Envicool(SZ:002837) Guotai Junan Securities·2024-08-13 05:23Investment Rating - The report maintains a "Buy" rating for the company, which is a leader in the domestic temperature control sector, with a target price of 28.57 CNY [3][4]. Core Viewpoints - The company's performance in H1 2024 met expectations, with rapid growth in data center temperature control and a slowdown in cabinet temperature control. Revenue from liquid cooling technology is also growing rapidly, indicating steady growth prospects [2][3]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 1.713 billion CNY, a year-on-year increase of 38.24%, and a net profit attributable to shareholders of 183 million CNY, up 99.63%. The net profit excluding non-recurring items was 171 million CNY, reflecting a 113.50% increase [3]. - In Q2 2024, revenue reached 967 million CNY, a 35.92% year-on-year increase, with a net profit of 121 million CNY, up 81.86% [3]. Business Segments - The data center temperature control segment generated revenue of 856 million CNY in H1 2024, a significant year-on-year increase of 85.91%, driven by strong demand and the company's solid industry position [3]. - The cabinet temperature control segment reported revenue of 702 million CNY, a modest increase of 6.11%, primarily due to a slowdown in energy storage-related business [3]. - The rail transit air conditioning segment achieved revenue of 48 million CNY, up 35.88%, while the bus air conditioning segment saw revenue of 28 million CNY, a 42.35% increase [3]. Liquid Cooling Technology - The company has made long-term investments in liquid cooling technologies, launching products such as the Coolinside liquid cooling cabinet and comprehensive solutions for data centers. Revenue from liquid cooling technology in H1 2024 was approximately double that of H1 2023 [3].