Envicool(002837) 中泰证券·2024-10-08 01:00Investment Rating - The report assigns an "Invest Buy" rating to the company, marking its first coverage [1] Core Views - The company is a leader in precision temperature control and energy-saving solutions, benefiting from the growth in AI computing power and energy storage installations, with potential for accelerated performance expansion [7] - The company has end-to-end liquid cooling solution capabilities, with its electronic cooling products opening up new growth opportunities [4] - The report forecasts the company's net profit for 2024-2026 to be 552 million, 754 million, and 982 million yuan, respectively, with EPS of 0.75, 1.02, and 1.33 yuan [4] Financial Projections and Valuation - Revenue is projected to grow from 2,923 million yuan in 2022 to 8,469 million yuan in 2026, with a CAGR of 32% [1] - Net profit is expected to increase from 280 million yuan in 2022 to 982 million yuan in 2026, with a CAGR of 30% [1] - The P/E ratio is expected to decrease from 68.7 in 2022 to 19.6 in 2026, indicating a more attractive valuation over time [1] Industry and Market Analysis - The AI-driven demand for liquid cooling is expected to grow significantly, with the domestic liquid cooling data center market projected to exceed 100 billion yuan by 2027, with a CAGR of 76% [3] - The energy storage temperature control market is also expected to grow, with the domestic market size for liquid cooling in energy storage projected to reach 16.4 billion yuan by 2025, with liquid cooling accounting for 45% [3] - The company has delivered 900MW of liquid cooling projects as of March 2024, with its Coolinside full-chain solution covering various liquid cooling schemes [4] Company Strengths and Strategy - The company has a comprehensive product matrix and a strong customer base, including major internet companies, telecom operators, and energy storage system integrators [3] - The company has a robust R&D capability, with 1,279 R&D personnel as of the end of 2023, accounting for 33.19% of the total workforce [25] - The company has a nationwide production layout, with seven manufacturing bases and a new headquarters base in South China that began production in 2024 [26] Technological Advancements - The company has developed a full-chain liquid cooling solution, including cold plate liquid cooling, single-phase/phase-change immersion liquid cooling, and other schemes [4] - The company has also introduced the BattCool solution for the energy storage field, demonstrating its capability in end-to-end liquid cooling solutions [4] - The company is actively expanding into the electronic cooling market, with products such as GPU/CPU liquid cooling plates, server liquid cooling modules, and heat pipes [4]