NAURA
China's largest semiconductor equipment platform, providing core process equipment such as etching, thin film deposition, and cleaning
China's only comprehensive equipment platform covering major process segments including etching, thin film, cleaning, and heat treatment, with strong customer stickiness and significant first-mover advantage in domestic substitution
Company Overview
NAURA Technology Group Co., Ltd. (referred to as "NAURA") was established in 2001 and listed on the Shenzhen Stock Exchange in 2010 (stock code: 002371), with its headquarters in Beijing. The company was formed through the strategic restructuring of the former Seven Star Electronics and Beijing North Microelectronics, making it a rare comprehensive semiconductor equipment platform enterprise in China. Its main business covers high-end semiconductor process equipment (etching, thin film deposition, cleaning, heat treatment, etc.), vacuum and new energy lithium battery equipment. It provides key equipment support in the AI chip manufacturing segment and is a core beneficiary of the domestic substitution wave.
NAURA Technology Group's core revenue sources cover equipment demands across integrated circuits, advanced packaging, MEMS, power devices, and other sectors. The product portfolio includes:
| Product Category | Corresponding Process Step | Revenue Share (approx.) | Core Customers | Gross Margin (approx.) |
|---|---|---|---|---|
| Etching Equipment | Dielectric etching, silicon etching, metal etching | ~35% | SMIC, Hua Hong, YMTC | 42% |
| Thin Film Deposition Equipment | PVD, CVD, ALD, EPI | ~30% | Same as above + TSMC (partial) | 40% |
| Cleaning Equipment | Single-wafer/batch cleaning, wet strip | ~10% | SMIC, Hua Hong | 38% |
| Thermal Processing Equipment | Oxidation, diffusion, annealing | ~10% | YMTC, CXMT | 35% |
| Others (vacuum, spare parts, etc.) | – | ~15% | – | – |
Primarily provides vacuum coating equipment, crystal growth equipment, and related solutions for industries such as photovoltaics, LED, and new energy batteries. In recent years, benefiting from PV capacity expansion and lithium battery coating equipment demand, the business has maintained steady growth, though its overall contribution to company profits remains limited.
Technology Moat
Moat One: Platform-Based Product Portfolio and Process Integration Capabilities
NAURA is one of the few companies globally that simultaneously possesses the four core process equipment capabilities of etching, thin film deposition, cleaning, and heat treatment, and is the only domestic equipment manufacturer in China capable of covering the entire front-end manufacturing process of integrated circuits (excluding lithography). This "one-stop" supply capability significantly reduces customers' procurement and verification costs, creating extremely strong customer stickiness.
Moat Two: Deep Ties with Leading Domestic Wafer Fabs and First-Mover Advantage in the Domestic Substitution Window
The company's equipment has been deployed in volume across production lines of major domestic wafer fabs including SMIC, Hua Hong Semiconductor, YMTC, and CXMT. Certain products (such as PVD and etchers) have achieved mature application at 14nm and above process nodes, and are advancing toward 7nm process verification. Against the backdrop of tightened US export controls, downstream customers show strong willingness to proactively adopt domestic equipment. As the "vanguard of domestic substitution," NAURA enjoys first-mover dividends.
| Dimension | Data |
|---|---|
| Global semiconductor equipment market share (2023) | ~2.5% (No. 1 among Chinese manufacturers, top 10 globally) |
| Domestic etch equipment market share | ~15% (second only to Applied Materials and Lam Research) |
| Domestic thin film deposition equipment market share | ~20% (leading in PVD domestically) |
| Key competitors (International) | Applied Materials, Lam Research, Tokyo Electron, KLA |
| Key competitors (Domestic) | AMEC (etch), ACM Research Shanghai (cleaning), Piotech (thin film deposition) |
| Key downstream customers | SMIC, Hua Hong Group, YMTC, CXMT, Silan Micro |
Financial and Growth
| Metric | Data (2023 Annual Report) |
|---|---|
| Revenue | RMB 22.04 billion (YoY +50.3%) |
| Net Profit Attributable to Parent | RMB 4.07 billion (YoY +66.1%) |
| Overall Gross Margin | 42.5% (semiconductor equipment business gross margin approx. 43%) |
| Net Margin | 18.5% |
| R&D Expense Ratio | 12.3% (sustained high investment) |
| Core Growth Logic | 1) Continued capacity expansion at domestic wafer fabs, driving up domestic equipment penetration; 2) Product breakthroughs from mature to advanced process nodes; 3) AI chips (high computing power) drive increased demand for etching/thin film deposition equipment; 4) Breakthrough trial orders from overseas customers. |
Note: 2024 Q1 revenue of approximately RMB 6 billion, YoY +50%, maintaining strong momentum.
Key Risks:
- External Sanctions and Technology Export Controls: Export controls imposed by the US/Netherlands on high-end equipment may extend to components, affecting the supply of key parts (e.g., RF power supplies, vacuum pumps).
- Technology Iteration Pressure: The process complexity for advanced nodes (<7nm), such as high-aspect-ratio etching and highly conformal thin-film deposition, has increased dramatically, posing challenges to the company's R&D capabilities.
- High Customer Concentration: The top five customers account for approximately 60% of sales. If a single customer's capital expenditure slows, earnings volatility may increase.
- Intensifying Competition: AMEC continues to catch up in the etching field and Piotech in thin-film deposition, while international giants exert pricing pressure.
Core Investment Thesis / Industry Value Summary:
NAURA is an "all-rounder" in the localization of China's semiconductor equipment. Leveraging its platform-based layout and deep partnerships with leading wafer fabs, and driven by AI chip manufacturing demand, it is well positioned to fully capture the benefits of the domestic capacity expansion cycle and the trend toward independent controllability. In the long run, if it achieves breakthroughs in core equipment for advanced nodes, it will become a force to be reckoned with in the global semiconductor equipment market.