\u3000\u3 China Vanke Co.Ltd(000002) 371 Naura Technology Group Co.Ltd(002371) )
Naura Technology Group Co.Ltd(002371) released the annual report for 2021 and the report for the first quarter of 2022: in 2021, the operating revenue was RMB 9.683 billion (year-on-year + 59.90%), the net profit attributable to the parent company was RMB 1.077 billion (year-on-year + 100.66%), and the net profit deducted from non attributable to the parent company was RMB 807 million (year-on-year + 309.45%). In the first quarter of 2022, the operating revenue was 2.136 billion yuan (year-on-year + 50.04%), the net profit attributable to the parent company was 206 million yuan (year-on-year + 183.18%), and the net profit deducted from non attributable to the parent company was 155 million yuan (year-on-year + 382.23%).
Key investment points:
The performance of 2021 and 2022q1 met expectations, and the leader of semiconductor equipment continued to grow at a high speed. In 2021q4, the company achieved an operating revenue of 3.510 billion yuan, a year-on-year increase of 58.08%, and a net profit attributable to the parent company of 419 million yuan, a year-on-year increase of 99.25%. Thanks to the continued strong demand in the downstream market of electronic equipment and electronic components business, the company’s electronic process equipment achieved an operating revenue of 7.949 billion yuan in 2021, an increase of 63.24% year-on-year, and electronic components achieved an operating revenue of 1.715 billion yuan, an increase of 47.22% year-on-year. The company’s expenses (excluding R & D) are well controlled, with a sales expense rate of 5.29% (-0.55pct), an administrative expense rate of 12.32% (-1.74pct) and a financial expense rate of – 0.48% (+ 0.23pct). Profitability continued to improve. In 2021, the gross profit margin of the company’s electronic process equipment was 33.00% (+ 3.56 PCT), and the gross profit margin of electronic components was 68.90% (+ 2.75 PCT). In addition, the company’s 2022q1 contract liabilities were 5.090 billion, a slight increase over the beginning of the year, indicating a good order situation.
R & D investment continues to increase, fixed growth projects are progressing well, and the growth momentum in the future is strong. In terms of R & D, with the continuous expansion of downstream market demand, the company adheres to the research and development of new products to enrich the product line. In 2021, the R & D investment was 2.892 billion yuan (year-on-year + 79.85%), of which the expensed part was 1.297 billion yuan (year-on-year + 93.58%), and the R & D investment accounted for 29.87% (+ 3.31pct) of operating revenue. In 2021, the number of R & D personnel of the company reached 2044, an increase of 44.45% over 2020. Integrated circuits and pan semiconductor equipment have obtained a number of research results and successfully expanded the market, and a number of new products have been put into operation. In 2021, the company raised RMB 8.5 billion from non-public offering and successfully launched the “production expansion project of semiconductor equipment industrialization base (phase IV)”, “high-end semiconductor equipment R & D project” and “production expansion project of high-precision electronic components industrialization base (phase III)”. The three major projects were carried out smoothly as planned. The implementation of the project will improve the production capacity and competitiveness of the company’s semiconductor equipment products. Over the years, the company has deeply cultivated the core technology of semiconductor equipment, formed a diversified technical system and obtained a number of patent achievements. The company’s R & D, technology and product competitiveness have been continuously improved, which will lead the tide of localization of semiconductor equipment and continue to grow.
As a leading enterprise of China’s semiconductor equipment, the profit prediction and investment rating company has a deep layout of semiconductor equipment, vacuum equipment, new energy lithium battery equipment and precision components. The product system is perfect and the comprehensive competitiveness is strong. At present, the urgency and necessity of independent control of semiconductor equipment are prominent. The domestic substitution process is being comprehensively promoted, and the company is expected to lead the tide of localization of semiconductor equipment to continue to rise. Considering the expansion of China’s wafer factories and the increase in demand for domestic equipment, we raised our profit forecast. It is expected that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.660/22.503018 billion respectively, the corresponding EPS will be RMB 3.16/4.28/5.74/share respectively, the corresponding current PE valuation will be 75 / 56 / 41 times respectively, and the rating will be raised to “buy” rating.
Risk warning: downstream demand is less than expected risk; Risk that the R & D Progress of new products is less than expected; Supply chain Instability Risk; Upstream cost escalation risk; Exchange rate fluctuation risk.
