Changjiang Securities·2026-02-25 01:11Investment Rating - The report maintains a "Positive" investment rating for the industry [11]. Core Insights - The year 2025 marks a significant milestone for liquid cooling, with major manufacturers achieving substantial revenue growth and profitability due to the scale of liquid cooling product shipments [3][5]. - The AI wave, combined with the initial volume of liquid cooling, has led to record-high revenues for cooling-related manufacturers in Taiwan and Europe, with a notable increase in the proportion of liquid cooling-related income [30]. - The focus for 2026 will shift towards system integration, with major manufacturers expanding production capacity and emphasizing the need for complete solutions rather than just supply capabilities [6][32]. Summary by Sections Financial Overview - In 2025, AVC (奇鋐) achieved a revenue of 139.6 billion NTD, a 95% year-on-year increase, marking a historic high. The revenue for Q4 2025 was 47.8 billion NTD, up 129% year-on-year [16]. - Auras (双鸿) reported a revenue of 23.3 billion NTD for 2025, a 48% increase, with liquid cooling revenue accounting for over 30% of total income [18]. - Delta (台达电) reached a revenue of 554.9 billion NTD in 2025, a 32% increase, driven by the growth of liquid cooling products [24]. - Vertiv (维谛) generated a revenue of 10.23 billion USD in 2025, reflecting a 28% year-on-year growth, with significant contributions from the US market [28]. 2026 Outlook - The liquid cooling market is expected to continue its growth trajectory, with major manufacturers indicating that order visibility has extended to 2028 [6][32]. - The primary growth driver for liquid cooling in 2026 will be the demand for fully liquid-cooled NVIDIA products [33]. - Companies are focusing on enhancing their liquid cooling product offerings to transition into complete solution providers, shifting competition from supply capability to system integration [33]. Innovations and Trends - Current liquid cooling solutions predominantly utilize single-phase cold plates, but there is growing interest in innovative technologies such as micro-channel lids, which may offer improved cooling efficiency [51][52]. - The industry is exploring new cooling technologies, but single-phase cold plates are expected to remain the mainstream solution for the next few years due to their established supply chain and reliability [59]. Mergers and Acquisitions - The report notes ongoing mergers and acquisitions in the liquid cooling sector, with North American firms focusing on data center infrastructure while mainland Chinese firms are primarily involved in consumer electronics [8]. Investment Recommendations - The report recommends focusing on mainland manufacturers with unique capabilities that can leverage the growth in liquid cooling, particularly in the ASIC segment, which is expected to see increased penetration starting in Q3 2026 [9][39].