\u3000\u3 China Vanke Co.Ltd(000002) 371 Naura Technology Group Co.Ltd(002371) )
On April 27, Naura Technology Group Co.Ltd(002371) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 9.683 billion yuan, a year-on-year increase of 59.90%, and a net profit attributable to the parent company of 1.077 billion yuan, a year-on-year increase of 100.66%. In the first quarter of 2022, the company achieved a revenue of RMB 2.136 billion, a year-on-year increase of 50.04%, and a net profit attributable to the parent company of RMB 206 million, a year-on-year increase of 183.18%.
Revenue increased sharply in 2021, and the gross profit margin in the first quarter increased significantly. In 2021, the company achieved a high increase in revenue, with a total revenue of 9.683 billion yuan, including: 1) the subsidiary Naura Technology Group Co.Ltd(002371) microelectronics, mainly engaged in semiconductor equipment, with a revenue of 7.121 billion yuan, a year-on-year increase of 71%; 2) The subsidiary vacuum equipment, with a year-on-year increase of 1.68 billion yuan and a year-on-year increase of 2.8%; 3) Seven Star Huachuang, a subsidiary, mainly engaged in electronic components, with a revenue of 1.715 billion yuan, a year-on-year increase of 47%. Thanks to the increased willingness to invest in downstream integrated circuit production lines, the company’s equipment categories are constantly enriched, and the high growth of semiconductor equipment business has brought the largest revenue increment to the company. On the profit side, the company’s annual comprehensive gross profit margin reached 39.41%, a year-on-year increase of 2.72 PCT, of which the equipment gross profit margin was 33.00%, a year-on-year increase of 3.56 PCT, and the component business gross profit margin was 68.90%, a year-on-year increase of 2.75 PCT.
In the first quarter of 2021, the company’s profitability continued to improve, with a comprehensive gross profit margin of 44.64%, up 7.91pct month on month. Meanwhile, in the first quarter, the company’s inventory amounted to 9.712 billion yuan, with a month on month increase of 1.677 billion yuan, with a considerable growth. It can be expected that the revenue growth momentum in the later period is sufficient.
The equipment category is developing smoothly and the leading position in the industry is stable. As the leader of semiconductor equipment with the most complete product line in China, the company has realized mass production of etching machine, PVD, CVD, oxidation / diffusion furnace, annealing furnace, cleaning machine and other products in the field of integrated circuits, forming a cross domain product platform of semiconductor equipment. In 2021, the company achieved good results in market development again, and many new products such as etching machine, PVD, CVD, ALD, vertical furnace and cleaning machine entered the mainstream production line in China. Bulk purchase of company equipment for mainstream chip production lines in logic field; A variety of new process equipment in the storage field enter the production line for verification; In the field of advanced packaging, multi product series layout has been realized, and cooperative relations have been established with major packaging plants in China, with a stable leading position in the industry.
Localization and downstream demand continued to grow steadily. The prosperity of the global semiconductor industry continued in 2022. IC insights expects the capital expenditure of the semiconductor industry to increase by 24% in 2022, reaching a record high of US $190.4 billion, achieving double-digit growth for three consecutive years. On the Chinese side, all wafer factories also maintain a strong willingness to expand production. According to the statistics of public bidding data, in March 2022, Huahong Wuxi, Shanghai Huali, Jita, China Resources Microelectronics Limited(688396) , Fujian Jinhua successively issued the bidding for 171 wafer manufacturing equipment, and Hefei Changxin phase II is also in the civil bidding. At the same time, many local equipment manufacturers are now on the list of suppliers, Naura Technology Group Co.Ltd(002371) with film, etching and furnace tubes leading the list of procurement volume.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 14.076/18.512/24.152 billion yuan respectively, and the corresponding current price PS is 9 / 7 / 5 times respectively. Considering the company’s market position as the leader of China’s semiconductor equipment, the broad product line is expected to make it fully enjoy the dividends of downstream expansion and localization, and maintain the “recommended” rating.
Risk warning: product verification is not as expected; Cyclical fluctuations in downstream industries; Market competition intensifies.
