Envicool(002837) 长江证券·2024-04-21 05:32Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Insights - The company achieved a record high in operating performance in 2023, continuing the trend of double growth in revenue and profit [6][9] - Revenue for 2023 reached 3.529 billion yuan, a year-on-year increase of 20.7%, while net profit attributable to shareholders was 344 million yuan, up 22.7% year-on-year [6][9] - The company is expected to benefit significantly from the rapid advancement of its liquid cooling business, with projected net profits for 2024-2026 of 507 million yuan, 694 million yuan, and 896 million yuan, representing year-on-year growth rates of 47%, 37%, and 29% respectively [9] Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 1.457 billion yuan, a year-on-year increase of 1.3%, with net profit of 134 million yuan, down 18.1% year-on-year [6][7] - The company’s gross margin for data center temperature control products improved significantly, reaching 31.53%, an increase of 6.03 percentage points year-on-year [7] - The company’s inventory increased by approximately 230 million yuan, a year-on-year growth of 53%, and contract liabilities rose by about 80 million yuan, up 84% year-on-year [7] Business Segments - The revenue from data center temperature control products was 1.64 billion yuan, a year-on-year increase of 13.8% [7] - The cabinet temperature control segment saw revenue of 1.47 billion yuan, a year-on-year increase of 33%, with storage applications contributing approximately 1.22 billion yuan, up about 44% [8] - The liquid cooling business has rapidly advanced, with related revenue in 2023 being approximately four times that of 2022, and cumulative deliveries reaching 900MW by March 2024 [8] Future Outlook - The company is positioned to benefit from the accelerated implementation of liquid cooling technologies, with a strong management capability reflected in stable gross margins despite increased competition [9] - The projected financials indicate a robust growth trajectory, with expected revenue growth from 4.39 billion yuan in 2024 to 6.8 billion yuan in 2026 [20]