and guidance

• Growth driven by global server and computer industry recovery, DDR5 penetration, and AI industry trends.

• New high-performance chip products (PCIe Retimer, MRCD/MDB, CKD) began large-scale shipments, contributing new growth points.