Can Changxin become the king of A-shares? Last night, Changxin announced its IPO pricing: an issue price of 8.66 yuan/share, with 6.688 billion shares issued, accounting for about 10.00% of the total share capital post-issuance. Additionally, CICC has been granted an over-allotment option of up to 15.00%. Without considering the over-allotment, the company's pre-listing total market value, calculated at the issue price, is approximately 579.2 billion yuan. If the company's market value reaches 2 trillion yuan, the stock price would need to rise to nearly 30 yuan. Changxin's estimated net profit attributable to shareholders for the first half of this year is between 50 to 57 billion yuan. If we estimate the full year by doubling this figure, a 2 trillion yuan market value corresponds to a dynamic P/E ratio of 17.5 to 20 times. Looking at it this way, it doesn’t seem too expensive? For Changxin to claim the top spot in A-share market value, it would need to exceed 2.68 trillion yuan, corresponding to a P/E ratio of around 25 times. Currently, the average P/E ratio on the STAR Market is 104 times, so a P/E ratio of around 25 times isn’t considered high. Of course, compared to the valuations of Samsung and SK Hynix, it’s definitely higher. Considering that the initial circulating shares will only be the IPO-issued portion, and given that it’s the cornerstone of the semiconductor AI sector in A-shares, it feels like the 500+ billion yuan market value calculated based on the IPO price is far from enough to hold it down. This post is sponsored by @bitget_zh: 'Bitget - Trade U.S. stocks with lightning-fast entry and seamless transactions.'