Envicool(SZ:002837) Great Wall Securities·2024-04-24 00:31Investment Rating - The report maintains a "Buy" rating for the company, with expected PE ratios of 34, 26, and 20 times for the years 2024, 2025, and 2026 respectively [1]. Core Insights - The company is projected to achieve a net profit of 510 million, 666 million, and 862 million yuan for the years 2024, 2025, and 2026, respectively, indicating a significant growth trajectory [1]. - The company reported a revenue of 7.46 billion yuan in Q1 2024, representing a year-on-year increase of 41.36%, and a net profit of 620 million yuan, which is a 146.93% increase year-on-year [19]. - The company has successfully implemented a stock option incentive plan for 305 core employees, granting 9.16 million options with an exercise price of 19.61 yuan per share, aimed at enhancing employee motivation and long-term development [8][23]. Financial Performance - The company’s revenue for 2022 was 2.923 billion yuan, with projections of 3.529 billion yuan for 2023, 4.891 billion yuan for 2024, 6.613 billion yuan for 2025, and 8.352 billion yuan for 2026, reflecting a compound annual growth rate [7]. - The net profit for 2022 was 280 million yuan, with forecasts of 344 million yuan for 2023, 510 million yuan for 2024, 666 million yuan for 2025, and 862 million yuan for 2026, indicating robust growth [7]. - The company’s gross margin for Q1 2024 was reported at 29.51%, with a net margin of 8.26%, showing improvements in profitability despite a slight decrease in gross margin year-on-year [7]. Market Position and Competitive Advantage - The company is leveraging its liquid cooling technology, which has become a preferred solution for high-density data centers, and has delivered a total of 900MW of liquid cooling projects as of March 2024 [20]. - The introduction of the BattCool solution for energy storage systems positions the company favorably in the growing market for energy storage, with the first delivery of a 5MWh high-density system completed in January 2024 [20].