# Montage Technology (688008.SHG)

Canonical: https://gigainvestors.com/s/688008.SHG

Analysis as of: 2026-10-16T07:34:20.742Z. Financial observations: FY2016–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 163.00 per share; close as of 2026-10-15.

Estimated value: low CNY 34.16 per share, central CNY 36.84 per share, high CNY 40.42 per share. Buy at or below the central value CNY 36.84 per share. Valuation as of 2026-10-16T07:34:20.742Z; scenarios are not confidence intervals.

Expected annual return: 4.0% at the stated quote. About 4.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.35×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.38×

- FY2018: 0.45×

- FY2019: 0.56×

- FY2020: 0.66×

- FY2021: 0.36×

- FY2022: 0.39×

- FY2023: 0.21×

- FY2024: 0.39×

- FY2025: 0.43×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- Recent gross margin fell 7.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 49.7%

- ROIC, second-lowest year: 16.3%

- Typical minus recent gross margin: 7.9 pp

- Typical gross margin (annual median): 64.8%

- Recent gross margin (lower of latest and 3-year median): 56.9%

- Years with nonpositive capital: 2

- Capital spending / revenue: 6.1%

- ROIC including acquisitions, ten-year median: 49.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 19.3%

- FY2017: 70.3%

- FY2018: 20.3%

- FY2019: 12.7%

- FY2020: 62.8%

- FY2021: 51.6%

- FY2022: 53.0%

- FY2023: 16.3%

- FY2024: 47.8%

- FY2025: 63.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.9B

- Net income, five-year total: CNY 6.2B

- Return on incremental invested capital: 84.4%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -10.2 pp

- Working capital / revenue, final three-year average: 22.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.26×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.3% vs 47.8%

- Per-share earnings: 0.46 to 1.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.2%

- Per-share value growth: 15.4%

- Per-share value change: CNY 0.79

- Per-share value, starting three-year median: CNY 0.46

- Per-share value, ending three-year median: CNY 1.25

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.4%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 9.4B

- ROIC, first three-year median: 20.3%

- ROIC, last three-year median: 47.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.12

- FY2017: CNY 0.46

- FY2018: CNY 0.82

- FY2019: CNY 0.85

- FY2020: CNY 0.98

- FY2021: CNY 0.74

- FY2022: CNY 1.15

- FY2023: CNY 0.40

- FY2024: CNY 1.25

- FY2025: CNY 1.96

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 1.6%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 22.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.90×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -26.2%

- FY2017: 8.1%

- FY2018: -5.6%

- FY2019: 0.8%

- FY2020: 1.2%

- FY2021: 1.7%

- FY2022: 5.7%

- FY2023: -2.6%

- FY2024: -2.3%

- FY2025: 1.6%

## Holders

## Price story

Down 47% since Jun 2026 · sales +49.9%

Story as of 2026-10-16T10:00:00.160Z; price observation 2026-10-15.

Price needs cash profits to grow 25.4% a year for ten years

### Sales · FY2024–2025

sales +49.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 558M 

- FY2017: CNY 942M 

- FY2018: CNY 1.8B 

- FY2019: CNY 1.7B 

- FY2020: CNY 1.8B 

- FY2021: CNY 2.6B 

- FY2022: CNY 3.7B 

- FY2023: CNY 2.3B 

- FY2024: CNY 3.6B 

- FY2025: CNY 5.5B 

### Gross margin · FY2024

gross margin 56.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 86.1% 

- FY2017: 60.8% 

- FY2018: 69.9% 

- FY2019: 68.9% 

- FY2020: 71.4% 

- FY2021: 48.0% 

- FY2022: 45.7% 

- FY2023: 50.5% 

- FY2024: 56.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are CNY 5.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2025: revenue 5456317000; grossProfit 5456317000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688008.SHG: Montage Technology Co., Ltd., an integrated circuit (IC) design company, provides IC-based solutions for cloud computing and AI infrastructure in the People's Republic of China. The company provides components for memory modules, such as multiplexed rank registering clock driver, multiplexed rank data buffer, registering clock driver, data buffer, clock driver, SPD EEPROM with hub, temperature sensor, and power management IC, as well as server and client memory module products. It also offers DDR5 PMIC, SPD Hub, and TS; PCIe retimers; CXL Memory eXpander Controller, a Type 3 Compute Express Link DRAM memory controller; clock chips; and Jintide server platform. Montage Technology Co., Ltd. was founded in 2004 and is based in Shanghai, the People's Republic of China.

### Why customers stay

Margins ranged from 50.5% to 100% during 2023–25; it earns 49.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2023: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2024: grossProfit / revenue = 56.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); 10-year return on capital observations [[2016,0.19338677980277713],[2017,0.7027044929171761],[2018,0.2029339431854428],[2019,0.12733132843738038],[2020,0.6277234318375032],[2021,0.5163950045610776],[2022,0.5300890869932837],[2023,0.16339267809295624],[2024,0.47799808922046655],[2025,0.6331580206109046]]; median 0.4971965468907721. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 7.1% of cash earnings on expansion; earns 84.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2016: growth capex 0; upkeep 4612575.67; owner earnings 101050602.33. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2017: growth capex 5674480.210623346; upkeep 51960452.279376656; owner earnings 311106463.7206234. Growth capex / owner earnings = 0.01823967314198616.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2018: growth capex 0; upkeep 17894430.06; owner earnings 739140721.94. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2019: growth capex 0; upkeep 21570191.9; owner earnings 941509278.1. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2020: growth capex 10337794.447533727; upkeep 428992205.5524663; owner earnings 705360227.4475337. Growth capex / owner earnings = 0.014656049554910119.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2021: growth capex 105462808; upkeep 48004898; owner earnings 825209463.406. Growth capex / owner earnings = 0.12780125856132202.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2022: growth capex 188429037; upkeep 38430606; owner earnings 1297614348.186. Growth capex / owner earnings = 0.14521189386000113.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2023: growth capex 0; upkeep 423986776; owner earnings 115086002.25400001. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2024: growth capex 271308484; upkeep 107813417; owner earnings 1406019184.958. Growth capex / owner earnings = 0.1929621493807031.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); FY2025: growth capex 158015735.88; upkeep 107813000; owner earnings 2231697457.702. Growth capex / owner earnings = 0.07080517806509054.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); Incremental return on capital 0.8444393676833675, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); Dividend observations: [[2016,0],[2017,239830442],[2018,239830442.78],[2019,292311895],[2020,338944166],[2021,339309102],[2022,338935149],[2023,341402473],[2024,338193337.8],[2025,669996402.47]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688008.SHG SharesStats.PercentInsiders = 7.011000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 25.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:20.742Z); Ten-year compound average after fade. Initial solved rate 0.3584583852180182. Price 163; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2019-07: CNY 77.27 per share

