Lanqi Technology Q1 net profit of 847 million yuan sets a new record for a single quarter

Montage Technology disclosed its Q1 report for 2026 on Monday, achieving a revenue of 1.461 billion yuan during the period, a year-on-year increase of 19.51%; net profit attributable to the parent company was 847 million yuan, a year-on-year increase of 61.30%, setting a new historical record for a single quarter.

The core driver comes from the new sub-generation of DDR5 and the volume increase of interconnect new products.With the increasing penetration of DDR5 and the iteration of product generations, the proportion of shipments of the third and fourth sub-generation RCD chips has increased. The revenue from the new sub-generation of DDR5 with high gross margin and interconnect new products has increased, pushing the company's overall gross margin to 69.8%, an increase of 9.3 percentage points over the same period last year.

In the first quarter, the sales revenue of interconnect chip product lines was 1.417 billion yuan, a year-on-year increase of 24.4%; the combined revenue of four new products, MRCD/MDB, PCIe Retimer, CKD, and CXL MXC, was 269 million yuan, a year-on-year increase of 93.8%, and their proportion of interconnect chip revenue increased to 19.0%.

However, the net profit for the first quarter was not entirely contributed by the main business. The total investment income and changes in fair value income were 233 million yuan, an increase of more than 12 times year-on-year, which significantly supplemented the profit; R&D investment, share-based payment expenses, and exchange losses are constraint items on the subsequent profit statement.

In terms of financial structure, Montage Technology completed the listing of H shares in February, issuing a total of 75.77 million shares, including over-subscription rights, raising over 7.1 billion yuan in funds. The cash increased to 14.62 billion yuan, the equity attributable to the parent increased to 20.85 billion yuan, and the asset-liability ratio is about 4.2%.

Content is for reference only, not financial advice.