Chuanhuan Technology(300547) 东兴证券·2024-12-27 08:53Investment Rating - The report maintains a "Recommend" rating for the company, reflecting a positive outlook on its future growth prospects [3][9] Core Views - The company has secured a significant order for liquid cooling pipeline systems for servers, marking a successful expansion into new business areas such as data centers and energy storage [1] - The company's liquid cooling pipeline systems have achieved V0 standards and obtained UL certification, positioning it well in the growing data center market [1] - The global demand for AI computing power is expected to increase significantly, with AI computing power projected to reach 105 ZFLOPS by 2030, 500 times the level of 2020 [1] - The company's diversified product portfolio and strong cost control capabilities have enabled it to maintain a gross margin above 25% and a net profit margin of 15.76% in the first three quarters of 2024 [2] - The company has successfully expanded its customer base in the automotive, energy storage, and data center sectors, including partnerships with major players like Huawei and BYD [2] Financial Performance and Projections - The company's revenue is expected to grow from 907 million yuan in 2022 to 2,344.36 million yuan in 2026, with a compound annual growth rate (CAGR) of 27.49% [5] - Net profit attributable to the parent company is projected to increase from 122.42 million yuan in 2022 to 334.84 million yuan in 2026, with a CAGR of 27.38% [5] - The company's gross margin and net margin are expected to remain stable, with gross margins around 26% and net margins around 14% from 2024 to 2026 [18] - The company's ROE is forecasted to improve from 12.28% in 2022 to 22.19% in 2026, reflecting strong profitability and efficient capital utilization [18] Business Expansion and Market Opportunities - The company has entered the supply chains of several key players in the liquid cooling server market, including Xunqiang, Xingqihong, and Envicool [2] - In the automotive sector, the company has secured orders for pipeline systems in new models such as the Huawei-JAC collaboration's Zunjie and Zhijie [2] - The company has also expanded into the energy storage sector, supplying pipeline products to major clients like Guoxuan High-Tech and BYD [2] Valuation Metrics - The company's PE ratio is expected to decline from 36.04 in 2022 to 13.18 in 2026, indicating improving valuation attractiveness [18] - The PB ratio is projected to decrease from 4.42 in 2022 to 2.92 in 2026, reflecting a more favorable valuation relative to book value [18] - The EV/EBITDA ratio is forecasted to drop from 22.87 in 2022 to 10.28 in 2026, suggesting a more attractive enterprise value relative to earnings [18]