HK Stock Market Move | Montage Technology (06809) fell nearly 5% in early trading; WLT plans to reduce its stake by no more than 0.19%; Citi expects limited impact on the share price.

Montage Technology (06809) fell nearly 5% in early trading. As of press time, it was down 4.92% at HK$285.8, with a turnover of HK$350 million. On the news front, Montage Technology announced that shareholder WLT Partners, L.P. plans to reduce its holdings by no more than 2.33 million shares, representing 0.19% of total share capital. Based on the latest closing price of RMB 214.5, the cash-out amount is approximately RMB 500 million. The reason for the reduction is the need for funds for its limited partners to exercise equity incentives. As of now, WLT Partners, L.P. holds 45.0125 million shares, representing 3.69% of total share capital. Citi expects the impact of this sale on the share price to be limited, as the scale is small and the use of funds is clear, resulting in limited impact on the share price. At the same time, it believes that Montage Technology's strong multi-year growth prospects remain intact, starting with strong order momentum in the second half of 2026 for 2027, driven by agentic AI. CPU shipment growth and memory channel upgrades should support memory interface demand, while the DDR5 sub-generation migration and the eventual arrival of DDR6 support upward movement in average selling prices and gross margins.