NAURA (002371.SZ): China Semis Capex to drive growth ahead; new tools to broaden product coverage

We are positive on NAURA and expect revenues to grow by +50% / +8% QoQ in 3Q26E / 4Q26E (vs. -5% QoQ in 2Q26), driving 2H26E revenues to grow by 52.3% HoH. As highlighted in CHIPS IV, we expect China semiconductor capex to grow by 13% / 15% / 15% / 10% / 10% in 2026E-30E, with China WFE spending increasing by 13% / 20% / 15% in 2026E-28E. We expect the growing China Semis Capex to drive NAURA's growth ahead, especially from Chinese memory and advanced-logic customers, increasing localization of semiconductor equipment and the company's expanding product coverage across etching, deposition, cleaning and thermal processes. Maintain Buy. Memory capex to drive growth ahead: We remain positive on Chinese memory capacity expansion, driven by generative AI, market share gain, and product lines expansion. We believe increasing process complexity in higher-layer 3D NAND and advanced memory is driving growing demand for etching and deposition equipment, where NAURA has broad product coverage. Co