Envicool(002837) 长江证券·2024-08-22 13:42Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company achieved revenue of 1.713 billion yuan in H1 2024, representing a year-on-year growth of 38.2%, and a net profit attributable to shareholders of 183 million yuan, up 99.6% year-on-year [3][4]. - The growth in data center cooling exceeded expectations, with energy-saving revenue from cooling reaching 860 million yuan, a year-on-year increase of 85.9% [4][5]. - The liquid cooling revenue doubled compared to H1 2023, indicating strong demand and a solid market position [5]. - The company is uniquely positioned as the only manufacturer with a full-chain layout in liquid cooling products and comprehensive coverage of industry clients [5]. Summary by Sections Financial Performance - In H1 2024, the company reported operating income of 1.713 billion yuan, a 38.2% increase year-on-year, and a net profit of 183 million yuan, reflecting a 99.6% growth [3][4]. - The second quarter of 2024 saw revenues of 967 million yuan, up 35.9% year-on-year, and a net profit of 121 million yuan, an 81.9% increase [4]. Cost Management - The company improved its expense ratio to approximately 20.1% in H1 2024, a decrease of 3.3 percentage points year-on-year, driven by enhanced platform capabilities and reduced share-based payment expenses [4]. Product Performance - The energy-saving revenue from data center cooling reached 860 million yuan, with a gross margin of 30.6%, up 1.1 percentage points year-on-year [4]. - The cabinet cooling segment generated 700 million yuan in revenue, a 6.1% increase year-on-year, with expectations for accelerated growth in H2 2024 [4][5]. Market Position - The company continues to benefit from its unique position in the liquid cooling market, with a full-chain layout and extensive client coverage, which is expected to yield significant advantages as the liquid cooling trend accelerates [5]. Future Projections - The projected net profits for 2024-2026 are 557 million yuan, 756 million yuan, and 957 million yuan, with corresponding year-on-year growth rates of 62%, 36%, and 27% [5].