- 2019-08: CNY 69.28 per share

- 2019-09: CNY 63.27 per share

- 2019-10: CNY 58.29 per share

- 2019-11: CNY 65.43 per share

- 2019-12: CNY 71.61 per share

- 2020-01: CNY 96.62 per share

- 2020-02: CNY 88.50 per share

- 2020-03: CNY 79.79 per share

- 2020-04: CNY 98.23 per share

- 2020-05: CNY 88.87 per share

- 2020-06: CNY 101.68 per share

- 2020-07: CNY 88.39 per share

- 2020-08: CNY 82.52 per share

- 2020-09: CNY 79.98 per share

- 2020-10: CNY 68.65 per share

- 2020-11: CNY 75.60 per share

- 2020-12: CNY 82.88 per share

- 2021-01: CNY 87.51 per share

- 2021-02: CNY 74.14 per share

- 2021-03: CNY 61.20 per share

- 2021-04: CNY 53.52 per share

- 2021-05: CNY 59.95 per share

- 2021-06: CNY 62.38 per share

- 2021-07: CNY 67.47 per share

- 2021-08: CNY 63.35 per share

- 2021-09: CNY 59.41 per share

- 2021-10: CNY 65.10 per share

- 2021-11: CNY 82.31 per share

- 2021-12: CNY 83.87 per share

- 2022-01: CNY 71.25 per share

- 2022-02: CNY 77.30 per share

- 2022-03: CNY 67.30 per share

- 2022-04: CNY 58.05 per share

- 2022-05: CNY 64.26 per share

- 2022-06: CNY 60.58 per share

- 2022-07: CNY 57.30 per share

- 2022-08: CNY 55.50 per share

- 2022-09: CNY 52.33 per share

- 2022-10: CNY 56.74 per share

- 2022-11: CNY 67.29 per share

- 2022-12: CNY 62.60 per share

- 2023-01: CNY 55.41 per share

- 2023-02: CNY 57.77 per share

- 2023-03: CNY 69.52 per share

- 2023-04: CNY 60.90 per share

- 2023-05: CNY 63.80 per share

- 2023-06: CNY 57.42 per share

- 2023-07: CNY 57.92 per share

- 2023-08: CNY 51.24 per share

- 2023-09: CNY 49.70 per share

- 2023-10: CNY 55.03 per share

- 2023-11: CNY 58.98 per share

- 2023-12: CNY 58.76 per share

- 2024-01: CNY 45.20 per share

- 2024-02: CNY 52.20 per share

- 2024-03: CNY 45.95 per share

- 2024-04: CNY 50.91 per share

- 2024-05: CNY 53.00 per share

- 2024-06: CNY 57.16 per share

- 2024-07: CNY 59.60 per share

- 2024-08: CNY 52.63 per share

- 2024-09: CNY 66.88 per share

- 2024-10: CNY 68.41 per share

- 2024-11: CNY 67.38 per share

- 2024-12: CNY 67.90 per share

- 2025-01: CNY 68.04 per share

- 2025-02: CNY 77.73 per share

- 2025-03: CNY 78.28 per share

- 2025-04: CNY 76.82 per share

- 2025-05: CNY 76.32 per share

- 2025-06: CNY 82.00 per share

- 2025-07: CNY 85.02 per share

- 2025-08: CNY 122.90 per share

- 2025-09: CNY 154.80 per share

- 2025-10: CNY 136.30 per share

- 2025-11: CNY 118.50 per share

- 2025-12: CNY 117.80 per share

- 2026-01: CNY 181.85 per share

- 2026-02: CNY 163.55 per share

- 2026-03: CNY 125.28 per share

- 2026-04: CNY 173.30 per share

- 2026-05: CNY 253.00 per share

- 2026-06: CNY 309.90 per share

- 2026-07: CNY 204.90 per share

- 2026-08: CNY 204.95 per share

- 2026-09: CNY 202.31 per share

- 2026-10: CNY 184.80 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 12.39 per share, central CNY 13.33 per share, high CNY 14.58 per share

- FY2021: low CNY 15.62 per share, central CNY 16.94 per share, high CNY 18.71 per share

- FY2022: low CNY 20.30 per share, central CNY 22.19 per share, high CNY 24.71 per share

- FY2023: low CNY 14.40 per share, central CNY 15.48 per share, high CNY 16.91 per share

- FY2024: low CNY 20.02 per share, central CNY 21.73 per share, high CNY 24.02 per share

- FY2025: low CNY 26.66 per share, central CNY 29.21 per share, high CNY 32.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:02.593Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.