26 Aug 2026 CMB International Global Markets | Equity Research | Company Update

Naura Technology (002371 CH)

Platform strength drives solid growth; Maintain BUY

NAURA reported 1H26 revenue of RMB20.16bn (+24.9% YoY) and net profit of RMB3.37bn (+5.1%). In 2Q26, revenue reached RMB9.84bn (+24.0% YoY, 4.7% QoQ) and net profit was RMB1.74bn (+6.6% YoY, +6.2% QoQ), both below Bloomberg consensus. Earnings growth lagged revenue due to higher R&D and selling expenses and GPM pressure. In 2Q26, GPM fell 1.4ppts QoQ to 39.3%, and mgmt. attributed the pressure to higher component iteration and upgrade costs during new-product validation and discounts to selected customers. Positively, OCF reached RMB3.77bn in 1H26, supported by stronger collections. As China’s largest platform-based semiconductor equipment provider, NAURA remains well positioned for domestic substitution, while China’s WFE sector remains our top thematic pick. Correspondingly, we revise down our FY26/27E sales forecasts by -2.5%/-2.3% and GPM by -0.4/-1.1ppts. Maintain BUY with TP adjusted to RMB814, based on 52x 2027E P/E, 1-SD above its historical average.

 Equipment growth remained broad-based, but segment margins declined in 1H26. Electronic process equipment revenue, including semiconductor and vacuum/new-energy equipment, rose 25.9% YoY to RMB19.20bn, accounting for 95.3% of total revenue; GPM fell 2.0ppts to 39.8%. The growth was driven by market share gains in etching, thin-film deposition, thermal processing and wet cleaning, volume shipments of ion implantation and track systems, and batch deliveries of bonding equipment. Kingsemi’s consolidation further broadened product coverage. Component revenue rose 5.5% YoY to RMB915mn, while GPM declined 4.2ppts to 46.2% amid stronger competition and downstream pricing pressure. NAURA is targeting higher-value applications, including AI computing, data centers and high-end industrial markets, to support its product-mix upgrade.

 Higher spending supports product penetration but delays operating leverage. In 1H26, R&D expenses increased 28.9% YoY to RMB2.68bn, and selling expenses rose 63.5% YoY to RMB761mn due to larger sales and service teams and Kingsemi’s consolidation. These investments support qualification across additional process steps. New ICP etching, ion-beam etching, hybrid-bonding and high-end TSV electroplating systems expand NAURA’s exposure to advanced logic, memory and advanced packaging. Meanwhile, the improvement in OCF in 1H26 strengthened cash conversion.

 Order indicators support revenue visibility while margin recovery remains the key earnings variable. In 1H26, inventory and contract liabilities reached RMB30.5bn and RMB5.3bn, up 6.7% and 26.6% QoQ, respectively, indicating a solid production pipeline and stronger customer prepayments. Key risks include slower product validation, intensifying price competition, persistent GPM pressure, weaker semiconductor capex, etc.

Earnings Summary

(YE 31 Dec) 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) 5,621.8 5,522.0 7,500.4 11,353.9 15,926.3

YoY growth (%) 44.2 (1.8) 35.8 51.4 40.3 EPS (Reported) (RMB) 7.83 7.64 10.34 15.65 21.95 P/E (x) 89.4 91.6 67.8 44.8 31.9 Source: Company data, Bloomberg, CMBIGM estimates

Naura Technology (002371 CH)

• Platform strength drives solid growth; Maintain BUY

Target Price RMB814.00

(Previous TP RMB540.00)

Up/Downside 16.2% Current Price RMB700.40

China Semiconductors Kevin ZHANG

(852) 3761 8727 kevinzhang@cmbi.com.hk

Aaron GUO

(852) 3916 3715 aaronguo@cmbi.com.hk

Stock Data

Mkt Cap (RMB mn) 508,280.3 Avg 3 mths t/o (RMB mn) 9,029.9 52w High/Low (RMB) 935.36/350.95 Total Issued Shares (mn) 725.7

Source: FactSet

Shareholding Structure

Beijing Sevenstar Huadian Technology Gro

33.2% Beijing Electronics Holding 7.3%

Source: Bloomberg

Share Performance

Absolute Relative 1-mth -7.5% -10.7% 3-mth 0.3% 14.6% 6-mth 41.2% 54.8%

Source: FactSet

12-mth Price Performance

Source: FactSet

PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk

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Figure 1: Earnings revision New Old Diff (%)

