According to Securities Star News, on November 8, 2024, Montage Technology (688008) announced that the company would accept institutional research on November 5, 2024, and China Universal Fund Management Co., Ltd., Shenzhen Fenghetai Management Consulting Co., Ltd., Beijing Chengtianjiu Investment Co., Ltd., Yizhi (Beijing) Investment Co., Ltd., Shanghai Jinbang Equity Investment Management Co., Ltd., Hainan Fruit Private Equity Fund Management Co., Ltd., Hezhong Asset Management Co., Ltd., Dajia Asset Management Co., Ltd., Xinhua Asset Management Co., Ltd., Zhongyi Asset Management Co., Ltd., CITIC Securities Asset Management Co., Ltd., Ping An Fund Management Co., Ltd., Zhonghe Capital Management Co., Ltd., Huatai Securities Co., Ltd., China Securities Co., Ltd., Guoxin Securities Co., Ltd., Allianz Global Investors, AI-Squared Management Limited, Burgundy Asset Management Ltd, Bank of America Securities, China Investment Corporation, Coatue Hong Kong Limited, CCB Fund Management Co., Ltd., Goldman Sachs Asset Management, Hao Great China Focus Fund, JP Morgan ASIA-PAC Investment, Morgan Stanley Investment Management、Manulife Investment Management、Neuberger Berman、Point72 Asset Management LP、Panview Capital Limited、Principal Global Investors、Putnam Investments, LLC, Jiutai Fund Management Co., Ltd., RAYS Capital Partners Ltd, Regal Funds Management Asia Pte. Limited, T. Rowe Price Associates Inc, Tybourne Capital Management (HK) Limited, Wellington Management Company LLP, Yiheng Capital, Llc, Yinhua Fund Management Co., Ltd., Bosera Fund Management Co., Ltd., Cinda Australasia Fund Management Co., Ltd., Jiangxin Fund Management Co., Ltd., Taikang Fund Management Co., Ltd. participated.

The details are as follows:

Q: What products can be used in the server?

A: Montage is a leading international data processing and interconnection chip design company, committed to providing high-performance, low-power chip solutions for cloud computing and artificial intelligence. Server platform product line. In terms of servers, the company's product portfolio is becoming more and more abundant, and the products it can provide include memory interface chips (including RCD and high-bandwidth memory interface chips MRCD/MDB), memory module supporting chips (SPD/TS/PMIC), PCIeRetimer, MXC chips, programmable clock generator chips, Jindai? CPU, data protection and trusted computing acceleration chips, and HSDIMM® are more and more widely used, and the value of products in a single server has also increased significantly.

Q: What is the company's product layout in the era of artificial intelligence?

A: With the rapid progress of AI-related technologies, the world is undergoing a profound transformation from "computing" to "intelligent computing". In the era of intelligent computing, I-related applications are developing rapidly, and in the future, there will be a large number of advanced cognitive functions such as reasoning and perception, and these complex tasks will be transformed into extremely large amounts of data. It is the I infrastructure that underpins the various I applications. I infrastructure includes three core elements: (1) computing power, such as GPU, CPU, I accelerator card, etc., which is used to process massive amounts of data; (2) Storage capacity, such as DRM, NVMeSSD, HBM and other storage media, to provide data support for I; (3) Capacity, responsible for the transmission of data between computing power and computing power, storage power and storage power, computing power and storage capacity, while the rapid development of computing power and storage capacity, higher requirements are put forward for transportation capacity, and more interconnection chips are needed to provide strong transportation capacity for I infrastructure to achieve faster and more stable data transmission. Montage is focused on solving the interconnection bottleneck problem of I infrastructure, and has deployed four high-performance "capacity" chip solutions for I servers, PCIeRetimer, MRCD/MDB, and MXC chips, as well as CKD chips for IPC.

Q: How does the company achieve industry leadership in the field of memory interface chips? What are the industry thresholds for this product, and will there be new players to break the current competitive landscape in the future?

