CCEM(SZ:300655) EBSCN·2025-08-25 03:26Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company reported a revenue of 768 million yuan in H1 2025, a year-on-year increase of 10.68%, and achieved a net profit attributable to shareholders of 69.75 million yuan, marking a return to profitability [1][2]. - The high-purity chemical business saw significant growth, with revenue reaching 451 million yuan, up 22.5% year-on-year, driven by increased sales of high-purity hydrogen peroxide and other products [2]. - The semiconductor materials market is expected to grow, with a projected global market size of approximately 70 billion USD for wet cleaning chemicals by 2029, benefiting the company as a leading domestic player in this sector [2]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 398 million yuan, a year-on-year increase of 9.33% and a quarter-on-quarter increase of 7.58% [1]. - The net profit for Q2 2025 was 26.25 million yuan, a year-on-year increase of 549% but a quarter-on-quarter decrease of 39.66% [1]. - The company’s high-purity chemical business gross margin improved by 13.4 percentage points to 24.6% due to increased capacity utilization and lower raw material prices [2]. Market Outlook - The global semiconductor materials market is projected to grow by approximately 6% in 2025, reaching around 700 billion USD, with a compound annual growth rate (CAGR) of about 4.5% expected until 2029 [2]. - The company is well-positioned to benefit from the growth in the semiconductor materials market, particularly in wet electronic chemicals and photoresists, as domestic material penetration increases [2]. Profit Forecast and Valuation - The report maintains profit forecasts for 2025-2027, expecting net profits of 101 million yuan, 134 million yuan, and 178 million yuan respectively [3][4]. - The company’s earnings per share (EPS) is projected to improve from 0.10 yuan in 2025 to 0.17 yuan in 2027 [4][11].