Analysis of Semiconductor Equipment Industry Prosperity and Sustainability of Shenghui Integration's Growth

The rising prosperity of the semiconductor equipment industry is mainly driven by three core factors: First, investment growth driven by AI demand exceeds expectations. SEMI reports show that global semiconductor equipment sales are expected to grow by 13.7% year-on-year to 133 billion US dollars in 2025, covering advanced logic, memory, and advanced packaging technologies [1]; Second, accelerated domestic substitution has increased the market share of domestic equipment manufacturers. The Wind Semiconductor Equipment Index rose by 26.3% from June to August 2025, and all 22 constituent stocks in the industry achieved growth [2]; Third, wafer fab expansion demand is strong. China’s mainland wafer manufacturing capacity is expected to grow by 15% and 14% in 2024-2025 respectively, accounting for nearly one-third of global total capacity [3], directly driving equipment demand growth.

Shenghui Integration’s high growth mainly comes from two aspects: First, sufficient order backlog. As of the end of the first half of 2025, the balance of hand orders was 2.813 billion yuan, an increase of 69.24% year-on-year [4]; Second, breakthroughs in overseas business expansion. In December 2025, it won the bid for the Thailand Pengsheng PA02 engineering project, with a total order value of about 432 million yuan, further expanding overseas markets [5]. Guosen Securities predicts that the company’s net profit attributable to shareholders will maintain a growth rate of 24.1%-47.9% from 2025 to 2027 [6].

1. Industry Prosperity is Dual-Bound to Policy and Technology
   : AI technology upgrades and domestic substitution policies form a synergy, pushing the semiconductor equipment industry into a new growth cycle. The Chinese mainland market will become the core engine of global growth.
2. Structural Differences in Shenghui Integration’s Growth
   : The company’s overseas business expansion has offset the pressure of intensified competition in the domestic market, but R&D investment and technology upgrade status have not been fully verified, and long-term growth technical support needs further observation.
3. Short-Term Sentiment Deviates from Fundamentals
   : Shenghui Integration’s stock price has risen by 45.62% since December 2025, but the net profit attributable to shareholders in the first half of the year only increased by 9.63% year-on-year. The static price-earnings ratio (62.07 times) and price-to-book ratio (6.38 times) are significantly higher than the industry average, highlighting the risk of overheated stock prices [7][8].

1. Industry Cyclical Risk
   : The semiconductor industry has obvious cyclical fluctuations. If downstream demand slows down, it will directly affect the performance of equipment manufacturers.
2. Increased Competition Risk
   : Accelerated domestic substitution attracts more manufacturers to enter, and industry competition may lead to price declines and profit margin compression.
3. Shenghui Integration’s Stock Price Risk
   : Short-term stock price increases are too large, deviating from fundamentals, and there is a large downward risk; the company has issued a risk warning for abnormal stock price fluctuations [8].
4. Overseas Business Risk
   : Overseas expansion faces uncertainties such as geopolitical and exchange rate fluctuations.

1. Sustained Demand in AI and Advanced Packaging Fields
   : The iteration of AI technology and the growth of the advanced packaging market will provide long-term development space for equipment manufacturers.
2. Policy Support for Domestic Substitution
   : Domestic wafer fab expansion and import substitution policies will continue to promote the market share of domestic equipment manufacturers.

The rising prosperity of the semiconductor equipment industry is jointly driven by AI demand, domestic substitution, and wafer fab expansion; Shenghui Integration has achieved phased growth through hand orders and overseas business, but risks such as short-term overheated stock prices, high valuations, and industry cyclicality need attention. Investors should comprehensively consider the long-term trends of the industry and the short-term risks of the company, and rationally view its growth potential.

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