Naura Technology (002371 CH) Summary
Core Content
Naura Technology (002371 CH) is a fully-owned subsidiary of China Merchants Bank and is recognized as China's largest platform-based semiconductor equipment provider. The company has demonstrated strong growth in revenue and net profit for the first half of 2026, with revenue reaching RMB20.16bn (+24.9% YoY) and net profit at RMB3.37bn (+5.1%). However, both figures were slightly below the Bloomberg consensus. The earnings growth was slower than revenue growth due to increased R&D and selling expenses, as well as pressure on gross margin (GPM), which dropped 1.4ppts QoQ to 39.3% in 2Q26. Management attributed the GPM pressure to higher component iteration and upgrade costs during new-product validation and discounts to selected customers.
Operating cash flow (OCF) for 1H26 reached RMB3.77bn, supported by stronger collections. The company is well positioned for domestic substitution in the semiconductor industry, and the WFE sector remains a top thematic pick. The analyst has revised down the FY26/27E sales forecasts by -2.5%/-2.3% and GPM by -0.4/-1.1ppts. The target price (TP) is adjusted to RMB814, based on a 52x 2027E P/E, which is 1-SD above its historical average.
Main Points
- Revenue Growth: Naura reported strong revenue growth in 1H26, driven by market share gains in various semiconductor equipment segments.
- Gross Margin Pressure: GPM declined in 2Q26, primarily due to higher component iteration and upgrade costs, and discounts.
- Product Mix Upgrade: The company is focusing on higher-value applications such as AI computing, data centers, and high-end industrial markets.
- Investment in R&D and Selling: R&D expenses increased by 28.9% YoY to RMB2.68bn, and selling expenses rose by 63.5% YoY to RMB761mn, reflecting strategic investments to expand product exposure.
- Order Indicators: Inventory and contract liabilities rose significantly, indicating a strong production pipeline and increased customer prepayments.
- Financial Outlook: Revenue is expected to grow steadily over the next few years, with a forecasted CAGR of 24.8% for FY26E to FY28E. Gross margin is expected to recover, with projections of 43.1% in FY28E.
- Earnings Forecast: Net profit is projected to grow significantly, reaching RMB15,926mn in FY28E, with an increase in EPS from RMB10.34 in FY26E to RMB21.95 in FY28E.
- Valuation: The target price is RMB814, based on a 52x 2027E P/E, indicating a positive outlook despite current margin pressures.
- Share Performance: The share price has shown positive growth over the past six months, with a 41.2% increase, but it has underperformed relative to the market in the last three months.
Key Financial Metrics
| Metric |
FY24A |
FY25A |
FY26E |
FY27E |
FY28E |
| Revenue (RMB mn) |
30,075 |
39,353 |
50,677 |
64,217 |
80,124 |
| YoY growth (%) |
36.2 |
30.9 |
28.8 |
26.7 |
24.8 |
| Gross margin (%) |
42.9 |
40.1 |
39.8 |
41.7 |
43.1 |
| Net profit (RMB mn) |
5,622 |
5,522 |
7,500 |
11,354 |
15,926 |
| YoY growth (%) |
35.8 |
51.4 |
40.3 |
|
|
| EPS (Reported) (RMB) |
10.34 |
15.65 |
21.95 |
|
|
| P/E (x) |
67.8 |
44.8 |
31.9 |
|
|
Financial Highlights
- Growth Drivers: Strong revenue growth from electronic process equipment, including semiconductor and vacuum/new-energy equipment.
- Product Coverage: Kingsemi's consolidation broadened the company's product range.
- Cash Flow: Improved OCF in 1H26 indicates better cash conversion.
- Investment in R&D: Continued investment in R&D supports product penetration into advanced markets.
- Margin Recovery: Expected recovery in GPM over the next few years, with a projected 43.1% in FY28E.
- Operating Leverage: Despite higher expenses, the company is expected to see improved operating leverage in the future.
Key Risks
- Slower Product Validation: Potential delays in the validation of new products.
- Price Competition: Intensifying price competition may impact profitability.
- GPM Pressure: Continued pressure on gross margins.
