Group 1 - The liquid cooling server concept has gained traction, leading to a significant increase in stock prices for related companies [1] - Shunling Environment saw its stock price rise by over 15% [1] - Other companies such as Dayuan Pump Industry and Xinpeng Co. reached their daily limit up, while Feirongda and Langwei Co. also experienced price increases [1]

Core Viewpoint - Liquid cooling technology is expanding beyond GPU servers to network devices and ASIC chips, driven by the scaling of AI clusters and a shift in market perception towards a revaluation of the liquid cooling industry [1][2][3] Group 1: Reasons for the Surge in Liquid Cooling - Liquid cooling technology is gaining traction as it is no longer limited to GPU servers, with potential applications in network devices and ASIC chips [2] - Recent developments include Broadcom introducing liquid cooling in switch devices, AMD emphasizing liquid cooling in its MI350 series, and Taiwanese cooling leaders predicting a rapid increase in water cooling adoption over the next two years [2] - The industry is transitioning from conceptual discussions to tangible implementations, with changes in revenue structures, customer bases, and production expansions expected [2] Group 2: Market Dynamics and Future Prospects - The market is at a tipping point where the recognition of liquid cooling trends is leading to significant market reactions, driven by increasing power consumption and the diversification of AI clusters [3] - The power consumption of systems like NVL72 has reached 120kW, surpassing the limits of air cooling systems, prompting a shift towards liquid cooling [3] - Major companies such as Meta, Google, and Amazon are advancing their AI architectures, which will likely include liquid cooling systems in the future [3] Group 3: Competitive Landscape and Strategic Considerations - The core competitive issue in the liquid cooling industry revolves around the ability to avoid "internal competition" and maintain a strong competitive edge [4] - Chip manufacturers may prefer decoupled solutions to reduce costs and improve installation efficiency, while cloud providers favor integrated delivery models for stability and operational efficiency [4] - Companies with robust system integration capabilities, including cold plates, CDU, UQD, cooling liquids, redundancy control, and engineering implementation, are likely to become preferred partners for major cloud service providers [4] Group 4: Investment Recommendations - Core recommendation includes Invec (002837) for its system capabilities and international expansion potential [5] - Other companies to watch include Dongyangguang (600673), Shuguang Shuchuang (872808), Shenling Environment (301018), and Gaolan Co. (300499) [5][6]

Group 1 - The liquid cooling server concept stocks experienced a significant surge in the afternoon trading session on August 8, with multiple companies hitting their daily price limit [1] - Huaguang New Material and Feilong Co., Ltd. both reached the daily limit up, indicating strong investor interest [1] - Other companies such as Yingweike, Qiangrui Technology, and Yimikang saw their stock prices increase by over 10%, while Zhongshi Technology, Shenling Environment, Rihai Intelligent, and Chunzong Technology rose by more than 5% [1]

Group 1 - Huaguang New Materials and Feilong Co., Ltd. both hit the daily limit up in the afternoon trading session [1] - In previous trading, Yingweike also reached the daily limit up, while Qiangrui Technology and Yimikang surged over 10% [1] - Other companies such as Zhongshi Technology, Shenling Environment, Rihai Intelligent, and Chunz中 Technology saw increases of over 5% [1]

Summary of Conference Call for Shining Environment Industry Overview - The overseas liquid cooling market is significantly larger than the domestic market, approximately three times the size, with higher profit margins. This presents a substantial opportunity for domestic manufacturers to enhance profitability and growth potential [2][4] - From 2025, the demand for ASICs in liquid cooling is expected to grow rapidly, with shipments projected to exceed GPUs by 2026. By 2027, the demand scale for liquid cooling is anticipated to reach the same level as GPUs, estimated at 53-55 billion yuan, accelerating market development [2][4] Key Companies Mentioned - **Inwin**: Recognized as the industry leader, collaborating with major international companies such as NV, Intel, and AMD. The company has significant market presence both domestically and internationally, with substantial profit and market value elasticity once the overseas market opens [5][6] - **Shining Environment**: Positioned as the second player in the liquid cooling market, showing signs of a performance inflection point and beginning to expand overseas. The company has deep collaborations with major firms like Huawei, ByteDance, Tencent, and Alibaba, benefiting from domestic computing power investments [2][7] - **Kexin Yuan**: A smaller market cap company whose products have penetrated leading Taiwanese cooling component manufacturers. The company is expected to achieve profits of 180 million yuan by 2026, indicating significant growth potential [2][7] Financial Performance - Shining Environment's data center business is projected to grow by 75% year-on-year in 2024, accounting for 51% of total revenue. New orders have nearly doubled, indicating strong demand [2][11] - The company’s order growth rate reached 95%, with new production facilities expected to significantly enhance supply capacity and accelerate revenue growth [7][13] Competitive Advantages - Shining Environment possesses a competitive edge in the liquid cooling sector due to its project experience, customer certifications, and operational capabilities. The company is well-positioned to leverage its first-mover advantage [11] - The company’s product offerings include precision air conditioning, indirect evaporative cooling units, and complete liquid cooling system solutions, which are well-recognized by major IDC manufacturers [10] Future Outlook - The new factory's production capacity and digital management improvements are expected to enhance overall profitability, marking a turning point for rapid growth in the company's performance [3][13] - Beyond data centers, Shining Environment's industrial specialty business is also expected to see optimistic growth due to national investments in power-related projects, including hydropower and offshore wind energy [12] Market Dynamics - The primary drivers for the growth of liquid cooling technology are the expansion into overseas markets and collaborations with large international clients. Shining Environment is making significant progress in Southeast Asia, particularly in AI computing centers [9]

