NAURA(SZ:002371)2024-06-26 13:31Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The establishment of the National Integrated Circuit Industry Investment Fund Phase III is expected to significantly boost domestic advanced process capacity expansion, creating substantial opportunities for domestic equipment replacement [4]. - The company, North Huachuang, is well-positioned to benefit from the increasing demand for advanced process equipment due to its comprehensive product offerings in the semiconductor equipment sector [5]. - The company's stock incentive plans aim to strengthen its technological and talent barriers, enhancing its competitive edge in the market [5]. - The advanced process is anticipated to drive an increase in product prices, coupled with scale effects that are likely to enhance profitability [5]. Financial Summary - For 2024 to 2026, the company is projected to achieve revenues of 30.79 billion, 39.98 billion, and 50.32 billion respectively, with year-on-year growth rates of 39.4%, 29.9%, and 25.9% [6]. - The net profit attributable to the parent company is expected to reach 5.70 billion, 7.71 billion, and 10.12 billion for the same period, with corresponding growth rates of 46.1%, 35.3%, and 31.3% [6]. - The company's dynamic PE ratios are projected to be 29, 22, and 17 for the years 2024, 2025, and 2026, respectively, indicating a favorable valuation compared to international peers [6].