Envicool(SZ:002837) KAIYUAN SECURITIES·2024-04-15 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][20]. Core Views - The company reported a revenue of 3.529 billion yuan in 2023, representing a year-over-year increase of 20.7%. The net profit attributable to shareholders was 344 million yuan, up 22.7% year-over-year [5]. - The company is expected to benefit from the expansion of downstream applications, particularly in the data center and energy storage temperature control sectors [5][6]. - The report anticipates an increase in net profit to 514 million yuan in 2024 and 694 million yuan in 2025, with earnings per share (EPS) projected at 0.90 yuan and 1.22 yuan respectively [5]. Financial Performance Summary - In 2023, the company achieved a revenue of 35.29 billion yuan, with a year-over-year growth of 20.7%. The net profit attributable to shareholders was 3.44 billion yuan, reflecting a year-over-year increase of 22.7% [5]. - The company’s Q4 2023 revenue was 1.46 billion yuan, showing a quarter-over-quarter increase of 74.9% and a year-over-year increase of 1.3% [5]. - The gross margin for Q4 2023 was 32.0%, with a net margin of 9.2% [5]. Revenue Breakdown - The company's revenue from data center temperature control equipment was 1.64 billion yuan in 2023, up 14% year-over-year, with a gross margin of 31.5% [6]. - Revenue from energy storage temperature control reached 1.22 billion yuan, marking a significant year-over-year increase of 44% [7]. Future Outlook - The company plans to continue expanding its liquid cooling products in data centers and enhance its overseas market presence, particularly in the liquid cooling computing power sector [6]. - Continuous investment in new product development is expected to maintain the company's competitive edge in the energy storage temperature control market [7].