Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>Montage has the largest market share in a highly concentrated market.</li>
<li>The company’s revenue growth outperformed the industry average and its gross margin hit a record high.</li>
<li>However, Montage's stock price is overvalue compared to other chip manufacturers.</li>
</ul>


Montage has the largest market share in a highly concentrated market.
The company’s revenue growth outperformed the industry average and its gross margin hit a record high.
However, Montage's stock price is overvalue compared to other chip manufacturers.


Montage (6809 HK): All Good But Price - A Supplier to Hynix, Samsung, and Micron

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>A lesser known Hong Kong Listed play on the AI Server Memory Supercycle</li>
<li>One of three suppliers at scale to Samung, SK Hynix and Micron</li>
<li>The recent price breakout of the post IPO trading range indicates the rerating has started</li>
</ul>


A lesser known Hong Kong Listed play on the AI Server Memory Supercycle
One of three suppliers at scale to Samung, SK Hynix and Micron
The recent price breakout of the post IPO trading range indicates the rerating has started


Tactical Trading: A Hong Kong Play on the AI Server Memory Supercycle

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Montage Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd-c827a672-7027-4114-b744-0fc66a5d1d98" target="_blank" data-smartkarma-citation="entities:46333:1" rel="noopener">Montage Technology (6809 HK)</a> priced its H Share at HK$106.89, raising HK$7,043 million (US$901 million) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/montage-technology-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:216984" rel="noopener">Montage Technology H Share Listing: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/montage-technology-h-share-listing-6809-hk-valuation-insights" target="_blank" data-smartkarma-citation="insights:219421" rel="noopener">Montage Technology H Share Listing (6809 HK): Valuation Insights</a>. </li>
<li>Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains attractive.</li>
</ul>



Montage Technology (6809 HK) priced its H Share at HK$106.89, raising HK$7,043 million (US$901 million) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Montage Technology H Share Listing: The Investment Case and Montage Technology H Share Listing (6809 HK): Valuation Insights. 
Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains attractive.


Montage Technology H Share Listing (6809 HK): Trading Debut

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of HK$106.89.</li>
<li>To value Montage Technology, we used three comps including GigaDevice Semiconductor (3986 HK), Renesas Electronics (6723 JP), and Rambus (RMBS US).</li>
<li>We have chosen to use a significant premium to value Montage Technology mainly due to its much stronger expected sales growth and net margins versus the comps. </li>
</ul>


Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of HK$106.89.
To value Montage Technology, we used three comps including GigaDevice Semiconductor (3986 HK), Renesas Electronics (6723 JP), and Rambus (RMBS US).
We have chosen to use a significant premium to value Montage Technology mainly due to its much stronger expected sales growth and net margins versus the comps. 


Montage Technology Hong Kong IPO Valuation Analysis

<ul>
<li>Montage Technology (6809 HK) is getting ready to complete its Hong Kong IPO next week (first date of trading is scheduled for 9 February).</li>
<li>Shares were priced at HK$106.89, the maximum of the marketing range, raising HK$7.04 billion (US$901 million). This values the company at roughly HK$180.36 billion (US$23 billion).</li>
<li>Montage is one of only three global suppliers of DDR5 memory interface chips (alongside Renesas and Rambus), holding a 36.8% market share.</li>
</ul>


Montage Technology (6809 HK) is getting ready to complete its Hong Kong IPO next week (first date of trading is scheduled for 9 February).
Shares were priced at HK$106.89, the maximum of the marketing range, raising HK$7.04 billion (US$901 million). This values the company at roughly HK$180.36 billion (US$23 billion).
Montage is one of only three global suppliers of DDR5 memory interface chips (alongside Renesas and Rambus), holding a 36.8% market share.


China

Montage Technology is an integrated circuit (IC) design company that provides IC-based solutions for cloud computing and AI infrastructure and data centers. The company offers components for memory modules, PCIe retimers, CXL Memory eXpander Controllers, clock chips, and the Jintide server platform. Montage Technology was founded in 2004 and is headquartered in Shanghai, People's Republic of China.

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Montage Technology (6809 HK)

Montage (6809 HK): All Good But Price - A Supplier to Hynix, Samsung, and Micron

Montage has the largest market share. The company’s revenue growth outperformed the industry average and its gross margin hit a record high....

Ming Lu

Tactical Trading: A Hong Kong Play on the AI Server Memory Supercycle

A less wellknown newly listed company in Hong Kong Hong Kong-listed benefiting from the AI Memory Supercycle. Recent price breakout signaling...

Rikki Malik

Montage Technology Hong Kong IPO Valuation Analysis

Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of...

Douglas Kim

Montage Technology Hong Kong IPO Preview

Montage Technology (6809 HK) is getting ready to complete its Hong Kong IPO next week. Montage is one of only three global suppliers of DDR5 memory...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Montage (6809 HK): All Good But Price - A Supplier to Hynix, Samsung, and Micron

Montage has the largest market share. The company’s revenue growth outperformed the industry average and its gross margin hit a record high....

Ming Lu

Tactical Trading: A Hong Kong Play on the AI Server Memory Supercycle

​A less wellknown newly listed company in Hong Kong Hong Kong-listed benefiting from the AI Memory Supercycle. Recent price breakout signaling...

Rikki Malik

Montage Technology H Share Listing (6809 HK): Trading Debut

Montage's international and retail oversubscription rates were significantly above the median of recent large AH listings. The AH discount remains...

Arun George

Montage Technology Hong Kong IPO Valuation Analysis

Our base case valuation of Montage Technology (6809 HK) is target price of HK$144.1 per share, representing 35% higher than the listing price of...

Douglas Kim

Montage Technology Hong Kong IPO Preview

Montage Technology (6809 HK) is getting ready to complete its Hong Kong IPO next week. Montage is one of only three global suppliers of DDR5 memory...

Douglas Kim

A less wellknown newly listed company in Hong Kong Hong Kong-listed benefiting from the AI Memory Supercycle. Recent price breakout signaling...