NAURA(SZ:002371) Huachuang Securities·2024-05-01 06:02Investment Rating - Strong Buy (Maintained) with a target price of 404.5 RMB [1] Core Views - The company's performance continues to grow at a high rate, with significant profit elasticity driven by economies of scale [2] - Revenue for 2023 reached 22.079 billion RMB, a year-on-year increase of 50.32%, with a gross margin of 41.10%, down 2.73 percentage points year-on-year [2] - Net profit attributable to the parent company in 2023 was 3.899 billion RMB, up 65.73% year-on-year, while net profit after deducting non-recurring gains and losses was 3.581 billion RMB, up 70.05% year-on-year [2] - In Q1 2024, revenue was 5.859 billion RMB, up 51.36% year-on-year, with a gross margin of 43.40%, up 2.22 percentage points year-on-year [2] - Net profit attributable to the parent company in Q1 2024 was 1.127 billion RMB, up 90.40% year-on-year, while net profit after deducting non-recurring gains and losses was 1.072 billion RMB, up 100.91% year-on-year [2] Business Performance - The company's semiconductor equipment business achieved revenue of 19.611 billion RMB in 2023, up 62.29% year-on-year, with a gross margin of 38.04%, up 0.34 percentage points year-on-year [2] - Revenue from etching equipment was nearly 6 billion RMB, while revenue from thin film deposition equipment exceeded 6 billion RMB, and revenue from vertical furnaces and cleaning equipment exceeded 3 billion RMB [2] - The electronic components business generated revenue of 2.433 billion RMB, down 5.51% year-on-year, with a gross margin of 65.65%, down 6.88 percentage points year-on-year [2] Market and Industry Outlook - The recovery in demand and innovation in end applications, such as AI, are expected to drive wafer fab expansion, benefiting platform-based equipment companies like the report company [2] - Changes in international trade dynamics are accelerating the localization of equipment, with leading domestic manufacturers expected to significantly increase their market share [2] - The company's ICP etching equipment performs excellently, and its CCP equipment R&D and introduction are progressing smoothly, with 12-inch CCP edge etching machines already being verified in multiple production lines [2] - The company's copper interconnect thin film deposition equipment and over 20 other products have become preferred choices for mainstream domestic chip manufacturers [2] Financial Forecasts - Revenue for 2024E is projected to be 30.573 billion RMB, up 38.5% year-on-year, with net profit attributable to the parent company expected to reach 5.805 billion RMB, up 48.9% year-on-year [3] - Revenue for 2025E is projected to be 40.139 billion RMB, up 31.3% year-on-year, with net profit attributable to the parent company expected to reach 7.626 billion RMB, up 31.4% year-on-year [3] - Revenue for 2026E is projected to be 49.015 billion RMB, up 22.1% year-on-year, with net profit attributable to the parent company expected to reach 9.459 billion RMB, up 24.0% year-on-year [3] - EPS for 2024E, 2025E, and 2026E are forecasted to be 10.93 RMB, 14.36 RMB, and 17.82 RMB, respectively [3] Valuation - The company's 2024E PE ratio is 29x, with a target price of 404.5 RMB based on a 37x PE ratio for 2024 [2][3]