On September 30, the last trading day of this month, A-shares were completely "crazy", only 8 ST stocks fell in the two cities, the rest rose across the board, many stocks rose by more than 20%, and the total turnover of the two cities exceeded 2.5 trillion, and the money-making effect can be described as "bursting". After falling for so many years, the "backbone" of the stock market has finally stood up.

Among them, the semiconductor sector is the brightest star today. According to Flush data, the semiconductor sector index rose 16.29%, and SMIC (688981. SH), Cambrian (688256. SH), Zhuo Sheng Wei (300782. SZ) and other popular stocks have a daily limit of 20%.

In addition, VeriSilicon (688521. SH), Fumanwei (300671. SZ), Dongwei Semiconductor(688261. SH), Aiwei Electronics (688798. SH), Loongson Zhongke (688047. SH), SRP (688536. SH), Jiejie Microelectronics (300623. SZ), Fuchuang Precision (688409. SH), Changguang Huaxin (688048. SH), Fudan Microelectronics (688385. SH), Shanghai Silicon Industry (688126. SH) and others rose 20%.

At present, the global semiconductor industry is coming out of the trough and ushering in a new round of growth cycle. According to data released by the Semiconductor Industry Association, the global semiconductor industry sales reached $149.9 billion in the second quarter of 2024, an increase of 18.3% year-on-year and 6.5% quarter-on-quarter.

In addition, according to the "Mid-year Total Semiconductor Equipment Forecast Report" released by SEMI in July, global fab equipment spending will increase from $95.6 billion in 2023 to $98.3 billion in 2024, a year-on-year increase of 3%. Wafer fabs are the core of the semiconductor industry chain, and the growth of equipment spending also indicates that the semiconductor industry has entered an upward cycle to a certain extent.

As an important player in the chip track (especially memory chips, which are regarded as the vane of the semiconductor industry), Korea recently released data showing that the country's chip inventory fell by 42.6% year-on-year in August, a larger decline than the year-on-year decline of 34.3% in July.

Meanwhile, Korea's chip production and shipments rose 10.3% and 16.1%, respectively, in August, further indicating that the semiconductor industry's boom cycle is continuing through most of the third quarter.

Some analysts pointed out that the above data may reflect that under the wave of AI, the prosperity of memory chips continues to exceed expectations, driving the overall sales growth of semiconductors.

In addition, on the domestic side, the high-level has recently offered a series of policy combinations, which directly hit the pain points of the current capital market. The "gift package" of loose liquidity has further ignited the rebound enthusiasm of the capital market, especially the technology sector.

Western Securities believes that under the policy combination, the valuation change will be ahead of the change in economic data, and the valuation center of the technology sector is expected to rise. Semiconductors, as a typical example, have also seen their valuations rise.

In terms of performance, in the first half of 2024, the operating income of most A-share semiconductor listed companies has achieved positive growth, and the profitability has also improved compared with the same period last year.

Among them, the field of equipment is the first, and NAURA (002371. SZ) achieved operating income of 12.335 billion yuan in the first half of the year, a year-on-year increase of 46.38%, and the net profit attributable to the parent company was 2.781 billion yuan, a year-on-year increase of 54.54%. Shengmei Shanghai (688082. SH) achieved revenue of 2.404 billion yuan in the first half of the year, a year-on-year increase of 49.33%, and a net profit attributable to the parent company of 443 million yuan, a slight year-on-year increase.

As a supplier of many consumer electronics companies and mobile phone giants, Weir shares (603501. In the first half of the year, the company achieved revenue of 12.091 billion yuan, a year-on-year increase of 36.50%, and a net profit attributable to the parent company of 1.367 billion yuan, a year-on-year increase of 792.79%, which also reflects the substantial improvement of the industry's prosperity.

Tianyue Advanced(688234. SH) as a leading enterprise of silicon carbide substrates in China, related products have been exported to the outside world. In the first half of the year, the company's revenue reached 912 million yuan, a year-on-year increase of 108.27%, and the net profit attributable to the parent company was 102 million yuan, a year-on-year turnaround.

BIWIN Storage(688525. SH) achieved operating income of 3.441 billion yuan in the first half of the year, a significant increase of 199.64% year-on-year, and the net profit attributable to the parent company was 283 million yuan, which also successfully turned around its losses. The company also said that benefiting from the rapid growth of demand for AI servers, the full demand for HBM and the strong recovery of the North American server market, the storage market will enter the traditional peak season in the third quarter, and the industry boom is expected to continue.

It can be seen from the above that the fundamentals of semiconductors are resilient, and the recovery of the industry is becoming a reality, which may also become one of the important factors for today's plate to set off a rising tide, and institutional funds are more optimistic about the subsequent development.

Author: Flying Fish

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