Montage Technology (HKEX: 06809) has released a positive profit alert announcement.

Based on preliminary calculations by the finance department, the company anticipates achieving operating revenue of approximately 33.35 billion yuan for the first half of 2026, representing a year-on-year increase of about 26.6%.

The company expects net profit attributable to shareholders for the first six months of 2026 to be in the range of 19.00 billion yuan to 21.00 billion yuan, marking a significant growth of approximately 63.9% to 81.2% compared to the same period last year.

Net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be between 12.50 billion yuan and 14.50 billion yuan, an increase of about 14.5% to 32.9% year-on-year.

Furthermore, net profit attributable to shareholders after excluding the impact of share-based payment expenses is estimated to reach 20.80 billion yuan to 22.80 billion yuan, growing by roughly 56.1% to 71.1% compared to the prior year period.

Key Drivers of Performance Growth

The company attributes the substantial growth in its operating performance for the first half of 2026 primarily to the favorable AI industry trend and strong market demand.

On one hand, as DDR5 adoption increases and its sub-generations continue to evolve, the company's shipment volume of DDR5 RCD chips has risen significantly, with the shipment proportion of third and fourth-generation RCD chips further increasing.

On the other hand, revenue from new interconnect chip products, including MRCD/MDB, PCIe Retimer, CKD, and CXL MXC chips, has climbed notably.

In the first six months of 2026, sales revenue from the company's interconnect chip product line reached approximately 31.11 billion yuan, a year-on-year increase of about 26.4%.

Specifically, for the second quarter, sales revenue from the interconnect chip product line was around 16.94 billion yuan, up approximately 28.2% year-on-year and 19.5% quarter-on-quarter.

Reasons for Profit Increase

The year-on-year growth in the company's net profit is attributed to increases in operating revenue, gross profit, investment income, and gains from changes in fair value compared to the same period last year.