- Weaker Semiconductor Capex: Declining capital expenditures in the semiconductor sector may affect revenue growth.
Analyst Recommendations
- Rating: BUY
- Target Price: RMB814
- Current Price: RMB700.40
- Upside/Downside: 16.2%
Shareholding Structure
| Shareholder |
Percentage |
| Beijing Sevenstar Huadian Technology Gro |
33.2% |
| Beijing Electronics Holding |
7.3% |
Stock Data
| Metric |
Value (RMB) |
| Market Cap |
508,280.3 |
| Avg 3 mths t/o |
9,029.9 |
| 52w High/Low |
935.36/350.95 |
| Total Issued Shares (mn) |
725.7 |
CMBIGM Ratings
- BUY: Potential return of over 15% over next 12 months
- HOLD: Potential return of +15% to -10% over next 12 months
- SELL: Potential loss of over 10% over next 12 months
- NOT RATED: Not rated by CMBIGM
- OUTPERFORM: Industry expected to outperform the relevant broad market benchmark
- MARKET-PERFORM: Industry expected to perform in-line with the relevant broad market benchmark
- UNDERPERFORM: Industry expected to underperform the relevant broad market benchmark
Financial Statements Summary
Income Statement
| Metric |
2023A |
2024A |
2025A |
2026E |
2027E |
2028E |
| Revenue (RMB mn) |
22,079 |
30,075 |
39,353 |
50,677 |
64,217 |
80,124 |
| Gross profit (RMB mn) |
9,075 |
12,913 |
15,782 |
20,155 |
26,751 |
34,573 |
| Net profit (RMB mn) |
3,899 |
5,622 |
5,522 |
7,500 |
11,354 |
15,926 |
Balance Sheet
| Metric |
2023A |
2024A |
2025A |
2026E |
2027E |
2028E |
| Total assets (RMB mn) |
53,625 |
66,366 |
89,801 |
102,530 |
120,090 |
147,239 |
| Total liabilities (RMB mn) |
28,800 |
33,826 |
45,873 |
51,904 |
59,256 |
72,151 |
| Total equity and liabilities (RMB mn) |
53,625 |
66,366 |
89,801 |
102,530 |
120,090 |
147,239 |
Cash Flow
| Metric |
2023A |
2024A |
2025A |
2026E |
2027E |
2028E |
| Net cash from operations (RMB mn) |
2,365 |
1,572 |
2,133 |
5,074 |
6,600 |
7,616 |
| Net cash from investing (RMB mn) |
(2,058) |
(2,248) |
(3,929) |
(3,031) |
(3,821) |
(4,665) |
| Net cash from financing (RMB mn) |
1,647 |
729 |
6,607 |
(2,591) |
1,405 |
4,097 |
| Cash at the end of the year (RMB mn) |
12,229 |
12,385 |
17,183 |
16,641 |
20,830 |
27,884 |
Financial Growth
| Metric |
2023A |
2024A |
2025A |
2026E |
2027E |
2028E |
| Revenue growth (%) |
50.3 |
36.2 |
30.9 |
28.8 |
26.7 |
24.8 |
| Gross profit growth (%) |
40.9 |
42.3 |
22.2 |
27.7 |
32.7 |
29.2 |
| Net profit growth (%) |
65.7 |
44.2 |
(1.8) |
35.8 |
51.4 |
40.3 |
Profitability
| Metric |
2023A |
2024A |
2025A |
2026E |
2027E |
2028E |
| Gross margin (%) |
41.1 |
42.9 |
40.1 |
39.8 |
41.7 |
43.1 |
| Operating margin (%) |
20.1 |
21.8 |
14.7 |
15.9 |
19.0 |
21.4 |
| Return on equity (ROE) (%) |
17.7 |
20.3 |
16.1 |
18.2 |
22.7 |
25.4 |
Analyst Certification
The analyst certifies that the views expressed accurately reflect his or her personal views about the subject securities or issuer, and that no part of his or her compensation is directly or indirectly related to the specific views expressed in this report.
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- Past performance has no indication of future performance.
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