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-overallotm

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.