Water purification and metal products dual engine KEMFLO Industries sprinting towards global expansion.
Taipei, February 7, 2025
KEMFLO (stock code: 7818) will be listed on the emerging stock market on the 7th at a price of 90 NT dollars per share. With over forty years of industry experience, the company has become a leading brand in the global fields of water purification, metal manufacturing, and industrial water treatment; its diversified business scope covers residential and commercial water purification, industrial water purification, and lifestyle and leisure ventures, and it has established operational centers in major markets worldwide.
The group's CEO Lin Yu-Chun stated that KEMFLO's core business is divided into three major areas: water purification products, metal products, and industrial water treatment systems, with production bases located in Taiwan, the United States, Australia, China, and Thailand. Water purification products include RO systems, countertop water purifiers, and commercial high-flow filtration systems, applied in residential, commercial, and industrial settings. The metal business specializes in the design and development of high-spec vehicle-mounted equipment and multifunctional furniture, with clients including well-known companies from the United States, Japan, Europe, and China; while industrial water treatment targets high-standard industries such as electronics semiconductors and food processing, providing comprehensive purification and recycling solutions.
KEMFLO's core advantages lie in "technological innovation" and "highly vertically integrated production chain." The company employs a Turn-Key design concept that spans all aspects from product development to mass production, possessing a complete production system that includes injection molding, high-precision filter media production, and automated assembly. In addition, its industrial water treatment business combines BIM modular technology with ESG activated carbon regeneration solutions, making it highly competitive globally.
According to statistics, KEMFLO accounts for over 46% of the water purification product export market in Taiwan and has successfully sold products to North America, Asia, and Europe, almost encompassing the OEM/ODM market of the top five global water purification product brands. KEMFLO's main sources of revenue are water purification products and metal products. As of the first half of 2024, the revenue share of water resource products reached 64.74% (household 56.72%, industrial 8.02%), while metal products accounted for 35.25%. In terms of regional revenue, the Americas contributed 59.82% in the first half of 2024, Asia contributed 26.81%, and Taiwan and other regions accounted for 13.36%; the market is diversified and revenue is stable.
According to research firm Fortune Business Insights, the global water purifier market size was USD 32.65 billion in 2023, and it is expected to grow from USD 35.01 billion in 2024 to USD 62.88 billion by 2032, with a compound annual growth rate of 7.6% during the forecast period. The Asia-Pacific region dominates the water purifier market, holding a market share of 38.99% in 2023 and continuing to grow, which also boosts KEMFLO's operational momentum. Additionally, the market for metal products and outdoor goods is projected to grow from USD 70.2 billion in 2023 to USD 129.1 billion by 2032, with a compound annual growth rate of 7%. Both the water purifier and metal products markets have potential. This has led to KEMFLO's impressive operational performance over the past three years, with revenue surpassing NT$ 12 billion in 2023, an increase of approximately 7.5% compared to 2022. In the same year, the net profit margin rose from 4% in 2022 to 6%, and the first half of 2024 maintained at 10%; EPS also increased from NT$ 3.94 in 2022 to NT$ 4.61 in the first half of 2024.
Looking to the future, Lin Yujun stated that the company will continue to enhance operational efficiency through four major strategies: "forward-looking innovative technology," "integrated solutions," "expanding new markets," and "innovative circular economy." In terms of technology upgrades, the company will promote self-manufactured RO membranes for industrial use and integrate products into IoT applications, while strengthening ESG-related applications to enhance market competitiveness. Regarding market expansion, the focus will be on deepening efforts in the North American, Southeast Asian, and Taiwanese markets, concentrating on the demand for high-end industrial water treatment and upgraded water purification products. In the area of circular economy, the plan is to combine material regeneration with carbon emission management to help enterprises more effectively manage their carbon footprints and promote innovative markets for the circular economy.
