HK Stock Market Move | Montage Technology (06809) rose nearly 3% after its performance exceeded market expectations for the first quarter. Citigroup pointed out that strong gross margins offset the impact of tight substrate supply.

Montage Technology (06809) rose nearly 3% after performance results, rising by 2.62% to 266 Hong Kong dollars with a trading volume of 5 billion Hong Kong dollars at the time of publication. On the news front, on April 27th, Montage Technology announced that it achieved operating income of 1.461 billion yuan in the first quarter of 2026, an increase of 19.51% year-on-year; net profit attributable to shareholders of the listed company was 847 million yuan, an increase of 61.3% year-on-year; and basic earnings per share were 0.73 yuan. Citi released a research report stating an increase in the target price for Montage Technology's A-shares, with H-shares increasing by nearly 49%. The bank believes that H-shares are scarce in AI infrastructure investment targets, therefore having a long-term 20%-30% premium over A-shares. The report noted that Montage Technology's first quarter performance exceeded expectations, with a strong gross profit margin of 70% offsetting the impact of limited revenue caused by substrate supply constraints. With the increasing demand for higher utilization of central processing units (CPUs) in AI intelligence, the future prospects for Montage Technology look promising. With a reasonable product line layout to meet the demand for AI infrastructure, the company is expected to be a major beneficiary of the uptrend in CPU demand.