[Click eStock] Hansung Cleantech, Essential 'Ultra Pure Water' for HBM... Expectations for Benefits from Semiconductor Localization Policies

On May 7, independent research firm Value Finder analyzed Hansung Cleantech, stating that one of the most important factors in semiconductor high-bandwidth memory (HBM) is "ultra pure water," and that attention should be paid to expectations for benefits from the upcoming ruling and opposition presidential candidates' policies on semiconductor localization.

Hansung Cleantech, which was listed on the KOSDAQ market in 2003, is a specialized company in ultra pure water (Ultra Pure Water) and water treatment facility EPC. It is a leading company carrying out a national project for the localization of ultra pure water that has been ongoing for over four years.

Lee Choongheon, a researcher at Value Finder, stated, "It is positive that news about presidential candidates' support for semiconductor policies continues to emerge with just one month left before the election." He also analyzed, "Ultra pure water is one of the most important elements in semiconductor HBM, but it is not yet widely recognized, so it may attract more attention in the future."

The researcher explained, "The company is divided into Hansung Cleantech, which operates the water treatment EPC business; EN Water, which operates the environmental facility O&M business; and EN Water Solution and EClean Water, which operate liquid designated waste treatment and recycling businesses." He added, "From 2020 to 2023, the company consistently recorded operating profits. However, last year, due to a downturn in downstream industries and reduced investments, as well as construction suspensions, the company suffered large-scale losses."

However, reflecting recent business and order conditions, there is an analysis that a performance turnaround is expected this year. He said, "Construction is underway for SK Hynix's M15x ph-3 WWT system water treatment facility and Samsung Electronics' P4 water treatment facility. Bidding for the Yongin semiconductor cluster is expected within the first half of the year, and the company is planning to participate in the selection of companies for the second national project for ultra pure water localization in the first half of next year."

According to data from a global market research firm, the global ultra pure water market is expected to grow at an average annual rate of 2.7%, from 29.7 trillion won in 2022 to 47.6 trillion won in 2040. Currently, Japan holds a high market share in the global ultra pure water market, and the three major Japanese water treatment companies?Kurita, Organo, and Nomura?hold 200, 69, and 73 patents respectively, accounting for 66% of the global total.

Among them, Nomura and Kurita are conducting water treatment EPC business with Samsung Electronics and SK Hynix. However, in the past, domestic semiconductor companies suffered damage due to events such as the Korea-Japan trade dispute, so the need for localization is expected to increase, and Hansung Cleantech's water treatment technology is also anticipated to draw attention.

Additionally, the researcher noted, "Hansung Cleantech's major shareholders announced a plan to purchase a 2% stake over about a month, from May 9 to June 7. They also increased their stake through on-market purchases in April," adding, "This demonstrates the major shareholders' intention to support the share price."