Initial Thoughts on the Changxin Memory Technologies (CXMT) IPO
Changxin Memory Technologies (CXMT) is getting ready to complete its IPO on China’s Star market in 2H 2026.
In May 2026, CXMT submitted its updated initial public offering (IPO) prospectus to the Shanghai Stock Exchange’s STAR Market.
CXMT is seeking to raise 29.5 billion yuan ($4.3 billion) in this IPO in what is poised to be one of the largest IPOs in China in 2026.
CXMT is China’s largest and most important company in the DRAM memory chips. CXMT also develops . Although smaller in scale than the top three global players (Samsung Electronics (005930 KS), SK Hynix (000660 KS), and Micron Technology (MU US)), CXMT is becoming a legitimate, serious competitor in the global DRAM memory chip sector.
Major investors - Major investors in CXMT include the National Integrated Circuit Industry Investment Fund II, state-owned asset managers from Anhui, Beijing, and Guangdong, as well as strategic investors including Alibaba Cloud, chip design firm GigaDevice, and financial investors such as CMB, ABC, and CCB.
Revenue guidance - CXMT has provided a revenue guidance of 110 billion yuan to 120 billion yuan ($17.62 billion) in 1H 2026. To put this in perspective, SK Hynix generated revenue of 52.6 trillion won in 1Q 2026. Consensus estimates SK Hynix to generate revenue of 81.4 trillion won in 2Q 2026. So the combined revenue estimate in 1H 2026 for SK Hynix is 134 trillion won ($90.5 billion).
Net profit guidance - CXMT has provided a net profit guidance of 57 billion yuan ($8.37 billion) (attributable to controlling shareholders) in 1H 2026. SK Hynix had net profit of 40.35 trillion won in 1Q 2026. Consensus estimates SK Hynix to generate net profit of 49.6 trillion won in 2Q 2026. So the combined net profit estimate for SK Hynix in 1H 2026 is 89.95 trillion won ($60.8 billion).
SK Hynix vs CXMT (Revenue and net profit comparison) - Estimated revenue of CXMT in 1H 2026 is about 19% of SK Hynix, which currently has a market cap of 1,224 trillion won ($827 billion). Estimated net profit of CXMT in 1H 2026 is about 13.8% of SK Hynix.
CXMT 1Q 2026 Results - CXMT had revenue of 50.8 billion yuan (up 719% YoY) and net profit of 25 billion yuan (attributable to controlling shareholders) in 1Q 2026 (versus net loss of 1.6 billion yuan in 1Q 2025).
Surging DRAM prices - CXMT has been benefiting from surging DRAM prices in the past year. According to TrendForce, DRAM contract prices jumped more than 75% year-on-year in 4Q 2025 and rose by up to 98% in 1Q 2026. Gartner forecasted that DRAM prices would surge by 125% and NAND prices by 234% on an annual basis in 2026.
Market share of DRAM globally - According to market research firm Omdia, CXMT held a 7.67% share of the global DRAM market in 4Q 2025. This ranks it first in China and fourth globally. The combined market share of the three major players (Samsung Electronics, SK Hynix, and Micron exceeds 90%).