Answer: With the development and evolution of JEDEC standards and memory technology, the company has been deeply engaged in the track of memory interface chips, and has successively launched DDR2-DDR5 series memory interface chips. DDR2 generation, the global suppliers of similar products may exceed 10, after market competition and elimination, the main suppliers of the industry gradually decreased, to the DDR3 generation reduced to about 5, to the DDR4 generation mainly left 3, and in the DDR5 generation to maintain the pattern of three suppliers. The company has devoted itself to research and development in the field of memory interface chips, DDR4 generation, and the "1+9" distributed buffer memory subsystem framework invented by the company has been adopted by JEDEC as an international standard, and the company has gradually become an industry leader; In the DDR5 generation, the company takes the lead in formulating international standards for related memory interface chips, and the related technologies are leading in the world and enjoy an important voice in this field. At present, the DDR5 generation has started to iterate on the next generation, and Montage has maintained its leading R&D progress and continued to consolidate its leading position in the market. The technical and commercial threshold in the field of memory interface chips is very high. First of all, the product is a high-performance, high-speed, nonlinear analog and digital-analog mixed circuit, which is difficult to develop and requires long-term accumulation of relevant intellectual property rights and design and development experience. The key and basic patents of this product are already owned by industry leaders, and new entrants not only need to accumulate relevant technical capabilities for a long time, but also be able to not infringe on the patents of others. Second, new entrants need to keep abreast of the latest developments in JEDEC standards, and have close technical exchanges with mainstream CPU and memory manufacturers in the early stages of product development. Finally, after the product is developed, it needs to be rigorously tested and verified by mainstream CPU, memory module and system manufacturers before it can be introduced by customers. The downstream customers and partners faced by the new entrants are all leading companies in the industry, and the business entry threshold is very high. In summary, the R&D and verification introduction cycle of the product is lengthy, and if the new 6 entrants now enter the field to develop the child generation products that have been certified by the current industry leader, assuming that they can finally complete the customer introduction, the related products have also entered the end of the life cycle. Therefore, even if there are new entrants who start to deploy from now on, it will be difficult to have a substantial impact on the competitive landscape in the short to medium term.

Q: What is the company's market share in memory interface chips, and can it maintain its leading position in the DDR5 generation?

Answer: At present, there are three main manufacturers in the world that can provide memory interface chips, and the company cannot obtain accurate market share information because some competitors have not publicly disclosed the revenue of memory interface chips. According to customer and market feedback, the market share of the company's memory interface chips remains basically stable. The company DDR5RCD will continue to invest in the iterative research and development of related products, and maintain the consistent high quality and high reliability of products, and the company is confident to maintain its leading position in the field of memory interface chips.

Q: How does the company maintain its competitive edge on the PCIeRetimer chip?

A: In terms of PCIe 5.0 Retimer chips, Montage has competitive advantages in terms of product latency and channel adaptability due to Montage's self-developed core underlying technology, SerDesIP, and Montage's products are being recognized by more and more customers and downstream users. The company will continue to promote the iterative upgrade of PCIeRetimer chips, especially the self-development of core IP, maintain consistent high quality and high reliability, actively expand the market, and strive to maintain competitiveness in the future competition. In the first half of 2024, significant progress has been made in the development and verification of the key IP of the company's PCIe6.0Retimer chip, which will be applied to the company's PCIe6.0Retimer products under development. At present, the company is promoting the engineering research and development of PCIe6.0Retimer chips in an orderly manner, and is expected to complete the tape-out and sample preparation of PCIe6.0Retimer chip engineering samples within this year.

Q: What is the expected future shipment of MRCD/MDB chips? What is the current competitive landscape of MRCD/MDB chips? What is the iterative planning of the subsequent generations of MRDIMM?

A: In the third quarter of 2024, there will be fewer shipments of MRCD/MDB chips. The main reasons are as follows: MRCD/MDB chips are still in the stage of large-scale trials this year, and the large-scale shipments of MRCD/MDB chips in the first half of this year come from the demand of large-scale trials in the industry. The subsequent ramp-up of MRCD/MDB chips depends on the time-to-market of the relevant server CPU platform and the demand of downstream end users for high-bandwidth memory modules. 7According to public information and customer feedback, there are currently two suppliers in the world that can provide the first generation of DDR5 MRCD/MDB chips (supporting the rate of 8800MT/s). Montage has taken the lead in formulating international standards for MDB chips, and its R&D strength is industry-leading, and it has advantages over competitors in several technical indicators (such as power consumption). According to JEDEC's definition, the data transfer rate of the next-generation MRDIMM is expected to be 12,800MT/s, and even higher speeds are expected in the DDR5 generation. In the future, more mainstream CPUs will support the next generation of MRDIMM, thereby promoting the further improvement of the MRDIMM ecosystem and the increase in demand.

