New stock preview | Will the strong sci-tech content of Montage Technology (688008.SH) bring growth momentum to Hong Kong stocks?

Leading global interconnect chip leader Montage Technology (688008.SH), may soon embark on another new capital journey outside the A-share market. Recently, this technology company, founded in 2004 and becoming one of the first listed companies on the Science and Technology Innovation Board in 2019, has officially submitted its listing application to the Hong Kong Stock Exchange. Public information shows that since its inception, Montage Technology has overcome technical and ecological challenges around server memory module memory interface chips and has launched a variety of mainstream products covering the DDR2-DDR5 generations. Currently, the company is expanding its product matrix based on memory interface technology platform and SerDes technology platform. The company's core product memory interface chips are widely used in various servers, with end customers including many well-known Internet companies and server manufacturers. According to Frost & Sullivan data, in terms of revenue, Montage Technology is already the world's largest supplier of memory interconnect chips, with a market share of up to 36.8% last year. Although the market position is very prominent, it does not necessarily mean that Montage Technology can sit back and relax. Data shows that in 2024, Montage Technology's revenue reached 3.639 billion yuan, a strong increase of 59.2% year-on-year. Among them, the company's new PCIe Retimer, MRCD/MDB, and CKD three interconnect chip products generated revenue of 423 million yuan in that year, about 8 times the previous year. However, it is worth mentioning that, as an industry "top student," Montage Technology has also had "growing pains" before. In 2022, the company's revenue and net profit were 3.672 billion yuan and 1.299 billion yuan, respectively, but the following year these figures significantly decreased. However, considering the data from last year and the first quarter of this year, which hit a historical high, Montage Technology has successfully returned to the growth track. Regaining momentum in performance With the development of modern data infrastructure, interconnectivity is playing an increasingly important role in data transmission. In the era of Moore's Law, the rapid development of CPUs has led to performance imbalances between devices, particularly between processors and memory. Imbalances like these have brought new challenges to the industrythe "memory wall" (the gap between processor speed and memory bandwidth, where the speed of processor performance improvement exceeds the speed of memory performance improvement). It is in this context that memory interface chips have emerged, which can reportedly overcome the aforementioned issue, allowing memory performance to keep up with computing demands and unleash greater system performance potential. With over 20 years of expertise and focus on solving interconnectivity challenges, Montage Technology has a competitive advantage in the field of memory interconnect chips. However, looking at the company's financial performance in recent years, Montage Technology has also undergone a "stress test." 2022 was a high point in Montage Technology's performance, with revenue reaching 3.672 billion yuan. Breaking down the revenue structure, interconnect chips contributed 2.735 billion yuan, accounting for 74.5% of revenue; revenue from the Jida server platform was 0.937 billion yuan, accounting for 25.5% of revenue. However, the following year, influenced by the industry-wide destocking, the company's annual revenue shrank to 2.286 billion yuan. Among them, revenue from the Jida server platform dropped to less than 100 million yuan, and revenue from interconnect chips also saw a significant decrease. However, just one year later, all of Montage Technology's businesses rebounded, with interconnect chip revenue reaching 3.349 billion yuan, significantly higher than in 2022, and accounting for 92% of revenue. By 2025, Montage Technology's revenue growth momentum shows no sign of slowing down. During Q1, the company's total revenue reached 1.222 billion yuan, with a year-on-year growth rate of over 60%. Interconnect chip revenue reached 1.139 billion yuan, accounting for 93.2% and continuing to achieve rapid growth; revenue from the Jida server platform also increased from less than 40 million yuan in the same period last year to 80.491 million yuan. In terms of geographical distribution...