NAURA(SZ:002371) Huaan Securities·2024-10-08 00:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1]. Core Viewpoints - The company is a leading domestic semiconductor equipment manufacturer with significant platform advantages. It has a strong historical background and has been responsible for several major national projects in the semiconductor field [4][5]. - The company is expected to benefit from the increasing capital expenditure in the semiconductor industry driven by domestic wafer manufacturing localization, with projections indicating that by 2026, China's 12-inch wafer capacity will account for 25% of the global total, making it the largest in the world [4][29]. - The company has maintained high R&D investment levels, which have allowed it to achieve product breakthroughs and maintain competitiveness against international peers [5][21]. Summary by Sections Company Overview - The company, North Huachuang, was formed through the merger of Qixing Electronics and Beifang Microelectronics in 2016. It has a rich history in semiconductor equipment development dating back to the 1960s [4][12]. - It is a state-owned enterprise under the Beijing State-owned Assets Supervision and Administration Commission, with significant shareholding from national funds [4][14]. Market Position and Growth - The company has seen a compound annual growth rate (CAGR) of over 50% in revenue over the past three years, driven by domestic substitution trends and increasing orders due to U.S. sanctions [21][22]. - In 2023, the company signed new orders exceeding 30 billion yuan, reflecting strong demand in the semiconductor equipment market [22]. Financial Projections - The projected net profits for the company from 2024 to 2026 are 57 billion yuan, 79 billion yuan, and 113 billion yuan, respectively. The corresponding earnings per share (EPS) are expected to be 11 yuan, 15 yuan, and 21 yuan [5][6]. - The company's revenue is expected to grow from 22,079 million yuan in 2023 to 52,040 million yuan by 2026, with a steady increase in gross margin from 41.1% to 44.0% over the same period [6][19]. Product Lines and R&D - The company’s main products include etching and thin film deposition equipment, which together account for approximately 70% of its semiconductor equipment revenue. The company has launched several new products, including the 12-inch capacitive coupling plasma etching machine [19][21]. - R&D expenses have increased significantly, from 4 billion yuan in 2018 to 25 billion yuan in 2023, with a consistent R&D expense ratio above 10% [23][24]. Industry Context - The semiconductor equipment market in China is projected to continue growing, with the country becoming the largest market for semiconductor equipment globally. The government’s support and investment in local manufacturing are key drivers of this growth [27][28].