Envicool(SZ:002837) Haitong Securities·2024-07-02 03:01Investment Rating - The report assigns an "Outperform" rating to the company [2]. Core Insights - The company is positioned to benefit from the growing trend of liquid cooling in energy storage systems, which is expected to enhance performance and lifespan of battery systems [5]. - The projected earnings per share (EPS) for 2024-2026 are estimated at 0.75, 0.94, and 1.11 yuan respectively, with a price-to-earnings (PE) ratio of 35-40 times for 2024, leading to a fair value range of 26.40-30.17 yuan per share [6]. Summary by Sections Business Overview - The company is a leading provider of precision temperature control energy-saving solutions, with major business segments including data center temperature control, cabinet temperature control, bus air conditioning, and rail transit air conditioning services [10]. Revenue Growth - The core business segments of data center and cabinet temperature control are experiencing revenue growth, with significant contributions from energy storage temperature control [11]. Financial Performance - The company’s revenue is projected to grow significantly, with total revenue expected to reach 4,709.89 million yuan in 2026, reflecting a growth rate of 30.82% [28]. - The gross profit margin for various segments in 2023 is reported as follows: data center temperature control at 31.53%, cabinet temperature control at 32.16%, rail transit air conditioning at 39.66%, and new energy vehicle air conditioning at 39.39% [39]. Market Trends - The energy storage market is expanding, with a projected market size of 109.8 billion yuan by 2024, driven by the increasing adoption of liquid cooling technology [57]. - The report highlights a shift from air cooling to liquid cooling in large energy storage systems, indicating a trend that could enhance the company's market position [59]. R&D and Innovation - The company maintains a strong focus on R&D, with a research and development expense ratio of 6%-8% from 2019 to 2023, indicating a commitment to innovation and product development [25]. - Key R&D projects include the development of high-efficiency cooling systems and energy-saving control algorithms, which are expected to enhance product competitiveness [26]. Competitive Advantage - The company has established a comprehensive product development system and a strong market presence in liquid cooling solutions, which is expected to provide a competitive edge in the industry [43].