NAURA Technology Group Co: Revenue up 32.97% and net profit up 14.83% year-over-year, but negative cash flow

China's semiconductor industry is expected to benefit from favorable memory market dynamics through 2026, Frank He and Cara Su of HSBC Qianhai Securities say in a note. NAND supply is likely to remain tight due to strict utilization controls by major suppliers. DDR5 DRAM prices could rise further, supported by AI server demand, while the DDR4 chip shortage may persist as major suppliers phase out production, they add. Rising prices and the push for local manufacturing are driving capacity expansion by memory leaders Yangtze Memory Technologies and CXMT, which should benefit domestic supply-chain companies, particularly equipment makers. HSBC's top sector picks are buy-rated GigaDevice, AMEC and Naura. (jason.chau@wsj.com)

Naura Technology Group may benefit as China's semiconductor-chip supply chain decouples from the U.S., UOB Kay Hian analysts say in a research report. China is aggressively expanding local semiconductor-chip production at a three-year CAGR of 25% over 2025-2027, and fabrication plants are quickening the verification process for Chinese wafer fabrication equipment, the analysts note. Given Naura Technology's extensive product coverage and industry-leading technological innovation capabilities, it'll likely be a primary market-share gainer amid this localization trend, the analysts say. The brokerage initiates coverage of the stock with a buy rating and a target price of CNY550.60. Shares last closed at CNY452.36 on Sept. 30. (ronnie.harui@wsj.com)

Revenue grew 29.5% year-over-year to ¥16.14 billion, with net profit up 15% to ¥3.21 billion. Major acquisition of Piotech expanded the product line, while R&D investment surged 30%. Cash flow was negative due to high investment and M&A.

Original document: NAURA Technology Group Co Ltd Class A [002371] Interim report — Aug. 29 2025

Naura Technology Group raised its stake in semiconductor equipment maker Shenyang Piotech to 17.9% from 8.4%.

The transaction follows the electronic components manufacturer's earlier purchase of a 9.5% stake in Shenyang Piotech from another shareholder, according to a Wednesday filing with the Shenzhen bourse.

Q1 2025 saw revenue rise 37.90% year-over-year to ¥8.21 billion and net profit up 38.80% to ¥1.58 billion, driven by new product breakthroughs and market share gains. Operating cash flow turned negative due to increased procurement for orders.

Original document: NAURA Technology Group Co Ltd Class A [002371] Interim report — Apr. 26 2025

Revenue grew 35.14% to RMB 29.84 billion and net profit rose 44.17% to RMB 5.62 billion, driven by strong semiconductor equipment sales and robust R&D investment. The company maintains a positive outlook, focusing on innovation, supply chain resilience, and global expansion.

Original document: NAURA Technology Group Co Ltd Class A [002371] Interim report — Apr. 26 2025