Montage Technology Co. (688008) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 3.34 billion, up 26.7% year-over-year; net profit attributable to shareholders was RMB 1.997 billion, up 72.3% year-over-year.

• Gross margin improved to 65.3%, up 4.87 percentage points year-over-year; interconnect chip gross margin reached 69.3%.

• Cash flow from operations was RMB 1.33 billion, up 25.4% year-over-year; asset-liability ratio at 7.5%.

• H1 2026 saw strong growth in new products (MRCD/MDB, PCIe Retimer, CKD, CXL MXC), with combined revenue up 80.7% year-over-year.

• H1 2026 dividend proposal: RMB 2.00 per 10 shares, total payout RMB 241.75 million, 12.1% of net profit.

Financial highlights

• Operating income: RMB 3.34 billion (+26.7% YoY); net profit: RMB 1.997 billion (+72.3% YoY).

• Operating cash flow: RMB 1.33 billion (+25.4% YoY).

• Gross profit: RMB 2.18 billion (+36.9% YoY); interconnect chip gross margin: 69.3% (+4.95pp YoY).

• Non-recurring gains (investment and fair value): RMB 682 million (+5,939.4% YoY).

• Net assets: RMB 21.52 billion (+66.5% from 2025 year-end); total assets: RMB 23.18 billion (+68.6%).

Outlook and guidance

• Continued focus on AI-driven demand, R&D investment, and global market expansion.

• Ongoing product iteration in DDR5/DDR6, PCIe 6.x/7.0, CXL, and high-speed interconnects.

• Plans to complete PCIe 7.0 Retimer, PCIe Switch, and high-speed Ethernet PHY Retimer engineering samples in H2 2026.