Envicool(SZ:002837) KAIYUAN SECURITIES·2024-07-12 02:02Investment Rating - The investment rating for the company is "Buy" [8][28]. Core Views - The company is expected to achieve significant growth, benefiting continuously from the development of the liquid cooling industry [2][3]. - The company has established itself as a leader in the data center liquid cooling sector, recognized by major clients such as Huawei, showcasing strong competitive strength [4][9]. Financial Performance - For the first half of 2024, the company anticipates a net profit attributable to shareholders of 165-193 million yuan, with a median of 179 million yuan, representing a year-on-year growth of 95% [8]. - The expected net profit for Q2 2024 is projected to be 103-131 million yuan, with a median of 117 million yuan, indicating a year-on-year increase of 75.49% and a quarter-on-quarter growth of 89.17% [8]. - The company has a solid financial forecast, with net profits expected to reach 514 million yuan, 694 million yuan, and 947 million yuan for the years 2024, 2025, and 2026 respectively [8][10]. Business Segments - All business segments of the company are experiencing growth, particularly the energy-saving products for data center temperature control, which are expected to see significant penetration in the liquid cooling industry this year [9]. - The company has been deeply involved in precision temperature control for data centers for 15 years and has pioneered a full-chain liquid cooling solution that has been commercially scaled since 2021 [9]. Market Position - The company has delivered over 900MW of liquid cooling solutions, with a rich portfolio of product cases, positioning it well to benefit from the increasing penetration of liquid cooling technologies [8][9]. - The client base includes major players such as Huawei, ZTE, Baidu, Alibaba, Tencent, and various state-owned enterprises, indicating a robust market presence [9].