Company Overview - Invech Technology Co., Ltd. is located in Longhua District, Shenzhen, Guangdong Province, and was established on August 15, 2005. The company went public on December 29, 2016. Its main business includes the research, production, and sales of precision temperature control energy-saving equipment, as well as air conditioning and maintenance services for rail transit trains and traditional buses [1]. Business Segmentation - The revenue composition of Invech is as follows: 52.50% from data center temperature control energy-saving products, 36.00% from cabinet temperature control energy-saving products, 9.82% from other sources, 0.93% from rail transit train air conditioning and services, and 0.75% from bus air conditioning [1]. Stock Performance - On October 16, Invech's stock rose by 5.05%, reaching a price of 78.06 CNY per share, with a trading volume of 2.598 billion CNY and a turnover rate of 4.02%. The total market capitalization is 76.230 billion CNY [1]. Fund Holdings - According to data, one fund under Huashang Fund holds a significant position in Invech. The Huashang Value Sharing Mixed Fund (630016) held 111,100 shares in the second quarter, accounting for 3.74% of the fund's net value, making it the third-largest holding. The estimated floating profit today is approximately 416,700 CNY [2]. Fund Performance - The Huashang Value Sharing Mixed Fund (630016) was established on March 18, 2013, with a latest scale of 88.2041 million CNY. Year-to-date returns are 64.16%, ranking 319 out of 8161 in its category. Over the past year, returns are 66.69%, ranking 435 out of 8021, and since inception, the fund has achieved a return of 417.46% [2]. Fund Management - The fund manager of Huashang Value Sharing Mixed Fund (630016) is Zhang Wenlong, who has been in the position for 2 years and 75 days. The total asset size of the fund is 1.221 billion CNY, with the best return during his tenure being 73.45% and the worst being 31.27% [3].

Core Insights - As of October 16, 2023, 25 companies have released their Q3 2025 financial reports, with 23 reporting year-on-year profit growth and 18 showing revenue growth [1] - The company with the highest profit growth is Guanghua Technology, with a staggering increase of 1233.70% [1] Financial Performance Summary - **Profit Growth**: 23 companies reported profit growth, while 2 experienced declines [1] - **Revenue Growth**: 18 companies reported revenue growth, with 7 showing declines [1] - **Notable Performers**: Guanghua Technology leads with a profit of 90.39 million yuan and revenue of 2.04 billion yuan, marking a profit growth of 1233.70% and revenue growth of 11.50% [1] - **Other High Performers**: - Daoshi Technology: Profit of 415.44 million yuan, profit growth of 182.45%, revenue of 600.09 million yuan, revenue decline of 1.79% [1] - Sichuang Medical: Profit of -0.48 million yuan, profit growth of 98.32%, revenue of 60.38 million yuan, revenue growth of 6.95% [1] - Xiaogoods City: Profit of 3.46 billion yuan, profit growth of 48.45%, revenue of 13.06 billion yuan, revenue growth of 23.07% [1] Declining Performers - **Profit Declines**: Qin Chuan Technology reported a profit decline of 66.72% with a loss of 6.99 million yuan and revenue decline of 16.24% [2] - **Other Decliners**: - High Energy Environment: Profit growth of 15.18% with revenue decline of 11.28% [2] - Qifeng New Materials: Profit decline of 3.82% with revenue decline of 0.83% [2]

Group 1 - The core viewpoint is that the energy storage battery sector is experiencing significant growth, driven by new policies and market dynamics [2][3] - Energy storage battery concept stocks saw a rise in early trading, with notable increases in shares of Yangguang Electric (over 7%), Yiwei Lithium Energy (over 4%), and others [1] - The energy storage ETF also increased by approximately 2%, reflecting positive market sentiment [1] Group 2 - Analysts believe that the release of the "Document 136" at the beginning of the year marked a turning point for the energy storage industry, leading to improved profitability and demand growth [2] - The introduction of new profit models, such as capacity pricing and peak-valley arbitrage, has significantly enhanced the profitability of energy storage projects [2] - The recent planning of energy storage projects in Hebei province further strengthens the expectation of an upward trend in the industry next year [2]

