CCEM(SZ:300655) EBSCN·2024-10-30 09:19Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on the expected recovery in the semiconductor industry and the company's leading position in the high-purity chemical sector [3][8]. Core Insights - The company reported a revenue of 1.06 billion yuan for the first three quarters of 2024, reflecting a year-on-year growth of 10.56%. However, the net profit attributable to shareholders decreased significantly by 97.04% to 665,000 yuan [1]. - In Q3 2024, the company achieved a revenue of 367 million yuan, a year-on-year increase of 10.76% and a quarter-on-quarter increase of 0.71%. The net profit for the quarter was 5.64 million yuan, down 51.91% year-on-year but up 39.43% quarter-on-quarter [1][2]. - The overall gross margin improved significantly in Q3 2024, reaching 22.4%, an increase of 6.6 percentage points from the previous quarter, although it declined by 2.0 percentage points year-on-year [2]. Summary by Sections Revenue and Profitability - The company has seen steady revenue growth due to the continuous increase in high-purity chemical products, driven by the recovery in the semiconductor market and improved capacity utilization [2][3]. - The company’s R&D expenses reached a record high of 29.66 million yuan in Q3 2024, marking a year-on-year increase of 31.5%, with an R&D expense ratio of 8.1% [2]. Market Position and Capacity - The company is a leading player in the domestic high-purity wet chemical market, with significant production capacity established across four bases, including high-purity sulfuric acid and high-purity hydrogen peroxide [3]. - The company is the largest supplier of high-purity hydrogen peroxide in China, holding approximately 40% market share [3]. Financial Forecast - The profit forecast for 2024-2026 has been revised downwards, with expected net profits of 36 million yuan, 101 million yuan, and 134 million yuan respectively, reflecting the current pricing and profitability challenges in the high-purity chemical sector [3].