RMBmn FY26E FY27E FY28E FY26E FY27E FY28E FY26E FY27E FY28E Revenue 50,677 64,217 80,124 51,977 65,752 81,559 -2.5% -2.3% -1.8% Gross profit 20,155 26,751 34,573 20,895 28,142 33,521 -3.5% -4.9% 3.1% Net profit 7,500 11,354 15,926 7,739 11,049 15,595 -3.1% 2.8% 2.1% EPS (RMB) 10.34 15.65 21.95 10.71 15.30 21.59 -3.5% 2.3% 1.6% Gross margin 39.8% 41.7% 43.1% 40.2% 42.8% 41.1% -0.4 ppt -1.1 ppt 2 ppt

• Net margin 14.8% 17.7% 19.9% 14.9% 16.8% 19.1% -0.1 ppt 0.9 ppt 0.8 ppt

Source: Company data, CMBIGM estimates

Figure 2: CMBIGM estimates vs. BBG consensus

CMBI estimates Consensus Diff (%)

RMBmn FY26E FY27E FY28E FY26E FY27E FY28E FY26E FY27E FY28E Revenue 50,677 64,217 80,124 50,726 65,528 81,968 -0.1% -2.0% -2.2% Gross profit 20,155 26,751 34,573 20,594 26,806 33,884 -2.1% -0.2% 2.0% Net profit 7,500 11,354 15,926 7,673 11,361 15,129 -2.2% -0.1% 5.3% EPS (RMB) 10.34 15.65 21.95 10.60 15.41 21.22 -2.5% 1.5% 3.4% Gross margin 39.8% 41.7% 43.1% 40.6% 40.9% 41.3% -0.8 ppt 0.7 ppt 1.8 ppt

• Net margin 14.8% 17.7% 19.9% 15.1% 17.3% 18.5% -0.3 ppt 0.3 ppt 1.4 ppt

Source: Bloomberg consensus, CMBIGM estimates

Figure 3: P/E chart

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1-yr Forward P/E Mean

Mean+1SD Mean-1SD

Source: Company data, CMBIGM estimates

Figure 4: P/E band

(RMB)

900

800

700

600

500

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200

03/26

04/26

08/25

09/25

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Closing Px 32.5x 38.9x 45.4x 51.9x 58.3x

Source: Company data, CMBIGM estimates

Financial Summary

INCOME STATEMENT 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Revenue 22,079 30,075 39,353 50,677 64,217 80,124 Cost of goods sold (13,005) (17,162) (23,571) (30,522) (37,466) (45,551) Gross profit 9,075 12,913 15,782 20,155 26,751 34,573 Operating expenses (4,627) (6,366) (9,980) (12,080) (14,522) (17,419) Selling expense (167) (179) (237) (280) (322) (362) SG&A expense (2,836) (3,265) (5,069) (5,777) (6,679) (7,692) R&D expense (2,475) (3,699) (5,435) (6,993) (8,862) (11,057) Others 852 777 762 971 1,341 1,693 Operating profit 4,448 6,546 5,802 8,075 12,229 17,154

Other income 22 22 51 0 0 0 Other expense (4) (35) (8) 0 0 0

Pre-tax profit 4,466 6,533 5,845 8,075 12,229 17,154 Income tax (433) (819) (436) (807) (1,223) (1,715) Others 0 0 0 0 0 0

After tax profit 4,033 5,714 5,409 7,267 11,006 15,438 Minority interest 134 92 (113) (233) (348) (488) Net profit 3,899 5,622 5,522 7,500 11,354 15,926

BALANCE SHEET 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Current assets 38,226 46,669 59,321 68,037 80,466 101,223 Cash & equivalents 12,451 12,396 17,337 16,794 20,984 28,038 Account receivables 3,767 6,236 8,217 11,221 13,410 19,517 Inventories 16,992 23,635 28,627 34,926 38,979 45,883 Prepayment 1,480 909 863 985 1,154 1,415 Other current assets 3,535 3,494 4,277 4,111 5,938 6,368 Non-current assets 15,399 19,696 30,480 34,492 39,623 46,016 PP&E 3,352 6,314 7,568 7,770 8,067 8,457 Right-of-use assets 215 241 268 219 202 197 Deferred income tax 450 712 1,239 1,414 1,657 2,031 Intangibles 2,547 4,710 10,520 12,933 15,777 19,144 Goodwill 27 38 2,386 2,386 2,386 2,386 Other non-current assets 8,808 7,681 8,498 9,769 11,534 13,801 Total assets 53,625 66,366 89,801 102,530 120,090 147,239

