Semiconductor stocks saw significant gains recently. Notably, Braindom Technology (02203) soared by 57.63%, reaching HKD 0.465. Additionally, Hongguang Semiconductor (06908) increased by 5.68% to HKD 0.93, Shanghai Fudan (01385) rose 4.7% to HKD 18.7, SMIC (00981, Financial) climbed 3.31% to HKD 28.1, and Hua Hong Semiconductor (01347) gained 3% to HKD 25.75.
The rally comes on the heels of a report from the Semiconductor Industry Association (SIA), which highlighted that in August 2024, global semiconductor sales reached USD 53.1 billion. This marks an impressive year-over-year growth of 20.6% and a month-over-month increase of 3.5%, setting a new record high with five consecutive months of growth.
Analysts from Guojin Securities express optimism about the semiconductor sector's recovery, citing it as a beneficiary of multiple positive factors such as low valuation advantages. They foresee a potential cyclical rebound, enhanced performance, and valuation correction for leading companies.
In addition, a report by Citic Securities emphasizes the sector's potential valuation shift, driven by supportive policies, cyclical reversal, innovation, and domestic substitution. The report highlights that SMIC (00981, Financial) still has significant valuation headroom, with an A/H premium ratio of about 2:1. Meanwhile, Hua Hong Semiconductor's (01347) price-to-book ratio remains below its five-year average, indicating a relatively low valuation level.
