Key Call: NAURA Technology Group "China's aggressive memory capex and WFE..."

Research evidence excerpt

Key Call: NAURA Technology Group "China's aggressive memory capex and WFE..."

Global Research

17 July 2026abc

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EquitiesKey Call: NAURA Technology Group

China's aggressive memory capex and WFE China

localization intact; maintain Buy Semiconductors

12-month rating Buy

12m price target Rmb800.00

Maintain Buy on strong fundamentals

After a strong rally in 1H26 (NAURA's stock price was +93% vs. A-share Semi/HS300

indexes +84%/+7% in the same period), the stock has had meaningful profit taking Price (16 Jul 2026) Rmb702.76

since July (-20% vs. A-share Semi/HS300 indexes -21%/-6%) amid investors' rising RIC: 002371.SZ BBG: 002371 CS

concerns about the fluctuation of global tech stocks (SOX index -18% in the same

Trading data and key metrics

period), as well as liquidity fears due to the upcoming CXMT IPO (see our sector note,

Sentiment and liquidity concerns vs. resilient fundamentals – which will prevail?). We 52-wk range Rmb935.36-320.05

maintain our Buy rating, given still-solid fundamentals (including China’s aggressive Market cap. Rmb509b/US$75.2b

memory capex in the next few years + accelerating WFE localization). Shares o/s 725m (ORDA)

Free float 39%

Structural growth drivers for NAURA are intact Avg. daily volume ('000) 13,891

As it is the largest and leading domestic WFE supplier, we view NAURA as a major Avg. daily value (m) Rmb9,173.9

beneficiary of China's rapid memory capex growth in 2027/2028 (we forecast the Common s/h equity (12/26E) Rmb44.0b

combined WFE capex of CXMT and YMTC to grow 52%/32% YoY in those years; see P/BV (12/26E) 11.6x

note, Improved growth visibility for 2027-28 reinforcing our constructive view), as well Net debt to EBITDA (12/26E) NM

as accelerating semiconductor equipment localisation (we expect the overall sufficiency