CLSA has released a research note stating that, regarding the investigation by South Korean prosecutors into three memory interface chip (MIC) manufacturers for alleged price-fixing, Montage Tech (06809) has indicated it maintains compliance and normal operations.
The firm believes that, given MIC prices follow a structured and technology-driven pricing framework, the likelihood of substantive pricing issues is low.
With Montage Tech's stock price having experienced a pullback, its attractive valuation provides an additional opportunity for accumulation.
CLSA currently maintains a target price of HK$45.42 for Montage Tech's H-shares, with a "High Conviction Outperform" rating.