NAURA(SZ:002371) Tai Ping Yang·2024-08-19 02:01Investment Rating - The report maintains a "Buy" rating for the company, Northern Huachuang (002371) [1][9]. Core Views - The company has exceeded expectations in its mid-year performance forecast for 2024, with projected revenue between 11.41 billion and 13.14 billion yuan, representing a year-on-year increase of 35.4% to 55.93%. The expected net profit attributable to shareholders is between 2.57 billion and 2.96 billion yuan, reflecting a year-on-year growth of 42.84% to 64.51% [4]. - The company's growth is attributed to its focus on core business profitability and the realization of scale effects, which have led to improved operational efficiency and a stable decline in cost ratios [4]. - The company has a strong order book, with over 30 billion yuan in new orders signed in 2023, ensuring robust growth prospects for 2024 [4]. Summary by Relevant Sections Financial Performance - For H1 2024, the company expects revenue of 11.41 to 13.14 billion yuan, a growth of 35.4% to 55.93% year-on-year, and a net profit of 2.57 to 2.96 billion yuan, an increase of 42.84% to 64.51% [4]. - The company is projected to achieve revenues of 30.07 billion, 39.20 billion, and 49.74 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 5.73 billion, 7.64 billion, and 10.17 billion yuan [5][6]. Market Position and Competitive Advantage - The company is positioned as a leading platform in the semiconductor equipment sector, benefiting from a comprehensive product development system and high coverage of semiconductor production processes [5]. - The company’s product offerings in the integrated circuit field include etching, thin film deposition, cleaning, and thermal processing, which enhance its competitive edge and ensure collaborative R&D across various processes [4]. Future Outlook - The company is expected to continue benefiting from the semiconductor industry's upward cycle and the domestic substitution process, with anticipated revenue growth rates of 36.19%, 30.35%, and 26.89% for the years 2024 to 2026 [6].