Core Insights - The Social Security Fund has disclosed its stock holdings as of the end of Q3, appearing in the top ten circulating shareholders of six stocks, with a total holding of 42.76 million shares valued at 1.174 billion yuan [1][2] Group 1: Stock Holdings - The Social Security Fund has reduced its holdings in two stocks, initiated positions in three new stocks, and increased its stake in one stock [1] - The stocks with the highest holdings by the Social Security Fund are Huaxin Cement, Jiuzhou Pharmaceutical, and Jinling Mining, with holdings of 12.81 million shares, 12.70 million shares, and 8.81 million shares respectively [1][2] - Jinling Mining has the highest percentage of shares held by the Social Security Fund, accounting for 1.48% of its circulating shares, followed by Jiuzhou Pharmaceutical at 1.43% [1] Group 2: Financial Performance - Among the stocks held by the Social Security Fund, five companies reported year-on-year net profit growth in their Q3 reports, with Yuxin Electronics showing the highest increase of 60.21%, followed by Jinling Mining and Jiuzhou Pharmaceutical with increases of 47.09% and 18.51% respectively [2] Group 3: Market Performance - Since October, the average increase of the stocks heavily held by the Social Security Fund is 6.43%, outperforming the Shanghai Composite Index [3] - The stocks held by the Social Security Fund are primarily concentrated in the machinery and equipment sector, with two stocks listed in this category [2]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a strong performance in the first three quarters of 2025, achieving operating revenue of 4.026 billion yuan, a year-on-year increase of 40.19%, and a net profit attributable to shareholders of 399 million yuan, up 13.13% year-on-year [9] - The liquid cooling business is poised for growth, driven by technological advancements and partnerships with major clients like NVIDIA and Intel [9] - The company is expected to benefit from the rapid growth in data center rack scale and new energy storage installations, with projected revenues of 6.401 billion yuan, 8.710 billion yuan, and 11.923 billion yuan for 2025, 2026, and 2027 respectively [9] Financial Performance Summary - **Revenue Forecast**: - 2023A: 3.529 billion yuan - 2024A: 4.589 billion yuan - 2025E: 6.401 billion yuan - 2026E: 8.710 billion yuan - 2027E: 11.923 billion yuan - **Net Profit Forecast**: - 2023A: 344 million yuan - 2024A: 453 million yuan - 2025E: 609 million yuan - 2026E: 820 million yuan - 2027E: 1.122 billion yuan - **EPS Forecast**: - 2023A: 0.47 yuan - 2024A: 0.61 yuan - 2025E: 0.62 yuan - 2026E: 0.84 yuan - 2027E: 1.15 yuan [8][10] Market Performance - The company's stock has shown a performance of -7% over the last 12 months compared to the Shanghai Composite Index and the CSI 300 Index [4]

Core Viewpoint - The report from Guosheng Securities indicates that Invec achieved a net profit attributable to shareholders of 400 million yuan in the first three quarters of 2025, representing a year-on-year increase of 13% [1] Financial Performance - In Q3 alone, the net profit attributable to shareholders was 180 million yuan, showing a year-on-year growth of 8.4% [1] - The revenue recognition schedule may impact quarterly performance, but the overall growth trend for the year remains unchanged, with profitability improving quarter by quarter [1] Asset Management - The company's inventory reached 1.23 billion yuan, reflecting a year-on-year increase of 39%, indicating a robust order backlog and ample project reserves, which provide solid support for future performance growth [1] Market Opportunities - The overseas liquid cooling market presents significant growth potential, which is expected to drive new revenue streams for the company [1] - The previous growth was driven by energy storage, while cooling technology is becoming a crucial component of AI computing power, with energy consumption management emerging as a core issue [1] - Liquid cooling technology is anticipated to accelerate its implementation, further enhancing the company's revenue prospects [1]

Summary of Shenzhen Envicool Technology (002837.SZ) 3Q25 Earnings Call Company Overview - **Company**: Shenzhen Envicool Technology - **Stock Code**: 002837.SZ - **Market Cap**: Rmb75.5 billion / $10.6 billion - **Industry**: China Industrial Tech & Machinery Key Financial Highlights - **3Q25 Results**: - Revenue: Rmb1,453 million (+25% YoY, -15% vs. Guidance) - Gross Profit: Rmb427 million (+12% YoY, -7% vs. Guidance) - EBIT: Rmb197 million (+16% YoY, -9% vs. Guidance) - Net Income: Rmb183 million (+8% YoY, -15% vs. Guidance) - Gross Profit Margin: 29% (-1pp YoY, +2pp vs. Guidance) [1][17][15] - **Outlook for 4Q25**: - Forecasted Revenue: Rmb2,379 million (+39% YoY, +64% QoQ) - Forecasted Net Income: Rmb220 million (+120% YoY, +20% QoQ) [1][15] Core Insights - **Domestic Project Cycle**: The company experienced a longer domestic data center project deployment cycle due to uncertainties in AI chip supply, impacting revenue recognition and cash collections [1][15]. - **Order Backlog**: Inventories and contract liabilities increased by 37% and 38% YoY respectively, indicating a solid domestic order backlog [1][15][18]. - **Overseas Expansion**: Envicool is making progress in the global liquid cooling supply chain and expects significant overseas sales contributions starting in 2026 [1][16]. Strategic Developments - **Partnerships**: Envicool is recognized as one of NVIDIA's partners for supporting designs of NVIDIA's new server racks, indicating strong industry relationships [1][16]. - **Product Development**: The company has released a new in-row Coolant Distribution Unit (CDU) based on Google specifications, enhancing its product offerings [1][16]. Market Position and Growth Potential - **Market Share Goals**: Envicool aims to capture 5% of the global server liquid cooling market by 2027 and 10% by 2030, up from less than 2% in 2025 [1][16]. - **Revenue Growth Projections**: Expected sales and earnings compound annual growth rates (CAGRs) of 42% and 53% from 2025 to 2030 [1][16]. Risks and Challenges - **Competition**: The company faces risks from tougher competition in the liquid cooling market and potential margin pressures [1][25]. - **ESS Demand**: There is a risk of hiccups in energy storage system (ESS) demand growth, which could impact overall sales [1][25]. Investment Thesis - **Recommendation**: The company maintains a "Buy" rating with a 12-month price target of Rmb81.0, based on a strong growth trajectory and improving margins [1][23][25]. Conclusion Shenzhen Envicool Technology is positioned for growth in the precision cooling market, with a solid domestic order backlog and expanding overseas opportunities. However, it must navigate challenges related to project cycles and competitive pressures.