Current liabilities 19,083 23,805 26,180 33,347 37,121 42,236 Short-term borrowings 23 94 319 648 816 605 Account payables 6,117 10,276 11,803 18,301 18,652 21,284 Tax payable 209 384 586 669 783 960 Other current liabilities 3,418 5,577 7,491 6,902 8,872 9,581 Contract liabilities 8,317 6,220 4,291 4,899 5,738 7,036 Accrued expenses 999 1,253 1,690 1,930 2,260 2,771 Non-current liabilities 9,717 10,021 19,693 18,556 22,135 29,915 Long-term borrowings 5,835 3,946 12,973 10,998 13,420 19,412 Bond payables 0 0 0 0 0 0 Deferred income 4 1 487 487 487 487 Other non-current liabilities 3,877 6,074 6,233 7,072 8,228 10,017 Total liabilities 28,800 33,826 45,873 51,904 59,256 72,151

Share capital 530 534 725 725 725 725 Retained earnings 8,776 13,895 18,802 25,701 36,257 50,999 Other reserves 15,061 16,653 18,200 18,231 18,231 18,231 Total shareholders equity 24,367 31,082 37,726 44,657 55,212 69,954 Minority interest 458 1,458 6,202 5,969 5,621 5,133 Total equity and liabilities 53,625 66,366 89,801 102,530 120,090 147,239

CASH FLOW 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Operating Profit before taxation 4,466 6,533 5,845 8,075 12,229 17,154 Depreciation & amortization 730 1,071 1,567 2,447 3,058 3,804 Tax paid (433) (819) (436) (807) (1,223) (1,715) Change in working capital (3,409) (6,364) (6,766) (3,277) (5,810) (10,062) Others 1,012 1,152 1,923 (1,364) (1,653) (1,565) Net cash from operations 2,365 1,572 2,133 5,074 6,600 7,616

Investing Capital expenditure (1,980) (2,082) (2,262) (4,272) (5,221) (6,274) Acquisition of subsidiaries/ investments (81) (173) (2,792) 0 0 0 Net proceeds from disposal of short-term investments

3 0 275 0 0 0

Others 0 8 850 1,241 1,400 1,608 Net cash from investing (2,058) (2,248) (3,929) (3,031) (3,821) (4,665)

Financing

Dividend paid (388) (617) (908) (927) (1,138) (1,635) Net borrowings 1,888 133 7,156 (1,646) 2,591 5,780 Proceeds from share issues 212 1,280 485 0 0 0

Others (66) (66) (126) (17) (48) (48) Net cash from financing 1,647 729 6,607 (2,591) 1,405 4,097

Net change in cash

Cash at the beginning of the year 10,261 12,347 12,385 17,183 16,641 20,830 Exchange difference 14 5 (14) 5 6 7 Others 1,954 33 4,812 (547) 4,184 7,047 Cash at the end of the year 12,229 12,385 17,183 16,641 20,830 27,884

GROWTH 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Revenue 50.3% 36.2% 30.9% 28.8% 26.7% 24.8% Gross profit 40.9% 42.3% 22.2% 27.7% 32.7% 29.2% Operating profit 55.1% 47.2% (11.4%) 39.2% 51.4% 40.3% Net profit 65.7% 44.2% (1.8%) 35.8% 51.4% 40.3%

PROFITABILITY 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Gross profit 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%

GEARING/LIQUIDITY/ACTIVITIES 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec Current ratio (x) 2.0 2.0 2.3 2.0 2.2 2.4

VALUATION 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec P/E 128.4 89.4 91.6 67.8 44.8 31.9

Source: Company data, CMBIGM estimates. Note: The calculation of net cash includes financial assets.

Disclosures & Disclaimers

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CMBIGM Ratings

BUY : Stock with potential return of over 15% over next 12 months HOLD : Stock with potential return of +15% to -10% over next 12 months SELL : Stock with potential loss of over 10% over next 12 months NOT RATED : Stock is not rated by CMBIGM

OUTPERFORM : Industry expected to outperform the relevant broad market benchmark over next 12 months MARKET-PERFORM : Industry expected to perform in-line with the relevant broad market benchmark over next 12 months UNDERPERFORM : Industry expected to underperform the relevant broad market benchmark over next 12 months

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