北方华创（002371）研报：1H24 profit alert points to solid 2Q results

    CMB International Global Markets has released an equity research report on Naura Technology (002371 CH), highlighting the company's solid performance in the first half of 2024. Naura announced a profit alert for 1H24, with expected revenue between RMB11.4-13.1bn, showing a Year-over-Year (YoY) growth of 35.4% to 55.9%. The net profit is estimated to be RMB2.6-3.0bn, with YoY growth of 42.8% to 64.5%. The company attributes this growth to its comprehensive semiconductor equipment offerings, increasing market share, economies of scale, and enhanced operational efficiency.

    The report forecasts that the second quarter of 2024 (2Q24) revenue at the midpoint could be RMB6.4bn, which is 40.8% YoY and 9.5% Quarter-over-Quarter (QoQ) growth, slightly below the consensus estimate by 5%. However, the 2Q24 net profit at the midpoint is expected to be RMB1.6bn, marking a 35.7% YoY and 45.4% QoQ growth, which is 9% above the consensus estimate. The Net Profit Margin (NPM) for 2Q24 at the midpoint is reported to be 25.5%, an improvement from the previous quarters.

    Analysts at CMB International Global Markets maintain a BUY rating for Naura Technology, with an unchanged Target Price (TP) of RMB405, based on 39x 2024E Price-to-Earnings (P/E) ratio. They believe Naura is well-positioned to benefit from the ongoing semiconductor supply chain localization in China, with new equipment orders exceeding RMB30bn in 2023, and over 70% related to semiconductor manufacturing tools.

    The report also notes that Naura could be a beneficiary of China's recently launched "Big Fund III," which amounts to US$47.5bn. Despite potential risks such as intensified competition and geopolitical tensions, the company remains a top pick under the semi-localization theme.

    The financial summary provided in the report shows consistent growth in Naura's revenue, operating profit, and net profit across the years 2021 to 2026. The company's gross margin and net margin are also expected to improve during this period. The report concludes with important disclosures and certifications from the research analyst, emphasizing the accuracy of the views expressed and the absence of any conflict of interest related to the securities or issuer covered in the report.