Goldman Sachs: Initiates coverage of Montage Technology (06809) with a "buy" rating and a target price of HK$268.

Goldman Sachs releases research report, covering Montage Technology (06809) H shares for the first time, giving H shares a "buy" rating with a target price of 268 Hong Kong dollars; and re-initiates coverage of Montage Technology (688008.SH) A shares with a "buy" rating and a target price of 227 Chinese Yuan. The bank stated that Montage Technology, as a global leader in memory interconnect chips, has a market share of 36.8% based on revenue in 2024. The bank expects its growth to be driven by the increasing demand for advanced memory interconnect technology in cloud computing and AI infrastructure. With growing demand and rapid product expansion, the bank expects the company's revenue to grow at a compound annual growth rate of 35% from 2025 to 2032. Goldman Sachs believes that Montage Technology, with its leading market position, long-term partnerships with memory manufacturers, and proprietary intellectual property, will be able to provide long-term technological advantages as it expands into a wider interconnect chip market in the AI era. The bank's forecasts for net profit in 2026 and 2027 are 13% and 16% higher than market expectations, mainly reflecting the bank's optimism about higher revenue driven by the introduction of new products at Montage Technology.