Semiconductor company Montage Technology Co.,Ltd. (688008.SH) has issued a positive preliminary earnings forecast for the first half of 2026.

The firm anticipates generating operating revenue of approximately 3.335 billion yuan, representing a year-on-year increase of roughly 26.6%.

Net profit attributable to shareholders of the listed company is projected to be between 1.900 billion yuan and 2.100 billion yuan, marking a significant growth of 63.9% to 81.2% compared to the same period last year.

The company also expects its non-GAAP net profit, which excludes non-recurring gains and losses, to reach between 1.250 billion yuan and 1.450 billion yuan, a rise of 14.5% to 32.9% year-on-year.

Key Drivers of Financial Performance

The substantial improvement in operating performance during the first half of 2026 is primarily attributed to favorable trends in the artificial intelligence industry and robust market demand.

A key factor is the significant increase in shipments of the company's DDR5 RCD chips, fueled by rising DDR5 market penetration and ongoing generational upgrades.

Within this product line, the proportion of shipments for third and fourth-generation RCD chips has continued to grow.

Concurrently, revenue from new interconnect chip products, including MRCD/MDB, PCIe Retimer, CKD, and CXLMXC chips, has seen a notable upswing.

Interconnect Chip Segment Details

Sales revenue from the interconnect chip product line reached approximately 3.111 billion yuan in the first half, up about 26.4% from the previous year.

For the second quarter specifically, revenue from this segment was around 1.694 billion yuan, reflecting a 28.2% year-on-year increase and a 19.5% sequential growth from the first quarter.

Factors Behind Profit Growth

The rise in net profit compared to the prior year period is credited to increases in operating revenue, gross profit, investment income, and gains from changes in fair value.