Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The rapid growth of data centers and the increasing power demands necessitate efficient cooling technologies, with liquid cooling addressing high energy consumption and heat generation issues. By 2024, China's computing centers are expected to consume 166 billion kWh, accounting for 1.68% of the total electricity consumption [2][2] - The main liquid cooling technologies include cold plate and immersion cooling, with cold plate cooling being the most widely used due to its mature technology. Liquid cooling offers multiple advantages such as high heat transfer efficiency, energy savings, and reduced noise [2][2] - The market for cooling liquids is projected to grow significantly, with an estimated demand of approximately 89,000 tons for AI data centers by 2028, alongside 19,000 tons from traditional server installations [2][2] Summary by Sections 1. Main Cooling Paths - Liquid cooling technology is categorized into indirect cooling (mainly cold plate) and direct cooling (including immersion and spray cooling). Cold plate cooling is the most prevalent, while immersion cooling offers higher heat dissipation capabilities but comes with higher operational costs [2][2][2] 2. Water-Based Cooling Liquids - Water-based cooling liquids are primarily used in single-phase cold plate cooling, offering good thermal conductivity and low cost. However, they may pose risks of microbial growth [50][50] 3. Oil-Based Cooling Liquids - Oil-based cooling liquids, including mineral oil and synthetic oil, are mainly applied in single-phase immersion cooling. They are cost-effective and environmentally friendly but have lower thermal conductivity compared to synthetic alternatives [56][56] 4. Market Space Estimation - The liquid cooling market in China is expected to exceed 100 billion yuan by 2027, with a compound annual growth rate of 51.4% from 2019 to 2027 [17][17] 5. Commercialization of Liquid Cooling Technology - The commercialization of liquid cooling technology is increasing, with major IT companies like Alibaba, Baidu, and Tencent implementing successful liquid cooling applications [27][27]

Core Viewpoint - Dechang Motor Holdings (00179) has seen its stock price increase by over 220% year-to-date, with a current rise of 9.5% to HKD 33.88, supported by strong trading volume of HKD 424 million [1] Group 1: Joint Ventures and Market Focus - In July, Dechang Motor Holdings announced the establishment of two joint ventures with Shanghai Mechanical (600835), aimed at serving the domestic humanoid robot market [1] - The joint ventures include a design and manufacturing company, where Dechang holds a 51% stake, and a sales company, where Dechang holds a 49% stake [1] - Planned products from these joint ventures include joints for the waist, hips, knees, and ankles, as well as dexterous hand actuators and sensors [1] Group 2: Sales and Growth Expectations - Despite a 2% decline in sales for the first quarter, Citigroup expects sales to recover in the second and third quarters due to a solid backlog of orders [1] - The company is experiencing positive momentum in the humanoid robotics market, which is anticipated to create larger business opportunities [1] Group 3: Diversification and Innovation - According to the company's annual report, Dechang Motor Holdings is focusing on differentiated and innovative drive system solutions, including robotics, warehouse automation, medical devices, electric bicycles, and high-precision manufacturing and measurement equipment [1] - The company plans to enter the AI server thermal management system business, which includes components like cooling pumps [1] - The newly launched DCP series liquid cooling pumps, set to debut in May 2025, are designed for modern data centers and AI server architectures, featuring high efficiency, low noise, and modular design [1]

Core Viewpoint - Dechang Motor Holdings (00179) has seen its stock price increase by over 220% this year, with a current rise of 9.5% to HKD 33.88, supported by strong market developments and strategic partnerships [1] Group 1: Company Developments - In July, Dechang Motor Holdings announced the establishment of two joint ventures with Shanghai Electric, aimed at serving the domestic humanoid robot market [1] - The joint ventures will focus on developing products such as waist, hip, knee, and ankle joints, as well as dexterous hand actuators and sensors [1] - Despite a 2% decline in sales for the first quarter, the company expects sales to recover in the second and third quarters due to a solid backlog of orders [1] Group 2: Market Opportunities - The company is experiencing positive momentum in the humanoid robotics market, which is anticipated to create larger business opportunities [1] - Dechang Motor Holdings is also diversifying into differentiated and innovative drive system solutions, including robotics, warehouse automation, medical devices, electric bicycles, and high-precision manufacturing and measurement equipment [1] - The company plans to enter the AI server thermal management system business, with a new DCP series liquid cooling pump set to launch in May 2025, designed for modern data centers and AI server architectures [1]

Group 1 - The company has released the A sample of its 4D millimeter-wave radar and is currently striving to secure project designations from two clients [1] - The company's liquid cooling plate products are primarily used in power batteries, which differ slightly from those used in AI servers, although the basic processes are similar [1] - The company is exploring channels to understand and learn about the AI server liquid cooling business, aiming to accelerate the evaluation of potential business acquisition opportunities in this area [1]

Group 1 - The company has released the A sample of its 4D millimeter-wave radar and is currently striving to secure project designations from two clients [1] - The company's liquid cooling plate products are primarily used in power batteries, which differ slightly from those used in AI servers, although the basic processes are similar [1] - The company is exploring channels to understand and learn about the AI server liquid cooling business, aiming to accelerate the evaluation of potential business acquisition channels and opportunities [1]

Core Viewpoint - The company held a half-year performance briefing on September 3, 2025, to discuss its operational and financial status with investors [1][2]. Group 1: Meeting Details - The performance briefing was announced on August 26, 2025, and was conducted via the Shanghai Stock Exchange's online platform [2]. - Key executives, including the Chairman and General Manager, participated in the meeting to address investor inquiries [2]. Group 2: Investor Questions and Company Responses - The company confirmed it will adhere to legal disclosure requirements regarding procurement or construction contracts [2]. - The first phase of the computing power data center project has been completed and is operational as of December 31, 2024 [2]. - The company highlighted its core technologies in liquid cooling systems, including various design and application studies [3]. - The company acknowledged the impact of macroeconomic factors on stock price fluctuations and emphasized its focus on core business development [4]. - The decline in net profit for the reporting period was attributed to increased competition, lower sales prices, and rising operational costs [4]. - As of June 30, 2025, the company reported an order backlog amounting to 976.53 million yuan [4]. - The company is committed to improving operational quality and profitability while focusing on high-quality development [4].

