Envicool(SZ:002837) ZHONGTAI SECURITIES·2024-10-27 08:16Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% against the benchmark index in the next 6 to 12 months [8]. Core Insights - The company has experienced significant revenue growth, with a 38.61% year-on-year increase in revenue for the first three quarters of 2024, reaching 2.872 billion yuan, and a 67.79% increase in net profit attributable to shareholders, amounting to 353 million yuan [2][3]. - The company is positioned to benefit from the rapid growth in liquid cooling technology driven by AI developments, with a projected doubling of related revenue in the first half of 2024 compared to the previous year [1]. - The company has successfully secured large liquid cooling projects in Southeast Asia and has been recognized for its advanced cooling solutions validated by major tech firms like Intel [1]. Financial Performance Summary - The company's revenue is projected to grow from 3.529 billion yuan in 2023 to 4.746 billion yuan in 2024, representing a 35% growth rate [2]. - Net profit attributable to shareholders is expected to increase from 344 million yuan in 2023 to 552 million yuan in 2024, reflecting a 60% growth rate [2]. - The company's earnings per share (EPS) is forecasted to rise from 0.61 yuan in 2023 to 0.75 yuan in 2024 [2][3]. Operational Efficiency - The company has maintained a stable gross margin of approximately 31.73% for the first three quarters of 2024, with a slight decrease of 0.9 percentage points year-on-year [3]. - The operating expense ratio has improved, decreasing to 18.88% in the first three quarters of 2024, down 2.97 percentage points year-on-year [3]. - The net profit margin has increased to 12.25%, up 1.89 percentage points year-on-year, indicating enhanced profitability [3]. Market Position and Growth Potential - The company is recognized as a leading provider of precision temperature control and energy-saving solutions, with a comprehensive liquid cooling solution capability [3]. - The expansion into electronic cooling products is expected to further enhance growth opportunities, particularly in the context of increasing AI computing power and energy storage installations [3].