COOLTECH POWER(SZ:300153) Tianfeng Securities·2025-06-05 11:20Investment Rating - The report initiates coverage with a "Buy" rating for the company, targeting a price of 38.81 CNY based on a 2025 PE of 45X [4][6]. Core Insights - The company is positioned as a leader in the generator set industry, capitalizing on opportunities arising from the growth of data centers and the overall demand for power equipment [2][3]. - The company has established a business structure centered around power equipment, with energy conservation and renewable energy as supplementary wings, indicating a diversified approach to market opportunities [1][11]. Summary by Sections Business Structure and Growth - The company focuses on power equipment as its core business while expanding into energy conservation and renewable energy sectors, achieving significant growth in revenue and profitability [1][13][15]. - The revenue from environmentally friendly low-noise diesel generator sets is projected to increase significantly, reflecting the company's strong market position and product demand [53][54]. Market Opportunities - The global power equipment market is expected to grow from approximately 500 billion USD in 2022 to over 700 billion USD by 2025, driven by increasing energy demands and technological advancements [10][32]. - In China, the power equipment market is projected to exceed 200 billion USD by 2025, supported by favorable policies and accelerated grid investments [35][38]. Data Center Growth - The rapid development of data centers is driving demand for high-power diesel generators, with the Chinese data center market expected to grow from 878 billion CNY in 2019 to 3048 billion CNY in 2024, reflecting a CAGR of 28.3% [42][44]. - Major tech companies are significantly investing in AI data centers, further increasing the demand for reliable backup power solutions [43][44]. Competitive Advantages - The company leverages its supply chain and brand advantages, including a strategic partnership with MTU, to enhance its market position and pricing power in the high-end diesel generator market [48][49]. - With over 20 years of manufacturing experience, the company has built a strong reputation and customer base, particularly in high-demand sectors such as telecommunications and data centers [50][51]. Financial Projections - The company forecasts total revenues of 21.25 billion CNY, 27.73 billion CNY, and 35.73 billion CNY for 2025, 2026, and 2027 respectively, with corresponding net profits of 2.76 billion CNY, 3.76 billion CNY, and 4.75 billion CNY, indicating substantial growth [4][54].