东兴证券：东兴晨报-20241031

Core Viewpoints - The report highlights the promising market prospects for Chuanhuan Technology (300547.SZ) in the liquid cooling pipeline sector, driven by strong self-research capabilities and cost control, which are expected to yield excess growth [1][3]. Summary by Sections Company Overview - Chuanhuan Technology is a leading domestic supplier of automotive pipeline assemblies, focusing on the research, production, and sales of rubber and plastic pipelines since its establishment in 2016. The company has consistently been recognized as one of China's top ten rubber hose enterprises for over a decade [1]. - In 2023, the company achieved revenue of 1.109 billion yuan, representing a year-on-year growth of 22.3%, with a further increase of 39.1% in the first half of 2024 [1]. Market Opportunities - The automotive pipeline market is expected to grow due to stricter emission regulations, necessitating the development of more durable and low-permeability pipeline materials. The market for rubber and plastic pipelines in the thermal management segment of automobiles is projected to reach 15.1 billion yuan in 2024 [2]. - The demand for liquid cooling systems in energy storage and data centers is anticipated to open new avenues for the pipeline industry. The market for cooling pipelines in energy storage liquid cooling systems is expected to approach 4.5 billion yuan by 2028 [2]. Investment Highlights - The company possesses strong self-research capabilities and has been actively investing in the development of new materials and processes since the 1990s. Its proprietary nylon pipeline assembly components demonstrate its research strength [3]. - Chuanhuan Technology has maintained a gross margin of over 25% since 2018, outperforming its peers in the industry. The company's ability to control costs and expenses has resulted in a steady improvement in profitability, with a net profit margin increasing from 13.5% in 2021 to 14.6% in 2023 [3][7]. Financial Projections - The company is expected to achieve revenues of 1.45 billion yuan, 1.84 billion yuan, and 2.34 billion yuan for the years 2024 to 2026, reflecting growth rates of 30.9%, 26.7%, and 27.5% respectively. The projected gross margins for the same period are 25.9%, 26.0%, and 26.2% [7]. - The forecasted net profits for 2024, 2025, and 2026 are 210 million yuan, 260 million yuan, and 330 million yuan, corresponding to earnings per share (EPS) of 0.96 yuan, 1.21 yuan, and 1.54 yuan [7]. Conclusion - The report maintains a positive outlook on the pipeline industry and recommends Chuanhuan Technology for its strong research capabilities and cost control, anticipating continued excess growth in the future [7].