NAURA(SZ:002371) CSC SECURITIES (HK) LTD·2025-04-09 07:31Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [6][9]. Core Insights - The company has experienced significant revenue growth, with a year-on-year increase of 23% to 53% in Q1 2025, and net profit growth of 29% to 59% [6]. - The ongoing U.S.-China technology and trade disputes are accelerating the domestic substitution process in the semiconductor equipment and manufacturing sectors, positioning the company as a key player in China's semiconductor industry [6][9]. - The company's earnings per share (EPS) is projected to grow significantly, with estimates of RMB 13.24 for 2025 and RMB 17.87 for 2026, reflecting a strong growth trajectory [9]. Summary by Sections Company Overview - The company operates in the electronics industry, with a current stock price of RMB 431.01 as of April 8, 2025, and a market capitalization of RMB 229.9 billion [2]. - Major shareholders include Beijing Qixing Huadian Technology Group Co., Ltd., holding 33.43% of shares [2]. Financial Performance - The company reported a net profit of RMB 2.353 billion in 2022, with projections of RMB 7.069 billion for 2025, indicating a compound annual growth rate (CAGR) of 26.92% from 2023 to 2025 [8][9]. - Revenue is expected to reach RMB 37.557 billion in 2025, up from RMB 29.829 billion in 2024, reflecting a year-on-year growth of 35% [9]. Market Position - The company holds a strong market position in semiconductor equipment, with a product mix comprising 75% electronic process equipment and 25% electronic components [2]. - The stock is currently trading at a price-to-earnings (P/E) ratio of 33 times for 2025 and 24 times for 2026, suggesting a favorable valuation relative to its growth prospects [9].