Envicool(SZ:002837) Great Wall Securities·2024-04-19 10:01Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index in the next six months [22]. Core Views - The company has achieved continuous double growth in revenue and profit, driven by accelerated demand for computing power and sustained growth in the energy storage industry [1][12]. - The company is positioned to benefit from the ongoing upgrade in cooling demand, with a strong focus on research and development to enhance its competitive edge [13][15]. Financial Summary - Revenue for 2023 is reported at 3,529 million yuan, a year-on-year increase of 20.72%, while net profit attributable to the parent company is 344 million yuan, up 22.74% [12]. - The company forecasts net profits of 510 million yuan, 666 million yuan, and 862 million yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 33.9, 26.0, and 20.1 [5][12]. - The gross margin for 2023 improved to 32.35%, an increase of 2.54 percentage points year-on-year, attributed to cost reduction measures and stable raw material costs [13]. Business Segments - The company’s revenue from energy storage applications reached approximately 1.22 billion yuan in 2023, reflecting a year-on-year growth of 44% [15]. - The cooling products for data centers and computing equipment are expected to see rapid growth, with the company having delivered 900MW in liquid cooling solutions by March 2024 [25]. Market Position - The company is recognized as a leader in the domestic energy storage temperature control industry, leveraging its brand and customer base to capture long-term growth opportunities [15]. - The company is actively expanding into new regional markets for rail transit air conditioning projects, aiming to capitalize on the recovery trend in the industry [1].