Changjiang Securities·2025-06-19 13:19Investment Rating - The report maintains a "Positive" investment rating for the semiconductor and semiconductor production equipment industry [11]. Core Insights - Since early 2025, the semiconductor sector has entered an adjustment period following a surge driven by AI, facing multiple challenges such as geopolitical tensions and macroeconomic uncertainties, which have hindered demand growth [4][7]. - Despite these challenges, the report suggests that the valuation pressure on semiconductor equipment and materials is limited, with expectations for improved performance and order fulfillment as domestic wafer manufacturing capabilities enhance [4][7]. Summary by Sections Market Overview - The semiconductor sector has transitioned from a valuation-driven logic to one focused on performance, with dynamic P/E ratios reflecting a normalization to mid-2024 levels [4][21]. - The semiconductor equipment and materials sectors are currently undervalued compared to the broader semiconductor sector, with dynamic P/E ratios at 12.5% and 63.2% percentile points respectively [4][21]. Industry Growth Drivers - Global semiconductor sales are projected to grow by 11.2% in 2025, with semiconductor equipment and materials expected to see sales growth rates of 7.7% and 8% respectively [8][29]. - The domestic demand for semiconductor equipment remains strong, driven by local foundries' expansion and the potential for domestic companies to capture market share from foreign competitors [8][47]. Company-Specific Insights - In the equipment sector, companies like North Huachuang are noted for their stable growth and market leadership, while firms in niche segments like Zhongke Feicai and Xinyuanwei are highlighted for their potential breakthroughs [9]. - In the materials sector, companies such as Anji Technology and Xingfu Electronics are recognized for successfully replacing domestic products and expanding into overseas markets [9]. Future Outlook - The report anticipates that the domestic semiconductor industry will continue to grow, with significant opportunities for local companies to replace foreign products and expand their market presence [8][47]. - The ongoing development of new production lines and technologies by leading domestic firms is expected to further enhance their competitive positioning in the global market [66].