Soochow: NAURA Technology Group (002371.SZ) acquires Kingsemi Co., Ltd. to accelerate the platformization process and optimistic about the domestic semiconductor equipment acquisition and restructuring wave.

Soochow released a research report stating that NAURA Technology Group acquired control of Kingsemi Co., Ltd. After this acquisition, it will hold assets such as leading domestic front-end Track equipment, chemical cleaning equipment, and temporary bonding/delamination equipment that have already achieved mass production/verification orders. This will further enhance NAURA Technology Group's semiconductor equipment industry chain layout, strengthen the collaboration competitiveness of domestic equipment manufacturers in key links, and have a positive outlook on both front-end and back-end semiconductor equipment and component manufacturers. Key recommendations include etching and thin film equipment provider NAURA Technology Group (002371.SZ), Advanced Micro-Fabrication Equipment Inc. China (688012.SH); low domesticization rate equipment providers Kingsemi Co., Ltd. (688037.SH), Skyverse Technology (688361.SH), Wuhan Jingce Electronic Group (300567.SZ); film deposition equipment provider Piotech Inc. (688072.SH), Jiangsu Leadmicro Nano Technology (688147.SH); testing equipment providers Beijing Huafeng Test & Control Technology (688200.SH), Hangzhou Changchuan Technology (300604.SZ); component equipment providers Sichuan Injet Electric (300820.SZ), Shanghai Hanbell Precise Machinery (002158.SZ), Kunshan Kinglai Hygienic Materials (300260.SZ), Shenyang Fortune Precision Equipment (688409.SH). NAURA Technology Group acquires control of Kingsemi Co., Ltd., the transaction price is appropriate, and the acquisition process is fast: Shareholders of Kingsemi Co., Ltd. have signed a Share Transfer Agreement with NAURA Technology Group to transfer all their company shares of 19.0649 million shares at a price of 88.48 yuan/share, accounting for 9.49% of the total share capital and a transaction price of 1.687 billion yuan. In addition, Zhongke Tiansheng plans to transfer all its shares of 16.8997 million shares, accounting for 8.41% of the total share capital, through public solicitation transfer agreements, and NAURA Technology Group will actively increase its shares and obtain control of the company through participation in public bidding. This acquisition also exempts Zheng Guangwen, the actual controller of Kingsemi Co., Ltd., from the 25% lock-up clause, speeding up the process. Kingsemi Co., Ltd. is expected to further develop with the resources and technological advantages of NAURA Technology Group: Kingsemi Co., Ltd. focuses on lithography process coating and developing equipment, single-piece wet process equipment, and temporary bonding/delamination equipment, all aimed at downstream storage/logic manufacturers. NAURA Technology Group, as a leading front-end equipment provider in etching and deposition domestically, has customers covering domestic first-line storage/logic manufacturers. Kingsemi Co., Ltd. is expected to leverage NAURA Technology Group's customer resources to further improve the penetration rate of its equipment at downstream manufacturers, accelerate the realization of domestic substitution for TEL and other companies in front-end Track, chemical cleaning, and advanced packaging areas; in addition, Kuangsemi Co., Ltd. will end its long-term state without an actual controlling shareholder, improve decision-making concentration, and accelerate technology transfer and market response speed. NAURA Technology Group accelerates platform construction through acquisitions to improve its industrial layout: NAURA Technology Group's equipment types account for 60%, covering silicon etching, dielectric etching, PVD, PECVD, ALD, EPI, MOCVD, LPCVD, tube CVD, cleaning machines, etc. Referring to the development history of overseas leaders such as AMAT and LAM, it is optimistic about the platform layout of semiconductor equipment manufacturers. After this acquisition, NAURA Technology Group will hold leading domestic assets such as front-end Track equipment, chemical cleaning equipment, and temporary bonding/delamination equipment that have already achieved mass production/verification orders, further improving NAURA Technology Group's semiconductor equipment industry chain layout, strengthening the collaborative competitiveness of domestic equipment manufacturers in key links. It is believed that NAURA Technology Group will fully benefit from the high capital expenditure of Chinese domestic wafer manufacturers and the accelerated process of domestic substitution of semiconductor equipment.