Envicool(SZ:002837) Guoxin Securities·2024-03-18 16:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1][5]. Core Views - The company has been selected as the first candidate for the China Telecom Elastic DC Cabin (2024-2025) centralized procurement project, with a module quotation (including tax) of approximately 1.12 billion yuan. The total procurement includes 3,200 sets of elastic DC cabins, including about 323 sets of liquid-cooled DC cabins [1][9]. - The report highlights the growing trend of liquid cooling applications in data centers, with expectations for significant market growth driven by increasing power demands in computing centers. The company is well-positioned in the liquid cooling market and is expected to maintain strong long-term growth [8][48]. Summary by Sections Procurement Details - China Telecom is conducting centralized procurement for elastic DC cabins, with a total of 3,200 sets planned, including 323 sets of liquid-cooled DC cabins. This represents a more than 60% increase in procurement quantity compared to the previous round in 2021 [9][11]. Financial Projections - The company maintains its profit forecast, expecting net profits attributable to the parent company to be 390 million yuan, 520 million yuan, and 680 million yuan for the years 2023, 2024, and 2025, respectively. Corresponding EPS is projected to be 0.68 yuan, 0.92 yuan, and 1.20 yuan, with current stock prices corresponding to PE ratios of 52x, 38x, and 30x [8][48]. Market Outlook - The domestic liquid cooling market is expected to grow significantly, with a projected 53.2% growth in 2023, reaching a market size of 15.4 billion yuan. Over the next five years, the market is anticipated to continue expanding at a compound annual growth rate (CAGR) of 59%, potentially exceeding 100 billion yuan by 2027 [43][48].