Montage (688008.SS): RCD05 enters mass production; New interconnect products to support growth

We remain positive on Montage Technology, supported by (1) AI-driven growth in server memory capacity and interface-chip demand, (2) continued DDR5 sub-generation migration supporting product mix upgrade, and (3) new interconnect products expanding the company's value content in server platforms. In September, Montage announced the mass production of its RCD05 for server applications and CK01P for client applications, extending its coverage of higher-speed DDR5 memory modules. We expect higher-generation DDR5 interface chips and the ramp-up of MRCD/MDB and PCIe Retimer products to support growth ahead. Maintain Buy. Montage's fifth-generation DDR5 RCD05 has entered mass production, supporting data rates of up to 8,000 MT/s, compared with 7,200 MT/s for RCD04, targeting high-performance RDIMMs used in data centers and AI servers. The company has also commenced mass production of CK01P, which supports data rates of up to 9,200 MT/s for higher-speed DDR5 client memory modules. Compared wi