半导体设备行业：技术创新是核心，并购有望如虎添翼

Investment Rating - The investment rating for the semiconductor products and equipment industry is "Outperform the Market" [3]. Core Insights - The domestic semiconductor equipment companies in China have significant growth potential compared to their overseas counterparts, with policies encouraging mergers and acquisitions to strengthen the industry [5][6]. - The report highlights a "2 Super, 3 Strong, N Small" market structure in the A-share semiconductor equipment sector, indicating a concentration of market power among a few leading firms [5][13]. - The report emphasizes the importance of technological innovation and strategic acquisitions for domestic companies to enhance their competitiveness and market position [6][7]. Summary by Sections A-share Semiconductor Equipment Companies Overview - As of October 31, 2024, there are 38 listed semiconductor equipment companies in the A-share market, with a total market capitalization of 814.65 billion yuan [5][13]. - The two largest companies by market capitalization are North Huachuang (209.18 billion yuan) and Zhongwei Company (119.73 billion yuan) [5][13]. Cyclical Changes in the Semiconductor Industry - The semiconductor industry is characterized by cyclical fluctuations, with leading overseas companies successfully navigating these cycles through innovation and product line expansion [21][24]. - The report notes that the top five global semiconductor equipment manufacturers account for 88% of the market share, highlighting the dominance of companies like ASML and AMAT [18][19]. Policy on Mergers and Acquisitions - The China Securities Regulatory Commission issued guidelines on September 24, 2024, to promote mergers and acquisitions in the market, focusing on enhancing industry concentration and supporting companies in transitioning to new productive forces [30][31]. - The report identifies ongoing acquisition cases in the semiconductor sector, indicating a trend towards consolidation and strategic partnerships [33][34]. Investment Recommendations - The report suggests that in the next 1-2 years, there will be an increase in mergers and acquisitions within the semiconductor sector, with a focus on companies like North Huachuang, Zhongwei Company, and others [7][8]. - It is recommended to monitor companies that are actively pursuing mergers and acquisitions to enhance their technological capabilities and market presence [33][34].