CXMT IPO Valuation Analysis

• My base case valuation of CXMT is market cap of 835.8 billion RMB (P/E of 5.9x using my base case estimated net profit of 140.9 billion RMB in 2026).

• The target P/E of 5.9x is based on a 30% discount to the comps’ P/E valuation in 2026.

• If CXMT achieves market cap of about 836 billion RMB (US$123 billion), this would represent about 12% of SK Hynix’s market cap of 1,558 trillion KRW (US$1.03 trillion).