Shares of Montage Technology (06809) rose more than 10% during the trading session. As of the time of writing, the stock is up 6.98%, trading at HK$272.80 with a turnover of HK$242 million.

Citi published a research report noting that Montage Technology has announced strong preliminary results for the first half of 2026. Second-quarter net profit is estimated to be between 1.053 billion and 1.253 billion yuan, representing a year-on-year increase of 66% to 98%. These figures exceed the market consensus and Citi's own expectations by 37% and 42%, respectively, primarily driven by higher revenue scale, gross margin expansion, and investment gains. Revenue for the period grew 33% year-on-year to 1.874 billion yuan, surpassing market and Citi's expectations by 6% and 11%, respectively. Revenue from interconnect chips increased 28% year-on-year to 1.694 billion yuan. DDR5 RCD shipments continued to grow, with the proportion of Gen 3 and Gen 4 products further expanding.

Citi stated that Montage Technology's H-shares provide a rare opportunity for international investors to participate in the expansion of AI data centers in China and globally. The company's strong AI theme has gained favor among international investors, leading to a premium for its H-shares over its A-shares. The bank set a target price of HK$305 for its Hong Kong-listed shares, corresponding to a forecasted 2027 price-to-earnings ratio of 66 times, and maintained its "Buy" rating.