NAURA(002371)2025-03-13 06:58Summary of NAURA Technology (002371.SZ) Conference Call Company and Industry - Company: NAURA Technology (002371.SZ) - Industry: Semiconductor Equipment Manufacturing Key Points and Arguments 1. Acquisition of Kingsemi Shares: NAURA announced the purchase of 9.5% shares of Kingsemi (688037.SS) at Rmb88.48 per share, matching the closing price before trading was halted. Additionally, NAURA intends to acquire another 8.4% from Shenyang Zhongke Tiansheng Automation Technology Co. through the open market. This indicates NAURA's strategy to expand its semiconductor equipment product range through mergers and acquisitions, aligning with China's SOE reforms [1][2][3] 2. Expansion of Product Coverage: By acquiring Kingsemi, NAURA aims to broaden its semi-equipment product offerings from etching, film deposition, and cleaning to include coating technologies, enhancing its competitive position in the semiconductor industry [2][3] 3. Market Performance and Projections: As of March 10, 2025, NAURA's stock price was Rmb455.96, with a target price set at Rmb495.00, indicating an expected share price return of 8.6% and a total expected return of 8.8% [3][9] 4. Valuation Methodology: The target price is based on a price-to-sales (P/S) ratio of approximately 7x for 2025E, reflecting NAURA's strong revenue and order flow from semiconductor equipment, which constitutes over 70% of its business [9] 5. Risks Identified: Key risks that could hinder reaching the target price include: - Slower-than-expected semiconductor import replacement trends - Increasing competition among Chinese semiconductor equipment manufacturers - Potential supply shortages of key components leading to gross profit margin erosion [10] Additional Important Content - Market Capitalization: NAURA's market capitalization is reported at Rmb243.407 billion (approximately US$33.644 billion) [3] - Dividend Yield: The expected dividend yield is noted at 0.2%, contributing to the overall return expectations [3] - Competitive Landscape: NAURA is positioned among leading Chinese semiconductor equipment makers, with a diverse product range that includes CMP, oxidation/diffusion, ALD, and more [5][6] This summary encapsulates the essential insights from the conference call regarding NAURA Technology's strategic moves, market positioning, and financial outlook within the semiconductor equipment industry.