Q: What is the expected future shipment of CKD chips? What is the current competitive landscape?

Answer: In the third quarter of 2024, CKD chip shipments will be small, mainly due to the demand for CKD chips this year, which mainly comes from industry-scale trials and has not yet begun to be applied on a downstream scale. With the launch of the client CPU platform that supports DDR5-6400 memory modules, it is expected to be applied on a downstream scale from next year. The subsequent increase of CKD chips is closely related to the penetration rhythm of the relevant client CPU platform in the downstream. The company is leading in R&D in the field of CKD chips, and its products have strong competitiveness.

Q: What will be the size of clock chips in the future? What are the company's plans for the future of this product?

Answer: Clock chips mainly include clock generator chips, clock buffer chips and debounce clock chips. From the perspective of market size, clock chips are a relatively mature market with a large space. According to MarketDataForecast, the global clock chip market size totaled $2.03 billion in 2022 and is expected to reach $3.02 billion by 2027. In the first half of this year, the company completed the research and development of the mass production version of the clock generator chip, which is currently in the pre-mass production preparation stage. The company has launched the first batch of programmable clock generator chip series products, mainly for the demand for high-performance clocks in application scenarios such as storage, computing power chips, and switches.

Clock chips mainly include clock generator chips, clock buffer chips and debounce clock chips. From the perspective of market size, clock chips are a relatively mature market with a large space. According to MarketDataForecast, the global clock chip market size totaled $2.03 billion in 2022 and is expected to reach $3.02 billion by 2027. In the first half of this year, the company completed the research and development of the mass production version of the clock generator chip, which is currently in the pre-mass production preparation stage. The company has launched the first batch of programmable clock generator chip series products, mainly for the demand for high-performance clocks in application scenarios such as storage, computing power chips, and switches. On the basis of clock generator chips, the company will continue to enrich the subcategories of clock chip products, and has started the research and development of clock buffer chips (ClockBuffer). At the same time, the company will continue to enrich the product part number to meet the market's demand for multi-specification clock chips, hoping to provide customers with a complete "one-stop" solution for clock chips in the near future.

Q: What is the future trend of the company's R&D expenses?

A: In the first three quarters of 2024, the company's R&D investment was 552 million yuan, an increase of 13.42% year-on-year, accounting for 21.48% of operating income. With the development of the company's business, the company's R&D expenses will maintain a reasonable growth. The characteristics, technical reserves and R&D stage of each R&D project will be different, and the company will arrange the corresponding R&D investment according to the needs of different R&D projects.

Montage Technology Co., Ltd. (688008) provides chip-based solutions in the field of cloud computing and artificial intelligence.

Montage Technology's 2024 third quarter report shows that the company's main revenue was 2.571 billion yuan, an increase of 68.56% year-on-year; the net profit attributable to the parent company was 978 million yuan, an increase of 318.42% year-on-year; deducted non-net profit of 874 million yuan, an increase of 460.88% year-on-year; In the third quarter of 2024, the company's single-quarter main revenue was 906 million yuan, a year-on-year increase of 51.6%; the net profit attributable to the parent company in a single quarter was 385 million yuan, an increase of 153.4% year-on-year; deducted non-net profit of 330 million yuan in a single quarter, an increase of 116.83% year-on-year; The debt ratio was 5.68%, the investment income was 35.8851 million yuan, the financial expenses were -195 million yuan, and the gross profit margin was 58.12%.

A total of 20 institutions have rated the stock in the last 90 days, with 13 having a buy rating, 6 having an overweight rating and 1 having a neutral rating. The average institutional price target over the last 90 days is 79.18.

Here's the detailed earnings forecast information:

Margin data shows that the stock has a net financing inflow of 2.345 billion in the past three months, with an increase in the financing balance, and a net outflow of 5.8606 million in securities borrowing and lending, with a decrease in the balance of securities borrowing and lending.

The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.