CXMT Corporation (688825 CH): Growing Chinese DRAM Leader Reshapes Industry Landscape

We initiate CXMT at BUY with a 12-month target price of RMB75.4, based on 14.5x 2027E PE. The company is China's largest DRAM IDM by revenue, with advanced technology and a broad product portfolio. It has ramped four generations of process platforms into mass production, with products spanning mainstream nodes such as DDR5 and LPDDR5/5X, widely used in servers, smartphones, PCs, and intelligent vehicles. The company ranked fourth globally and first in China in terms of DRAM sales in 4Q25, according to Omdia. As AI is driving rapid growth in DRAM and HBM demand and effective capacity additions from incumbent suppliers face time lags, we expect the memory upcycle to persist. Coupled with rising demand for supply chain self-sufficiency, CXMT, as China's leading DRAM player, is well positioned to leverage its iterating process platforms and gradually ramping capacity to accelerate penetration into key domestic customers and keep gaining market share, in our view. We forecast revenue of RMB