Envicool(SZ:002837) Tianfeng Securities·2025-05-09 08:45Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company achieved a revenue of 4.589 billion yuan in 2024, representing a year-on-year growth of 30.04%, and a net profit attributable to shareholders of 453 million yuan, up 31.59% year-on-year [1]. - In Q1 2025, the company reported a revenue of 933 million yuan, a year-on-year increase of 25.07%, but a net profit decline of 22.53% year-on-year to 48 million yuan [1]. - The increase in inventory levels is a concern, with inventory rising to 884 million yuan at the beginning of 2024 from 673 million yuan at the start of the year, and further increasing to 1.135 billion yuan in Q1 2025 [2]. - The company's gross margin for 2024 was 28.75%, down 3.6 percentage points from 2023, primarily due to changes in accounting policies [3]. - The company is well-positioned to benefit from the AI wave and the growing demand for liquid cooling solutions, with a cumulative delivery of 1.2 GW in the liquid cooling sector by March 2025 [4]. - The company has strong domestic partnerships with major clients like Huawei and Tencent, and is gradually making inroads into overseas markets, including a collaboration with Intel [5]. Financial Summary - The company forecasts a net profit of 640 million yuan for 2025, down from a previous estimate of 710 million yuan, with projected profits of 850 million yuan in 2026 and 1.08 billion yuan in 2027 [6]. - Revenue is expected to grow from 6.191 billion yuan in 2025 to 10.130 billion yuan in 2027, with corresponding growth rates of 34.93% and 25.78% [12]. - The company's gross margin is projected to stabilize around 29.06% in 2025, with a slight increase to 29.18% in 2026 [14].