Envicool(SZ:002837) Changjiang Securities·2025-04-29 10:14Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company continues to experience rapid growth in revenue and profit, with 2024 revenue reaching 4.589 billion yuan, a year-on-year increase of 30.0%, and a net profit of 453 million yuan, up 31.6% year-on-year. However, the Q1 2025 performance was impacted by the rhythm of project confirmations, with revenue of 933 million yuan, a year-on-year increase of 25.1%, but a net profit decline of 22.5% [6][12]. - The company has a historical high level of orders on hand, which is expected to support future performance growth. Inventory and contract liabilities have also increased significantly, indicating strong demand in the data center sector [12][12]. - The gross profit margin has been affected by accounting standard adjustments, but the changes are considered acceptable. The company has increased personnel investment to meet the higher demands for R&D and rapid response from international clients, which is expected to benefit long-term growth [12][12]. - The company leads the industry in liquid cooling delivery scale and has gained recognition from overseas major clients, indicating potential breakthroughs in international markets [12][12]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 45.89 billion yuan, with a net profit of 4.53 billion yuan. For Q1 2025, revenue was 9.33 billion yuan, with a net profit of 0.48 billion yuan [6][12]. - The company’s inventory increased by 500 million yuan to 1.14 billion yuan, and contract liabilities rose by nearly 200 million yuan to 370 million yuan, primarily from the data center sector [12][12]. Market Position and Strategy - The company’s liquid cooling technology revenue from data centers and computing equipment was approximately 300 million yuan in 2024. By March 2025, cumulative deliveries in the liquid cooling chain reached 1.2 GW [12][12]. - The company’s products have been validated by major players like Intel and NVIDIA, enhancing its reputation and market position [12][12]. Future Outlook - The company is expected to maintain strong revenue and profit growth through 2025-2027, with projected net profits of 650 million yuan, 880 million yuan, and 1.11 billion yuan, corresponding to year-on-year growth rates of 43%, 36%, and 26% respectively [12][12].