Core Insights - The rapid growth in AI computing power is driving the demand for advanced cooling solutions, with liquid cooling becoming a necessary standard due to the limitations of traditional air cooling systems [1][14] - The period from 2025 to 2027 is identified as a critical window for technology penetration and performance realization in the liquid cooling market [1][14] Group 1: Cooling Demand and Technology Trends - The demand for cooling solutions is increasing due to the exponential growth in computing power driven by AI technologies, leading to significant rises in chip thermal design power [2][11] - Traditional air cooling is inadequate for high-power density data centers, with liquid cooling expected to see increased penetration as a result of its superior thermal management capabilities [5][12] - The cooling methods for data centers vary based on power density, with air cooling suitable for low-density centers and liquid cooling becoming essential for high-density environments [6] Group 2: Market Growth and Projections - The global data center capacity using liquid cooling is projected to increase significantly, with net additions expected to reach 2.82 GW by 2025 and 9.10 GW by 2028, reflecting a compound annual growth rate (CAGR) of 47.78% [11] - The liquid cooling market in China is forecasted to grow from 149.8 billion yuan to 347.4 billion yuan between 2025 and 2027, with an overall CAGR of 52.3% [12][14] - The market for newly constructed liquid cooling systems is expected to grow from 11.69 billion yuan in 2025 to 30.51 billion yuan by 2027, with a CAGR of 61.6% [12] Group 3: Industry Ecosystem - The liquid cooling industry ecosystem includes upstream component suppliers, midstream IT equipment manufacturers, and downstream users such as telecom operators and third-party IDC service providers [8] - Key components in the liquid cooling supply chain include quick disconnects, cooling distribution units, and various cooling liquids and systems [8] Group 4: Investment Opportunities - Companies such as Inspur (曙光数创), High Cloud (高澜股份), and others are positioned to benefit from the growth in the liquid cooling market, driven by the increasing demand for efficient cooling solutions in data centers [14]

Market Performance - Chengfei concept stock rose by 1.74%, ranking 10th in the concept sector's increase, with 34 stocks rising overall [1] - Leading gainers in the sector included Huami New Materials, Aileda, and *ST Xinyan, with increases of 12.41%, 6.81%, and 6.15% respectively [1] - The largest declines were seen in Tongda Co., Chuanhuan Technology, and Duopule, with decreases of 1.93%, 1.34%, and 1.08% respectively [1] Concept Sector Overview - The top-performing concept sectors today included: - Armament Reorganization Concept: +6.12% - PEEK Materials: +4.11% - Brain-Computer Interface: +2.72% - Copper Cable High-Speed Connection: +2.60% - Automotive Thermal Management: +1.89% - Chengfei Concept: +1.74% [2] Fund Flow Analysis - Chengfei concept saw a net outflow of 5.97 billion yuan from main funds, with 16 stocks experiencing net inflows [2] - The top net inflow stock was Shenling Environment, with a net inflow of 56.89 million yuan, followed by Xiling Power and AVIC Chengfei with 37.56 million yuan and 25.01 million yuan respectively [2][3] - The net inflow ratios for leading stocks included Shenling Environment at 13.01%, *ST Xinyan at 9.50%, and Xiling Power at 3.90% [3] Individual Stock Performance - Key stocks in the Chengfei concept included: - Shenling Environment: +1.03%, turnover rate 4.74%, net inflow 56.89 million yuan, net inflow ratio 13.01% [3] - Xiling Power: +2.75%, turnover rate 18.08%, net inflow 37.56 million yuan, net inflow ratio 3.90% [3] - AVIC Chengfei: +0.43%, turnover rate 2.14%, net inflow 25.01 million yuan, net inflow ratio 2.32% [3]

