Morgan Stanley included Changxin Technology in the scope of research for the first time and gave it an “gain” rating. The target price is 88 yuan, which corresponds to the estimated PE in 2027, which is about 18.5 times that of PE, which is about 18.5 times higher. There is a clear premium compared to PE which is about 4.4 times that of its global peers. The bank believes that this valuation premium is reasonable because Changxin Storage has stronger growth prospects, supported by continued capacity expansion and growing demand from China's AI infrastructure ecosystem. Changxin Storage benefits from strong AI and server demand in China, driving products such as HBM and DDR5. Currently, global DRAM supply continues to be tight, supporting prices, and on the other hand, it is also encouraging international brands to accelerate the adoption of Changxin Storage's DRAM.

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