Core Insights - As of October 15, 12 companies have released their Q3 2025 reports, with 11 reporting year-on-year profit growth and 1 reporting a decline [1] - 8 companies experienced year-on-year revenue growth, while 4 reported a decline [1] - Notably, 8 companies saw both profit and revenue growth, while 1 company, Qifeng New Materials, reported declines in both metrics [1] - The company with the highest profit growth was Dao's Technology, with an increase of 182.45% [1] Summary by Category Profit Performance - Dao's Technology reported a net profit of 41,544.60 million yuan, with a year-on-year increase of 182.45% [1] - Wo Le Home reported a net profit of 13,768.02 million yuan, with a year-on-year increase of 70.92% [1] - Xiaogoods City reported a net profit of 345,731.29 million yuan, with a year-on-year increase of 48.45% [1] - Qifeng New Materials reported a net profit of 10,236.83 million yuan, with a year-on-year decrease of 3.82% [1] Revenue Performance - Dao's Technology reported revenue of 600,086.22 million yuan, with a year-on-year decrease of 1.79% [1] - Wo Le Home reported revenue of 105,508.48 million yuan, with a year-on-year increase of 2.18% [1] - Xiaogoods City reported revenue of 1,306,112.99 million yuan, with a year-on-year increase of 23.07% [1] - Qifeng New Materials reported revenue of 253,024.65 million yuan, with a year-on-year decrease of 0.83% [1]

Core Viewpoint - The demand for liquid cooling in data centers is increasing due to the rise of the computing power era, leading to steady growth in the operating performance of Invec (002837.SZ) [1][3]. Financial Performance - For the first three quarters of 2025, Invec achieved operating revenue of 4.026 billion yuan, a year-on-year increase of 40.19% [1][3]. - The net profit attributable to shareholders was 399 million yuan, up 13.13% year-on-year, while the net profit excluding non-recurring gains and losses was 384 million yuan, reflecting a 14.76% increase [1][3]. - R&D expenses reached 297 million yuan, a 31.36% increase year-on-year, accounting for 7.39% of the operating revenue during the same period [2][6]. Business Growth Drivers - The growth in revenue is primarily attributed to increased sales of energy-saving temperature control products for server rooms and cabinets [2][4]. - Invec's temperature control products serve major clients in the data center sector, including ByteDance, Tencent, Alibaba, and major telecommunications companies [4]. Market Position and Technology - Invec is recognized as a leading provider of precision temperature control solutions, with a strong focus on cooling solutions for cloud computing data centers and communication networks [3][5]. - The company has established a comprehensive R&D system and has been recognized by Intel for its cooling products, becoming a key partner in Intel's liquid cooling innovation program [5][6]. Inventory and Demand Indicators - As of September 2025, Invec's inventory reached 1.232 billion yuan, a 39.32% increase from the end of 2024, indicating strong downstream customer demand [7]. - The company's contract liabilities also increased by 42.37% to 326 million yuan, reflecting ongoing robust demand from clients [7].

October 13, 2025 04:46 PM GMT Shenzhen Envicool Technology Co Ltd | Asia Pacific M Update 3Q25 Results: Revenue in Line; Slight NP Miss Reaction to earnings Unchanged Modest shortfall Largely unchanged Impact to our thesis Financial results versus consensus Direction of next 12-month Source: Company data, Morgan Stanley Research Key Takeaways Exhibit 1: 3Q25 results summary | Rmb mn | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | 3Q25 y-y 3Q25 q-q | | 1-3Q24 | 1-3Q25 1-3Q25 YoY | | | --- | --- | --- | --- | --- | --- ...