Core Viewpoint - The company held a half-year performance briefing on September 3, 2025, to discuss its operational and financial status with investors, addressing key concerns raised by them [1][2]. Group 1: Meeting Overview - The performance briefing was conducted via the Shanghai Stock Exchange's online platform, allowing for interactive communication with investors [1][2]. - Key executives, including the chairman and general manager, participated in the meeting to provide insights into the company's performance [2]. Group 2: Investor Questions and Company Responses - The company confirmed it will adhere to legal disclosure requirements regarding procurement or construction contracts [2]. - The first phase of the computing power room has been completed and is operational, but specific revenue details were not disclosed [2][4]. - The company highlighted its core technologies in liquid cooling systems, including various research areas and applications [3]. - The company acknowledged the decline in stock price due to macroeconomic factors and emphasized its focus on core business and improving operational performance [4]. - The net profit attributable to shareholders decreased due to intense market competition, increased sales and R&D expenses, and rising operational costs from the completed data center project [4]. - As of June 30, 2025, the company had an order backlog amounting to 976.53 million yuan [4]. - The company is committed to enhancing its core competitiveness and improving profitability, with a focus on high-quality development [4].

Core Viewpoint - The article emphasizes the importance of timely and professional information interpretation in the investment landscape, focusing on the investment value of significant events, analysis of industry chain companies, and key points of major policies [1] Group 1: Product Developments - The company is advancing the application of electronic product cooling components, with its products being used in domestic AI chips, including the Ascend series, and in the AI server liquid cooling sector [1] - A subsidiary of another company has launched edge devices that provide AI server and GPU computing card solutions, enhancing computational capabilities for clients [1]

Group 1 - Nvidia's GB300 NVL72 server features a fully liquid-cooled rack design, setting a new trend for AI server cooling solutions, with a significant increase in cooling demand expected alongside rising AI server shipments [1] - The GB300 server's computing power has improved, with inference performance increasing by 1.5 times compared to the previous DGX GB200 model, leading to higher thermal design power (TDP) requirements that traditional air cooling cannot meet [1] - The report suggests focusing on upstream materials for liquid cooling solutions, particularly fluorinated refrigerants and electronic fluorinated liquids, as well as high-efficiency thermal interface materials (TIM) like liquid metals [1][4] Group 2 - Various liquid cooling solutions exist, including cold plate, immersion, and spray cooling, with high-efficiency liquid cooling heavily reliant on fluorinated materials [2] - Liquid cooling can be categorized into indirect and direct cooling, as well as single-phase and two-phase cooling, with cold plate technology being the most mature and widely used, although it has limitations in cooling effectiveness [2] - The demand for electronic fluorinated liquids is projected to reach 12.2 million tons and 25.6 million tons by 2025 and 2026, respectively, driven by increased AI server shipments, representing year-on-year growth of 150% and 110% [3] Group 3 - The combination of efficient TIM materials, such as liquid metals, with two-phase cold plate cooling solutions significantly enhances cooling performance, making cold plate cooling a viable option despite its lower cooling effectiveness compared to immersion and spray cooling [4] - Liquid metal TIM materials are compatible with both GPU and CPU thermal requirements and can be used with various cooling methods, positioning them as ideal thermal materials for high-end chips [4]

Core Viewpoint - NVIDIA is set to release its AI server, the NVIDIA DGX GB300NVL72, designed for the AI inference era, featuring enhanced computing power and a fully liquid-cooled rack design to meet the increasing thermal design power (TDP) requirements [1][2]. Group 1: AI Server Development - The NVIDIA DGX GB300NVL72 server will have a 1.5 times improvement in inference performance compared to the previous model, the DGX GB200 [2]. - The server's high chip computing capability leads to an increase in TDP, necessitating advanced cooling solutions [2]. Group 2: Liquid Cooling Technology - Various liquid cooling solutions exist, including cold plate, immersion, and spray cooling, with high efficiency relying heavily on fluorinated liquid materials [3]. - Liquid cooling can be categorized into indirect and direct cooling, as well as single-phase and two-phase cooling, with cold plate technology being the most mature and widely used [3]. Group 3: Demand for Electronic Fluorinated Liquids - The demand for electronic fluorinated liquids is expected to rise significantly, reaching 122,000 tons and 256,000 tons by 2025 and 2026, respectively, representing year-on-year growth of 150% and 110% [4]. - The global fluorinated liquid market is concentrated, with the top five manufacturers holding 80% of the market share; the exit of 3M will create structural opportunities for domestic fluorinated liquid manufacturers [4]. Group 4: Thermal Interface Materials (TIM) - The combination of efficient TIM materials, such as liquid metal, with two-phase cold plate cooling solutions offers significant advantages [5]. - Liquid metal TIM materials are ideal for high-end chips, compatible with various cooling methods, and are expected to become mainstream in the future [5]. Group 5: Investment Recommendations - The liquid cooling solution is anticipated to become the mainstream cooling method for AI servers, with a focus on upstream raw materials like fluorinated refrigerants and electronic fluorinated liquids, as well as efficient TIM materials [6].