电子行业：半导体设备行业立足科技创新，国产替代空间广阔

Investment Rating - The report recommends a "Buy" rating for domestic semiconductor equipment companies, indicating an expectation of stock performance exceeding the market by more than 10% over the next 12 months [46]. Core Insights - The domestic semiconductor equipment industry is growing rapidly, with significant potential for domestic substitution. Semiconductor equipment is crucial for chip manufacturing, directly impacting production efficiency, cost, and quality. The importance of semiconductor equipment has increased in the context of complex external environments, with China becoming a major market for semiconductor equipment globally. The market size is expected to continue growing as domestic wafer production capacity expands [3][8][9]. - Leading domestic semiconductor equipment companies are primarily listed on the Sci-Tech Innovation Board, benefiting from rapid growth driven by domestic substitution. Eight out of the top ten semiconductor equipment companies by market capitalization are listed on this board, reflecting its focus on technology innovation and meeting national strategic needs [3][17]. - The report suggests focusing on domestic semiconductor equipment companies such as North Huachuang, Zhongwei Company, Shengmei Shanghai, Tuojing Technology, Huahai Qingke, Zhongke Feice-U, Xinyuanwei, Jingyi Equipment, Weidao Nano, Jingsheng Co., Huafeng Measurement and Control, and Jingzhida [3][21]. Summary by Sections 1. Rapid Growth of Domestic Semiconductor Equipment Industry - The semiconductor equipment market in China is robust, with a market size of $100.5 billion in 2022, accounting for over 20$24.47 billion, a year-on-year increase of 11.7%, representing 31.3% of the global market [8][9][11]. - The domestic equipment sales in 2022 were $59.3 billion, a 66.1% increase year-on-year, with a domestic substitution rate of 30.18% [12][14]. 2. Leading Domestic Semiconductor Equipment Companies - The top semiconductor equipment companies are concentrated on the Sci-Tech Innovation Board, with significant performance growth. The PE-TTM of these companies is approaching that of overseas leaders, indicating substantial growth potential driven by domestic substitution [17][19]. - Key companies include: - North Huachuang: Revenue of 145.88 billion CNY in the first three quarters of 2023, with a 45.7% year-on-year growth [18]. - Zhongwei Company: Revenue of 40.41 billion CNY in the first three quarters of 2023, with a 32.8% year-on-year growth [18]. - Shengmei Shanghai: Revenue of 27.50 billion CNY in the first three quarters of 2023, with a 39.01% year-on-year growth [18]. - Tuojing Technology: Revenue of 17.03 billion CNY in the first three quarters of 2023, with a 71.71% year-on-year growth [18]. 3. Market Dynamics and Future Outlook - The global semiconductor equipment market is expected to grow, with 42 new wafer fabs projected to start operations in 2024. China's chip manufacturers are expected to operate 18 projects in 2024, with a monthly wafer production capacity increase of 13% [11][12]. - The report emphasizes the strong growth potential for domestic semiconductor equipment manufacturers, driven by both market expansion and domestic substitution trends [3][12][21].