Core Viewpoint - DuPont China Group is under investigation by the State Administration for Market Regulation for suspected violations of the Anti-Monopoly Law, which may accelerate the domestic substitution process for ion exchange resins in China [3][5]. Group 1: Company Overview - DuPont's total sales for the fiscal year 2023 reached $12.1 billion, with the Asia-Pacific region accounting for 43% of sales, while North America contributed approximately 35% [4]. - The company focuses on five major growth areas: Electronics (29%), Water Treatment (12%), Protection (21%), Industrial Technologies (28%), and Next-Generation Driving (10%) [4]. - DuPont plans to spin off its electronics business by November 1, 2025, while retaining the water treatment business within its portfolio [4]. Group 2: Market Impact - In 2023, DuPont's water treatment and protection business generated sales of $5.6 billion, with the water treatment segment contributing approximately $1.5 billion, representing 26% of the total [5]. - The water treatment business experienced a 4% year-over-year decline in 2024, primarily due to inventory destocking by distributors, but is expected to see a 7% increase in the second half of 2024 [5]. - The ongoing investigation may expedite the domestic substitution of ion exchange resins, particularly in the industrial water treatment sector, benefiting domestic leaders like Bluestar Technology and Zhengguang Co. [5]. Group 3: Industry Trends - The global market for ion exchange resins used in ultra-pure water production reached $1.34 billion in 2023 and is projected to grow to $2.3 billion by 2030, with a compound annual growth rate of 8.5% from 2024 to 2030 [6]. - The Chinese market has shown rapid growth in recent years, with domestic manufacturers like Zhengguang Co. and Bluestar Technology pushing for high-end ion exchange resin substitution [6]. - Ultra-pure water treatment resins are critical in high-end markets such as semiconductors and nuclear industries, where the purity of ultra-pure water directly impacts product quality and yield [6].

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [1] Core Viewpoints - DuPont is under investigation for antitrust violations in China, which may accelerate the domestic substitution process for ion exchange resins [5] - DuPont's sales in the Asia-Pacific region account for 43% of its total sales, with significant contributions from electronic and water treatment sectors [4] - The water treatment and protection business of DuPont generated sales of $5.6 billion in 2023, with a slight decline expected in 2024 [5] - The investigation could benefit domestic leaders in ion exchange resins, such as Bluestar Technology and Zhengguang Co., as they may capture market share previously held by DuPont [5][6] Summary by Sections Industry Overview - The global market for ion exchange resins used in ultra-pure water production reached $1.34 billion in 2023 and is projected to grow to $2.3 billion by 2030, with a CAGR of 8.5% from 2024 to 2030 [6] Company Insights - DuPont plans to spin off its electronic business by November 2025, while retaining its water treatment business [4] - The water treatment business's sales are expected to decline slightly in 2024 but show growth in the second half of the year [5] Market Dynamics - The antitrust investigation may catalyze the domestic production of ion exchange resins, particularly in industrial water treatment [5] - Domestic manufacturers are actively pursuing high-end applications in sectors like semiconductors and nuclear industries [6]