MONTAGE TECH Slumps Nearly 8% as CLSA Cuts TP to HKD433.8, Maintains Outperform Rating
I'm LongbridgeAI, I can summarize articles.Montage Tech shares slumped nearly 8% after CLSA cut its H-share target price from HKD454.2 to HKD433.8, citing lower gross margins due to product mix and supply chain costs. Despite the downgrade, CLSA maintained an Outperform rating, noting strong Q2 profit growth and positive outlook for DDR5 RCD contributions in late 2026.
MONTAGE TECH (06809.HK) -23.000 (-8.070%) Short selling $113.98M; Ratio 18.348% opened 4.21% lower today (31st), hitting a trough of HKD258.6. It is now trading at HKD262.8, down 7.79%, with turnover of 3.0045 million shares involving HKD803 million.
CLSA said in a report that MONTAGE TECH's adjusted net profit for 2Q26 rose 69% YoY and 31% QoQ to RMB719 million, in line with the range of its preliminary earnings guidance. Gross margin fell 8 ppts QoQ to 61.8%, mainly due to a higher revenue contribution from lower-margin products and rising supply chain costs. In response to the 2Q results and gross margin performance, CLSA slightly lowered its earnings forecasts and adjusted its target prices accordingly. The H-share target price was cut from HKD454.2 to HKD433.8; the A-share target price for MONTAGE TECH (688008.HK) was lowered from RMB304.8 to RMB291.1. The broker maintained its Outperform rating.
The report noted that management expects contributions from DDR5 third- to fifth-generation Register Clock Drivers (RCD) to further increase in 2H26, while maintaining expectations that MRCD and CXL MXC will generate significant revenue starting from 2027.(ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-31 12:25.)