HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Montage Technology / Equity Capital Markets

<ul>
<li>As a global leader in fabless IC design, focusing on interconnect solutions for cloud computing and AI infrastructure, <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>'s 3-year EPS CAGR will reach 43.2%.</li>
<li>We assess a fair price at HK$147.4, or 45.8x FY26 PER, a 20% premium over <a href="https://www.smartkarma.com/entities/rambus-inc" target="_blank" data-smartkarma-citation="entities:7214:1" rel="noopener">Rambus (RMBS US)</a>, the third-largest player globally. <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"></a>
</li>
<li>This represents a 37.9% upside, also putting it in line with the average of 28% discount of the H-share IPOs to A-shares since 2025.</li>
</ul>


As a global leader in fabless IC design, focusing on interconnect solutions for cloud computing and AI infrastructure, Montage Technology (6809 HK)'s 3-year EPS CAGR will reach 43.2%.
We assess a fair price at HK$147.4, or 45.8x FY26 PER, a 20% premium over Rambus (RMBS US), the third-largest player globally. 

This represents a 37.9% upside, also putting it in line with the average of 28% discount of the H-share IPOs to A-shares since 2025.


Montage Technology (6809 HK) IPO: Decent Upside Potential

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.

Montage Technology   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology (688008 CH)</a>, the world's largest memory interconnect chip supplier,  has launched an H Share listing to raise US$902 million.</li>
<li>I discussed the H Share listing in <strong><em><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></em></strong>. The price momentum is strong amid a well-documented surge in memory chip prices.  </li>
<li>The proposed AH discount of 41.3% (based on the 29 January A Share price) is attractive. Overall, I would participate in the listing.</li>
</ul>



Montage Technology (688008 CH), the world's largest memory interconnect chip supplier,  has launched an H Share listing to raise US$902 million.
I discussed the H Share listing in Montage Technology H Share Listing: The Investment Case. The price momentum is strong amid a well-documented surge in memory chip prices.  
The proposed AH discount of 41.3% (based on the 29 January A Share price) is attractive. Overall, I would participate in the listing.


Montage Technology H Share Listing (6809 HK): Valuation Insights

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology (688008 CH)</a> (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$900m in its H-share listing</li>
<li>MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.</li>
</ul>



Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$900m in its H-share listing
MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.


Aequitas: Montage Technology A/H Pricing -Deal Delay Didn’t Impact Momentum

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology (688008 CH)</a> is a leading global fabless IC design company focused on offering solutions for cloud computing and AI infrastructure.</li>
<li>The company has announced the terms for a secondary listing on the HKEx and plans to raise around US$900m.</li>
<li>The company’s top line has seen strong growth over the past few years driven by cloud computing and AI infrastructure while margins are on a path to recovery.  </li>
</ul>



Montage Technology (688008 CH) is a leading global fabless IC design company focused on offering solutions for cloud computing and AI infrastructure.
The company has announced the terms for a secondary listing on the HKEx and plans to raise around US$900m.
The company’s top line has seen strong growth over the past few years driven by cloud computing and AI infrastructure while margins are on a path to recovery.  


Montage Technology H-Share Listing: Strong Growth with a Pristine Balance Sheet

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology (688008 CH)</a>, the world's largest memory interconnect chip supplier, has filed its PHIP for an H Share listing to raise US$1 billion.     </li>
<li>In 2024, Montage was the largest supplier of memory interconnect chips, with 36.8% market share.</li>
<li>The investment case rests on an industry-leading position, a robust core business, an improving margin profile, cash generation, and a reasonable valuation. </li>
</ul>



Montage Technology (688008 CH), the world's largest memory interconnect chip supplier, has filed its PHIP for an H Share listing to raise US$1 billion.     
In 2024, Montage was the largest supplier of memory interconnect chips, with 36.8% market share.
The investment case rests on an industry-leading position, a robust core business, an improving margin profile, cash generation, and a reasonable valuation. 


Montage Technology H Share Listing: The Investment Case

United States

Rambus Inc. designs, develops, licenses, and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of consumer electronics, computer systems, and other electronic systems.  The Company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology.

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Rambus (RMBS US)

Montage Technology (6809 HK) IPO: Decent Upside Potential

Montage Technology's 3-year EPS CAGR is projected to be 43.2%, with a fair price estimated at HK$147.4, a 20% premium over Rambus. This offers a...

Osbert Tang, CFA

Aequitas: Montage Technology A/H Pricing -Deal Delay Didn’t Impact Momentum

Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$900m in its H-share...

Sumeet Singh

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52-week Range

Market Cap (USDm)

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Montage Technology (6809 HK) IPO: Decent Upside Potential

​Montage Technology's 3-year EPS CAGR is projected to be 43.2%, with a fair price estimated at HK$147.4, a 20% premium over Rambus. This offers a...

Osbert Tang, CFA

Montage Technology H Share Listing (6809 HK): Valuation Insights

The price momentum is strong amid a well-documented surge in memory chip prices. The proposed AH discount of 41.3% (based on the 29 January A Share...

Arun George

Aequitas: Montage Technology A/H Pricing -Deal Delay Didn’t Impact Momentum

Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$900m in its H-share...

Sumeet Singh

Montage Technology H-Share Listing: Strong Growth with a Pristine Balance Sheet

​Montage Technology plans to raise $900m in secondary listing on HKEx. The company's top line has seen strong growth driven by growing demand for...

Shifara Samsudeen, FCMA, CGMA

Montage Technology H Share Listing: The Investment Case

Montage Technology, the world's largest supplier of memory interconnect chips, is seeking to raise US$1 billion. In this note, I discuss the...

Arun George

Montage Technology's 3-year EPS CAGR is projected to be 43.2%, with a fair price estimated at HK$147.4, a 20% premium over Rambus. This offers a...

Montage Technology plans to raise $900m in secondary listing on HKEx. The company's top line has seen strong growth driven by growing demand for...