Soochow Securities released a research report saying that NAURA obtained control of Xinyuan Micro, and after the merger, it will hold high-quality assets such as front-end track equipment, chemical cleaning equipment and temporary bonding/debonding equipment that are leading in China and have achieved mass production/verification orders, further improve the layout of NAURA semiconductor equipment industry chain, enhance the collaborative competitiveness of domestic equipment manufacturers in key links, and be optimistic about the front and rear semiconductor equipment + parts manufacturers.

It is mainly recommended that etching + thin film equipment manufacturers North Huachuang (002371.SZ) and China Micro Corporation (688012.SH); Low localization rate link equipment companies Xinyuan Micro (688037.SH), Zhongke Flying Test (688361.SH), Jingce Electronics (300567.SZ); thin film deposition equipment manufacturers Tuojing Technology (688072.SH), Microconductive Nano (688147.SH); Huafeng Measurement and Control (688200.SH), Changchuan Technology (300604.SZ), equipment manufacturers in the packaging and testing process; Parts and components equipment manufacturers Yingjie Electric (300820.SZ), Hanbell Precision Machinery (002158.SZ), Xinlai Applied Materials (300260.SZ), Fuchuang Precision (688409.SH).

NAURA obtained control of Xinyuan Micro, the transaction consideration was appropriate, and the acquisition procedure was fast: Advanced Manufacturing, a shareholder of Xinyuan Micro, signed a "Share Transfer Agreement" with NAURA to transfer 19.0649 million shares of the company held by it to NAURA at a price of 88.48 yuan per share, accounting for 9.49% of the company's total share capital. The transaction consideration is 1.687 billion yuan, and in addition, Zhongke Tiansheng intends to transfer all the shares it holds by 16.8997 million shares by way of public solicitation and transfer, accounting for 8.41% of the company's total share capital. The acquisition also exempted Zheng Guangwen, the actual controller of advanced manufacturing, from a 25% lock-up clause, and the time schedule was accelerated.

Xinyuan Micro is expected to achieve further development with the help of NAURA Group's resources and technical advantages: Xinyuan Micro focuses on lithography process gluing and developing equipment, monolithic wet process equipment and temporary bonding/debonding, etc., all of which are for downstream storage/logic manufacturers, while NAURA is the leading domestic etching, deposition and other front-end equipment, and its customers cover domestic first-line storage/logic manufacturers. Xinyuan Micro is expected to further improve the penetration rate of its own equipment in downstream manufacturers with the help of NAURA Huachuang's customer resources, and accelerate the realization of domestic substitution of TEL and other companies in the fields of front-end track, chemical cleaning and back-end advanced packaging; In addition, Xinyuan Micro will end the long-term state of no actual controller, improve the concentration of decision-making, and accelerate the speed of technology transformation and market response.

NAURA accelerates the construction of the platform with the help of mergers and acquisitions and improves the layout of the industrial chain: the types of equipment accounted for 60%, and the products covered silicon etching, dielectric etching, PVD, PECVD, ALD, EPI, MOCVD, LPCVD, tubular CVD, cleaning machines, etc. Referring to the development history of overseas leading companies such as AMAT and LAM, we are optimistic about the platform layout of semiconductor equipment manufacturers. After the merger and acquisition, NAURA will hold high-quality assets such as front-end tracking equipment, chemical cleaning equipment and temporary bonding/debonding equipment that are leading in China and have achieved mass production/verification orders, further improve the layout of NAURA semiconductor equipment industry chain, enhance the synergistic competitiveness of domestic equipment manufacturers in key links, and are optimistic that NAURA will fully benefit from the maintenance of high capital expenditure of local wafer manufacturers in China and the acceleration of the domestic substitution process of semiconductor equipment.