①Montage technology's Q2 net profit for the quarter is expected to continue to increase for the fifth consecutive quarter, and the non-gross profit is expected to reach a new high in the same period.②With the further increase in DDR5 penetration rate, the company's sales revenue of memory interface and module supporting chips has steadily increased.③Benefiting from the AI industry boom, the company's three high-performance "transportation capacity" chip new products are showing rapid growth trends.
"Star Daily" July 5 news (Editor: Song Ziqiao). After the market closed today, Montage Technology announced that it is expected to achieve revenue of 1.665 billion yuan in the first half of 2024, a year-on-year increase of 79.49%; net income of 0.583 billion yuan - 0.623 billion yuan, a year-on-year increase of 612.73%-661.59% (6.13-6.62 times); non-GAAP net income of 0.535 billion yuan-0.565 billion yuan, a significant year-on-year increase of 139.25-147.12 times."
As of now, Lanqi Technology's net profit is expected to increase in the first half of the year, ranking third among A-share companies, second only to Shenzhen Kaizhong Precision Technology and Will Semiconductor.
Top 10 A-share companies with net profit expected to increase in the first half of the year as of press time
In terms of year-on-year growth, Lanqi Technology's net profit increased six times year-on-year, which is related to the low base of the same period last year. In the first half of 2023, Lanqi Technology's net profit was only 81.86 million yuan, a new low in the same period since listing.
In terms of month-on-month growth, in the second quarter of 2024, Lanqi Technology's quarterly net profit is expected to achieve continuous growth for five consecutive quarters, and non-GAAP net profit is expected to reach a new high for the same period. The company expects a net profit of 0.36 billion yuan-0.4 billion yuan in the second quarter of 2024, with an expected month-on-month increase of 61%-79%, a far higher growth rate than the first quarter-the company's net profit increased by 2.85% month-on-month in the first quarter.
Lanqi Technology's quarterly net profit change
▌Benefiting from the penetration rate of DDR5 and the AI wave
Lanqi Technology focuses on data processing and interconnect chip design, is the leader of domestic memory interface chips, and currently has two major product lines-interconnect chips and Jinlai server platform. The interconnect chip mainly refers to memory interface and module supporting chips (such as RCD chips based on DDR5), "capacity" chips (PCIe Retimer chips, MRCD/MDB chips, CKD chips), this part of the business has always been its revenue pillar, accounting for more than 90%.
Lanqi Technology's outstanding performance in the first half of the year is mainly due to the increase in the penetration rate of DDR5 and the AI wave, and the gradual increase in the volume of new interconnect products.
In terms of memory interface and module supporting chip-
Lanqi Technology stated that as the penetration rate of DDR5 further increases, the company's sales revenue of memory interface and module supporting chips has steadily increased month-on-month. In the first half of 2024, the company's second-generation RCD chip shipments have exceeded the first-generation RCD chip. It is expected that the sales revenue of the interconnect chip product line in the first half of 2024 will be approximately 1.528 billion yuan, and the sales revenue of the interconnect chip product line in the second quarter of 2024 will be 0.833 billion yuan, an increase of 19.92% month-on-month, which is a historical record high for a single quarter of the product line. The gross profit margin is expected to further increase month-on-month to 63%-64%.
Currently, the DDR5 market is in a state of simultaneous increase in volume and price. The latest report from TrendForce pointed out that due to Samsung's allocation of more 1alphanm production capacity to HBM, the supply has tightened, and recently there are special situation buyers inquiring about DDR5 product prices. According to CFMFlash Market, some manufacturers have added DDR5 memory orders to the original factory recently. With the AI construction boom and the increase in the penetration rate of Intel SPR CPUs, DDR5 demand has surged. It is estimated that ODMs' demand for DDR5 in the second half of this year will rise to 50%, and the demand for DDR5 64GB and above continues to be strong. DDR5 is in a state of short supply and demand.
In terms of "capacity" chips-
According to the announcement of Lanqi Technology, some new AI "capacity" chip products began to ship in large quantities, contributing new growth points for the company's performance. Lanqi Technology explicitly stated that benefited from the AI industrial boom, the company's three high-performance "capacity" chip new products have shown a rapid growth trend. In the second quarter, the total sales revenue of this business was about 0.13 billion yuan, a significant increase month-on-month.
For the three AI high-performance "capacity" chips, Lanqi Technology stated that the second-quarter shipments of PCIe Retimer chips were about 0.3 million; the sales revenue of MRCD/MDB chips in the second quarter exceeded 50 million yuan; and the second quarter CKD chips of the company began to ship in large quantities, and the single-quarter sales revenue exceeded 10 million yuan for the first time.