Naura Technology (002371 CH) Q3 2024 Earnings Update
Revenue and Profit Growth:
- Q3 2024 Revenue: RMB 8.0 billion, up 30.1% YoY and 23.8% QoQ.
- Net Profit (NP): RMB 1.7 billion, up 55.0% YoY and 1.7% QoQ.
- Gross Profit Margin (GPM): 42.3%, up 5.9 percentage points (pp) from Q3 2023 but down 5.1 pp sequentially.
Key Drivers:
- Significant growth in semiconductor equipment sales (up 47.0% in 9M24).
- Higher photovoltaic (PV) equipment sales with lower GPM.
- Seasonal fluctuations in gross margins.
2024 and 2025 Forecast Adjustments:
- Gross Margin (GPM): Revised down to 43.7% and 44.3% for 2024 and 2025 respectively, reflecting seasonality and product mix.
- Net Profit (NP): Slightly revised down by 3% and 4% for 2024 and 2025 respectively.
Valuation and Analyst Recommendation:
- Target Price (TP): Adjusted to RMB 426, based on 30x 2025E P/E.
- Stock Performance: Strong market performance with a 16.6% increase over the past month.
- Shareholding Structure: Beijing Sevenstar Huadian Technology Group holds 33.6%, and Beijing Electronics Holding 9.4%.
Financial Highlights:
- Revenue Growth: 39.5% YoY in 9M24, driven by strong domestic semiconductor equipment sales.
- Bookings: Not announced as of yet; 2024 bookings announced in January 2024.
- Current Ratio: Maintained at 2.0x.
Analyst Recommendation:
- Rating: Maintain BUY.
- Potential Risks: Worsening China-US trade relations, heightened geopolitical tensions, and slower-than-expected R&D.
Key Metrics:
- Market Cap: RMB 206.114.5 million.
- Average Monthly Turnover: RMB 2,171.1 million.
- 52-week High/Low: RMB 405.00/216.52.
- P/E (2025E): 27.4x.
- ROE: 21.3%.
- Gearing: Current ratio of 1.9x.
- Valuation Band: 16.7x to 29.4x based on 1-year forward P/E.
Summary
Naura Technology reported solid Q3 2024 results with robust revenue and net profit growth, driven primarily by strong semiconductor equipment sales. The company's gross margin experienced a slight decline due to higher PV equipment sales and seasonal fluctuations. Analysts maintain a BUY rating with an adjusted target price of RMB 426, based on 30x 2025E P/E. Key risks include trade tensions and slower R&D progress.
