Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The company, Super Pure Technology, is recognized as a national-level "Little Giant" and a champion in the manufacturing sector, leading the domestic market in ultra-pure water systems for the semiconductor industry [1][10] - The global ultra-pure water system market is projected to grow from approximately $3 billion in 2019 to about $5 billion by 2027, with a compound annual growth rate (CAGR) of 5.8% [2][46] - The company achieved revenue of 314 million yuan and a net profit of 23.4 million yuan in the first half of 2024, with a gross margin of 21.62% [1][37] Company Overview - Super Pure Technology specializes in providing ultra-pure water treatment systems and maintenance services for high-tech industries, particularly in the semiconductor sector [1][10] - The company has been recognized for its innovation and has accumulated 41 patents, including 4 invention patents and 11 utility model patents [1][10] - The company has established long-term relationships with major clients in the semiconductor and photovoltaic industries, including well-known companies like BYD and LONGi Green Energy [12][27] Industry Analysis - The ultra-pure water market is primarily driven by demand from the electronics, semiconductor, chemical, and pharmaceutical industries [46][49] - The eastern region of China is more developed in the ultra-pure water system industry, while the western region is emerging, indicating a growing market potential [50][51] - The semiconductor industry in China is experiencing rapid growth, with significant government support and increasing domestic production capacity [67][68] Financial Performance - In 2023, the company reported a revenue of 545 million yuan, a year-on-year increase of 27.03%, and a net profit of 47.29 million yuan, up 33.50% from the previous year [37][38] - The gross margin for the company's main business segments varies, with the water treatment system achieving a gross margin of 20.58% in the first half of 2024 [38][41] - The company has shown strong cost control, with a decreasing trend in operating expenses as a percentage of revenue [41]