Goldman Sachs Significantly Raises Target Price for Innolux Tech, A-shares have 50% Upside Potential
Goldman Sachs released the latest research report on Montage Technology on May 13th, significantly raising the 12-month target price for A-shares from 260 yuan to 363 yuan, an increase of about 40%; the H-share target price was raised from 306 HKD to 510 HKD, an increase of about 67%, while maintaining a buy rating. The current A-share price is 240.70 yuan, corresponding to an upward space of about 50.8%; the current H-share price is 413 HKD, corresponding to an upward space of about 23.5%.">688008.SS/6809.HK) latest research report, significantly raising the 12-month target price for A-shares from 260 yuan to 363 yuan, an increase of about 40%; the H-share target price was raised from 306 HKD to 510 HKD, an increase of about 67%, while maintaining a buy rating.
Core Logic: AI Inference Workloads Drive New Demand for Memory Interface Chips
The significant increase in target price is backed by a new incremental logic: with the accelerated普及 of AI Agents, CPUs are taking on increasingly heavier inference tasks—including task management, task orchestration, and memory management.
These types of workloads significantly increase the demand for memory interface chips (Memory Interface IC) that connect memory modules to CPUs, which is exactly the core product area of Montage Technology.
Goldman Sachs estimates that Montage Technology's net profit compound annual growth rate (CAGR) from 2026 to 2028 will reach 38%. Specifically, the traditional RCD (RDIMM Memory Registered Clock Driver) business is expected to maintain a CAGR growth of 8% from 2025 to 2032; while MRCD/MDB products aimed at higher bandwidth server memory modules are expected to achieve a CAGR growth of up to 98% from 2025 to 2032, mainly benefiting from the continuous increase in the penetration rate of MRDIMM technology.
New Product Revenue Rapidly Increases, R&D Pipeline Continues to Expand
In the first quarter, the combined revenue of Montage Technology's four new products (MRCD/MDB, PCIe Retimer, CKD, CXL MXC) reached 269 million yuan, accounting for 19% of the interface chip business revenue.
Management disclosed that PHY Retimer and PCIe Switch will both complete tape-out in 2026, and the optical interconnect chip is currently in the development stage. Goldman Sachs believes that once the above R&D products are launched to the market, they will face strong support from the demand for high-end high-speed interconnect chips, and the competitors are scarce.
Profit Forecast Increased, Gross Margin Improves Synchronously
Goldman Sachs increased the net profit forecast for 2026 to 2032 by 4% to 10%, mainly from double revisions of revenue and gross margin.
The increase in revenue reflects: first, the positive outlook of the existing memory interface IC business, driven by the growth of CPU and RDIMM/MRDIMM demand; second, the optimistic expectations of the new product pipeline.
The increase in gross margin reflects the increase of the proportion of new products—Montage Technology's new products usually have a higher gross margin when they first launch, and then gradually narrow down with annual price decreases.
Core data: In 2026, the estimated revenue is 8.12 billion yuan, net profit is 3.81 billion yuan, gross margin is 67.3%, net profit margin is 46.9%; in 2030, the
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