Envicool(SZ:002837) Zhongyuan Securities·2024-08-20 12:13Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [1][14]. Core Views - The company has experienced significant growth in its data center cooling and energy storage temperature control businesses, driven by advancements in AI and increasing demand in the data center sector [3][4]. - The company reported a total revenue of 1.713 billion yuan for the first half of 2024, representing a year-on-year increase of 38.24%, with a net profit attributable to shareholders of 183 million yuan, up 99.63% year-on-year [1][4]. - The company is recognized as a leading provider of precision temperature control solutions, focusing on cooling solutions for cloud computing data centers, power grid systems, and energy storage applications [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved total revenue of 1.713 billion yuan, with a year-on-year growth of 38.24% [1]. - The net profit attributable to shareholders reached 183 million yuan, marking a 99.63% increase year-on-year, while the non-recurring net profit was 171 million yuan, up 113.50% [1][4]. - The company's gross margin for the first half of 2024 was 30.99%, with a slight decline of 1.05 percentage points compared to the previous year [1][4]. Business Segments - The data center cooling business generated revenue of 856 million yuan, a substantial increase of 85.91%, accounting for 49.96% of total revenue [1][3]. - The cabinet cooling business reported revenue of 702 million yuan, growing by 6.11% and representing 40.97% of total revenue [1][3]. - Revenue from energy storage applications was approximately 600 million yuan, reflecting an 11% year-on-year growth [1][3]. Future Outlook - The company is expected to benefit from the ongoing growth in AI computing and energy storage sectors, with projected revenues of 4.804 billion yuan, 6.365 billion yuan, and 8.119 billion yuan for 2024, 2025, and 2026, respectively [4][5]. - The forecasted net profits for the same years are 513 million yuan, 682 million yuan, and 892 million yuan, indicating strong growth potential [4][5]. - The company maintains a robust market position with a focus on innovative cooling technologies, including liquid cooling solutions, which are gaining traction in the industry [3][4].