Nomura initiated coverage of ChangXin Memory on its IPO day with a buy rating
and a PT of 116 yuan. The bank said global memory-chip supply is unlikely to
ease as quickly as consensus expects, which should accelerate ChangXin’s
market-share gains. Nomura said capacity expansion, process upgrades and rising
ASPs will drive rapid revenue and net income attributable to parent-company
shareholders. The 116 yuan PT implies roughly 12.4x upside to the 8.66 yuan
issue price; based on the pre-overallotment share count of 66.881 bln shares,
that values ChangXin at about 7.77 trillion yuan.
