NAURA(SZ:002371) Hua Er Jie Jian Wen·2025-04-25 13:40Core Viewpoint - The company has demonstrated strong financial performance in Q1 2025, with revenue and net profit both achieving nearly 40% growth, solidifying its leading position in the domestic semiconductor equipment sector. However, a significant decline in operating cash flow raises concerns about the sustainability of this growth [1][3]. Financial Performance - Q1 revenue reached 8.206 billion yuan, a year-on-year increase of 37.9% [2][3]. - Net profit attributable to shareholders was 1.581 billion yuan, up 38.8% year-on-year [2][3]. - Deducting non-recurring gains and losses, net profit was 1.570 billion yuan, reflecting a 44.75% increase compared to the previous year [2][3]. - Basic earnings per share were 2.9613 yuan, a 37.89% increase from 2.1245 yuan in the same period last year [2][4]. Growth Drivers - The strong growth is attributed to continuous breakthroughs in integrated circuit equipment, particularly in products like capacitive coupling plasma etching equipment (CCP), atomic layer deposition equipment (ALD), and high-end single-wafer cleaning machines [4][7]. - The company has achieved significant scale effects, leading to a steady decline in cost expense ratios, which is a key reason for net profit growth outpacing revenue growth [4]. Cash Flow and Inventory Concerns - Operating cash flow turned negative at -1.729 billion yuan, a drastic decline of 834.01% compared to 260 million yuan in the same period last year [5][7]. - The decline in cash flow is primarily due to increased procurement expenditures to meet order demands [5][7]. - The company's inventory reached 25.211 billion yuan, a 6.67% increase from the previous year, accounting for 36.9% of total assets, which is significantly higher than the industry average [5][7]. Investment in R&D - R&D expenses amounted to 1.026 billion yuan, a year-on-year increase of 40.89%, representing 12.5% of revenue, indicating a strong commitment to ongoing product development [7]. - The balance of development expenditures at the end of the period was 6.368 billion yuan, reflecting continued investment in future product R&D [7]. Asset Growth - Total assets increased to 68.242 billion yuan, a growth of 2.83% from the beginning of the year [7]. - Shareholders' equity attributable to the parent company rose to 32.667 billion yuan, up 4.92% from the start of the year [7].