Envicool(002837) 华鑫证券·2024-04-23 07:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the next 12 months [14]. Core Insights - The company achieved a revenue of 746 million yuan in Q1 2024, representing a year-over-year increase of 41.36%, and a net profit of 62 million yuan, up 146.93% year-over-year, showcasing strong growth [4][9]. - The gross margin for Q1 2024 was 29.5%, a decrease of 3.22 percentage points year-over-year, attributed to intensified industry competition and rising raw material costs. However, the net margin improved by 2.85 percentage points to 8.26%, driven by effective cost control and significant scale effects [9]. - The company is well-positioned in the liquid cooling market, with substantial investments in technology and a leading delivery scale, which is expected to continue benefiting from the growth in AI applications and data center demands [10][11]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 746 million yuan, a 41.36% increase year-over-year, and a net profit of 62 million yuan, reflecting a 146.93% growth [4][9]. - The projected net profits for 2024, 2025, and 2026 are 530 million yuan, 680 million yuan, and 920 million yuan respectively, with corresponding EPS of 0.93, 1.20, and 1.61 yuan [14]. Market Trends - The demand for liquid cooling solutions is expected to accelerate due to the increasing heat density in data centers driven by AI applications. Major companies are rapidly adopting liquid cooling technologies, with plans for significant implementation in new data centers [10]. - The energy storage sector is experiencing rapid growth, with new installations in China reaching 21.5 GW in 2023, indicating a robust market for the company's products [11][13]. Competitive Position - The company has established itself as a leader in the liquid cooling sector, with a cumulative delivery of 900 MW in liquid cooling solutions by March 2024. Its revenue from liquid cooling related to data centers and computing equipment was approximately four times that of 2022 [10]. - The company has consistently innovated in the energy storage temperature control market, launching several advanced cooling solutions that enhance efficiency and performance [13].