Group 1 - The core viewpoint is that the AI industry is experiencing a "investment-growth-reinvestment" cycle, with significant Capex increases from major overseas companies [1] - Major CSP companies reported a substantial increase in AI cloud business growth, with combined Capex from Microsoft, Google, Meta, and Amazon reaching $96.1 billion in Q2 2025, a year-on-year increase of 66% [1] - The liquid cooling market is expected to grow rapidly, driven by the demand for NVIDIA GPUs and self-developed ASIC chips from major cloud providers, with projected market sizes of approximately 35.4 billion, 71.6 billion, and 108.2 billion yuan for 2025, 2026, and 2027 respectively [1][7] Group 2 - Vertiv reported Q2 2025 revenue of $2.638 billion, a year-on-year increase of 35%, exceeding market expectations by 12%, driven by strong data center demand [2] - Adjusted EPS for Vertiv was $0.95, surpassing consensus estimates by 14%, with organic orders increasing by 15% year-on-year and 11% quarter-on-quarter [2] - Vertiv's revenue growth guidance for 2025 has been raised to a midpoint of 24%, up from a previous estimate of 18% [2] Group 3 - The liquid cooling penetration rate is accelerating due to the design of integrated cabinet products, with significant demand from NVIDIA's GPUs and cloud providers' ASIC chips [3] - NVIDIA's B series chips are expected to drive liquid cooling demand significantly, with projected liquid cooling values of approximately $2.282 billion, $5.5 billion, and $7.7 billion for 2025, 2026, and 2027 respectively [4][7] - The ASIC chip market is projected to grow rapidly, with a compound annual growth rate of 65% from 2024 to 2027, and expected liquid cooling demand of approximately $2.7 billion, $4.5 billion, and $7.4 billion for 2025, 2026, and 2027 respectively [6][7]

金融界消息 截至2025年8月4日收盘，申菱环境（301018）报收于45.8元，上涨2.69%，换手率4.37%， 成交量8.69万手，成交金额3.92亿元。 资金流向方面，今日主力资金净流入3329.35万元，占比成交额8.5%。其中，超大单净流入2398.36万 元、占成交额6.12%，大单净流入930.99万元、占成交额2.38%，中单净流出流出1518.83万元、占成交 额3.88%，小单净流出1810.51万元、占成交额4.62%。 申菱环境最新一期业绩显示，截至2025一季报，公司营业总收入6.28亿元、同比增长27.18%，归属净利 润5413.52万元，同比增长7.34%，扣非净利润5405.30万元，同比增长4.54%，流动比率1.639、速动比率 1.226、资产负债率51.64%。 天眼查商业履历信息显示，广东申菱环境系统股份有限公司，成立于2000年，位于佛山市，是一家以从 事专用设备制造业为主的企业。企业注册资本26605.2564万人民币，实缴资本26605.2564万人民币。公 司法定代表人为崔颖琦。 通过天眼查大数据分析，广东申菱环境系统股份有限公司共对外投资了18家企业，参 ...

Investment Rating - The report maintains a "Recommended" rating for the electric power equipment sector [4][15]. Core Viewpoints - The increase in capital expenditures (CapEx) by major overseas tech companies such as Google, Meta, Microsoft, and Amazon validates the high prosperity of the AI and computing power industry, indicating a long-term growth opportunity in the computing infrastructure sector [12][13][14]. - The urgency for domestic computing power autonomy is highlighted by the recent security issues surrounding NVIDIA chips, which may accelerate the development of domestic chip manufacturers [14]. Summary by Sections Investment Insights - The report emphasizes that the power generation sector remains a logical choice for both volume and profit growth, recommending companies like Weichai Heavy Machinery, and also suggests focusing on the gradually increasing penetration of HVDC segments with companies like Kehua Data, Hewei Electric, and Tonghe Technology [4][14]. - It also highlights the benefits for server power supplies and liquid cooling segments, recommending companies such as Invec, Shenling Environment, and Oulu Tong [4][14]. Industry Dynamics - The report notes that major tech companies have collectively raised their 2025 capital expenditure plans, reflecting sustained demand for computing power driven by AI [12][13]. - It mentions that the domestic computing power industry is expected to see accelerated growth due to increased focus on data security and core technology autonomy [14]. Key Companies and Earnings Forecast - The report provides a table of key companies with their earnings per share (EPS) and price-to-earnings (PE) ratios, indicating a bullish outlook for companies like Magpower and Shenling Environment, which are rated as "Buy" [16][17].